Home Business Barclays opens trading arm as margins thin Thursday January 21 2016 email print East Africa has agreed to fast-track the unification of the four bourses via an online portal allowing cross-trading in securities. PHOTO | FILE In Summary SBG Securities, the brokerage arm of CfC Stanbic Bank, also reported a seven per cent drop in 2015 half-year profitability. Advertisement By BRIAN NGUGI More by this Author Barclays Bank of Kenya subsidiary, Barclays Financial Services limited Wednesday commenced trading on the Nairobi Securities Exchange, (NSE) following what it termed as “extensive system testing and integration,” since its admission as a trading participant.Poor performance at the Nairobi Securities Exchange has seen brokerages firms report weak earnings even as more banks go for the pie.Co-operative Bank’s brokerage arm Kingdom Securities reported a drop in profitability for the first half of 2015 due to the reduced trading commission income at the bourse. Revenues mainly comprises brokerage commissions, interest and advisory income.Kingdom Securities reported Sh2.6 million net profit, slightly more than a quarter of Sh9.9 million posted over the same period in 2014.Drop in profitabilitySBG Securities, the brokerage arm of CfC Stanbic Bank, also reported a seven per cent drop in 2015 half-year profitability. The brokerage posted a net profit of Sh126 million for first six months of 2015 compared to Sh135 million a similar period in 2014. However, Genghis Capital, a subsidiary of Chase Bank, managed to increase its profitability in the first half of 2015. Its net profits increased by 60 per cent to stand at Sh22 million from Sh14 million, buoyed by an increase in both brokerage commissions and advisory income. Capital gains tax and the weakening of the shilling have been cited as the main causes of the bourse’s poor performance last year.“Barclays Bank is only the most recent example of ''commercial'' Banks seeking to open a direct Channel to the Securities Exchange. Equity Investment Bank has already arrived and Kenya Commercial Bank surely will be not far behind. I think the banks are seeing a demand pull where customers are seeking access and whilst the various iterations are different the story is really about putting balance sheet to work,” said Nairobi based analyst Aly Khan Satchu. email print In the headlines The transformation of Ababu and Karua Once some of the fiercest critics of Uhuru and Ruto, LPK and Narc-Kenya leaders are now in Election 2017: Who will be president? Some are career politicians, others are teachers, one recently returned from the US, and another Prosecutors want Boniface Mwangi arrested Ex-Panamanian dictator Manuel Noriega dies The rise and fall of Noriega May, Corbyn clash over Brexit Waiguru seeks to block lifestyle audit JUST BRENDA: My girlfriend can't cook, help!