Jamaica Stock Exchange (JSE) had a successful 2016 with a positive outlook for 2017

Introduction:

The Jamaica Stock Exchange (JSE) held is Annual General meeting on June 22, 2017. The Jamaica Stock Exchange (JSE) Chairman Mr. Ian McNaughton commenced the Annual General Meeting (AGM) by introducing the members of the board who were in attendance. He then proceeded to give an overview of the company’s performance for the 2016 financial year.

Key Financial Performance:

According to Mr. McNaughton, “2016 was another successful for the Jamaica Stock Exchange, a year in which profit reached a record $224 million from $175 million in the prior year.” Mr. McNaughton stressed that even with a significant increase in revenue the JSE has managed to keep expenses down. The tempered growth in cost was due to increased operationally efficiency in the JSE, as the company retained 39 cents of each $1 earned compared to 36 cents the prior year. He also made mention of the company’s Shareholder Equity which increase from $621 million to $808 million at the close of 2016, while earning per share increased from 25 cents to 32 cents. He also noted that the performance of the JSE was in the context of lower world oil prices, economic recovery of many trading partners, Brexit/IN and the election of president Trump. Mr McNaughton posited that, “while some of these events have no yet impacted the local economy; it is conceivable that the events will bring about changes in 2017 and 2018”

The Jamaican economy while still facing challenges grew by 1.4% in 2016, which has had a positive effect on the JSE and the companies listed on the exchange.  According to Mr. McNaughton, “this was also accompanied by a 57% increase in new accounts by investors investing in the stock market. Mr McNaughton on behalf of the JSE thanked the Government for keeping in place the tax break for junior market listed companies.

Key Performance Highlights

For the three months ended March 30, 2017, Jamaica Stock Exchange (JSE) recorded total revenue of $241.07 million, a 26% decrease when compared to the $326.82 million booked the prior year’s corresponding period.

    • Cess income declined 63% to $68.56 million relative to $183.38 million the previous year.
    • Fee income grew $21.14 million to close the period at $134.48 million (2016: $113.35 million).
    • E-campus showed a decrease of 27% to $2.68 million, relative to $3.68 million in 2016.
    • Other operating income rose 2% during the period to total $51.51 million compared to $50.63 million in 2015.

Total expenses for the period inched up by $11.65 million or 8% moving from $150.30 million in 2016 to $161.95 million.

Consequently, profit before tax totalled $84.56 million compared to $186.77 million the year prior. Tax charges for the period decreased to $28.32 million relative to $61.28 million the prior year.

Outlook 2017:

Mr McNaughton expressed that the outlook for 2017 is positive as the board and management of the JSE expects to see new listings on the exchange for the year. He also expects that all aspects of the JSE business will continue to grow in 2017, especially depository and trustee services. In closing his remarks he made mention of the dedicated staff and congratulated them on their ownership of the strategic plan and their efficiency in its execution.

 

 

Disclaimer:

Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.

Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.

2017-06-22T23:05:52+00:00