November 15, 2023

Jamaica Stock Exchange Limited (JSE) for the nine months ended September 30, 2023, reported a 4% decrease in total income totaling $1.65 billion compared to $1.71 billion in the corresponding period last year. Total income for the third quarter had a 11% decrease to close at $514.36 million compared to $579.15 million for the comparable quarter of 2022.

Fee Income amounted to $1.30 billion (2022: $1.20 billion), this represents an increase of 8% year over year.

Other operating income increased by 10% to $80.41 million compared to $73.01 million for the nine months ended September 30, 2022.

Cess decreased by 40% to close at $244.61 million (2022: $408.11 million), reflecting lower market activities.

Staff costs increased by 17% from $502.33 million in 2022 to $590.18 million in the period under review, while Property expenses grew 13% to $247.07 million (2022: $219.52 million). Also, other operating expenses amounted to $79.56 million (2022: $55.03 million).

As a result, total expenses for the nine months ended September 30, 2023, amounted to $1.25 billion, a 14% increase relative to $1.10 billion reported in 2022.

Investment Income for the nine months ended September 30, 2023, amounted to $41.89 million, a 363% increase relative to $9.05 million reported in 2022.

Profit before Taxation for the nine months ended September 30, 2023, amounted to $445.43 million, a 29% decrease relative to $624.46 million reported in 2022. Profit before Taxation for the third quarter amounted to $109.22 million (2022: $206.06 million).

Taxation for the nine months ended September 30, 2023, amounted to $167.96 million (2022: $206.89 million).

As such, net profit for the nine months amounted to $277.47 million, a 34% decrease from the $417.57 million reported in 2022. For the third quarter, Net profit was $54.88 million (2022: $137.83 million).

JSE highlighted, “The Third Quarter performance has been weak. We anticipate that as interest rates trend down and other market turbulence subsides, investors and companies will be more active in the market, which will result in improved performance. We have made significant stride in our diversification strategies, and this has and will continue to support us as we cope with geo-political unrest and other uncertainties in the economy that have impacted the market.”

Consequently, Earnings Per Share for the nine months amounted to $0.40 (2022: EPS of $0.60), while Earnings Per Share for the quarter totaled $0.08 (2022: EPS of $0.20). The twelve-month trailing EPS was $0.52 and the number of shares used in these calculations was 701,250,000.

Notably, JSE’s stock price closed the trading period on November 14, 2023 at a price of $8.98 with a corresponding P/E ratio of 17.34x.

Balance Sheet Highlights

The company’s assets totalled $2.95 billion (2022: $2.41 billion). Notably, ‘Property plant and equipment’ increased 26% to $1.15 billion from $910.90 million in 2022, and ‘Post employment benefits’ increased 198% to $186.11 million from $62.39 million in 2022, accounting for the growth in the company’s total assets.

Shareholder’s equity was $2.41 billion (2022: $1.98 billion), representing a book value per share of $3.43 (2022: $2.82).

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