November 14, 2022

Jamaica Stock Exchange Limited (JSE), for the nine months ended September 30, 2022 recorded total revenue of $1.71 billion, a 16% increase compared to the $1.47 billion booked for the prior year’s similar period. While total revenue for the quarter amounted to $579.15 million (2021: $621.41 million). Of this:

• Cess income grew by 12% to $408.11 million relative to $366.02 million the previous year.
• Fee income grew by 18% to $1.20 billion to close the period, compared to 2021’s $1.02 billion.
• E-campus decreased to $29.34 million, relative to $30.66 million in 2021.
• Other operating income increased by 20% during the period to total $73.01 million compared to $61 million last year.

Total expenses for the period increased by 10% moving from $942.25 million in 2021 to $1.10 billion in 2022. For the third quarter, total expenses amounted to $382.10 million, an 8% increase when compared to $352.23 million in 2021. Of this:

Staff costs increased 15% to total $502.33 million for the period relative to $436.14 million in 2021. This was due to a 6% increase in salaries.as per JSE.

• Depreciation and amortization totaled $59.94 million for the period relative to $49.24 million in 2021, a 22% rise.
• Additionally, professional fees amounted to $101.74 million (2021: $84.41 million), a 21% increase year over year.
• Property expenses climbed 13% from $193.61 million for the nine months ended September 30, 2021, to $219.52 million during the period under review.  JSE noted that, “this is due to increases in maintenance and utilities.”
• Other operating expenses rose 18% to $55.03 million from $46.58 million recorded the previous year.
• Advertising and promotion increased from $53.79 million in 2021 to $85.94 million in 2022.
• Securities commission fees posted a 12% increase for the period to close at $58.79 million (2021: $52.32 million).
• E-campus expenses amounted to $24.69 million (2021: $25.40 million).

Investment income fell 70% to $9.05 million versus $30.02 million in 2021.

Profit before tax totaled $624.46 million compared to $561.12 million the year prior. While for the quarter, profit before tax closed at $206.06 million (2021: $279.66 million).

Tax charges for the period totaled $206.89 million (2021: $183.38 million).

As such, JSE reported a net profit of $417.57 million compared to a profit of $377.74 million reported for the prior year, a 10% increase. Net profit for the quarter amounted to $137.83 million (2021: $187.32 million).

Total comprehensive income for the period under review amounted to $389.44 million relative to $376.63 million in 2021, while for the quarter total comprehensive income amounted to $135.50 million (2021: $186.38 million).

Earnings per share for the quarter totalled $0.20 compared to $0.27 in 2021, while for the nine months ended September 30, 2022, EPS was $0.59 compared to $0.54 in 2021. Twelve months trailing EPS amounted to $0.77. The numbers of shares used in the calculations are 701,250,000 units. JSE last traded on November 11, 2022 at $15.15 with a corresponding P/E of 19.79 times.

Balance Sheet at a glance:

As at September 30, 2022, assets totalled $2.41 billion, an 11% increase when compared with its balance of $2.16 billion a year prior. The increase was due to a 23% increase in ‘Government Securities Purchased Under Resales Agreements’ from $493.74 million as at September 30, 2021 to $606.53 million in 2022. Property, Plant & Equipment also contributed to the upward movement to close at $910.90 million compared to $703.02 million in 2021.

Shareholders’ Equity amounted to $1.98 billion (2021: $1.72 billion), resulting in a book value per share of $2.82 (2021: $2.45).

Disclaimer: