JSE reports 13% decrease in six months net profit

Jamaica Stock Exchange Limited (JSE), for the first six months ended June 30, 2020 recorded total revenue of $886.85 million, a 1% increase when compared to the $874.52 million booked the prior year’s corresponding period. For the second quarter the company reported a 12% decrease in total revenue to close the quarter at $378.26 million (2019: $429.41 million). JSE’s revenue breakdown for the six months period are as followed:

  • Cess income decreased 39% to $174.45 million relative to $287.70 million the previous year.
  • Fee income grew $133.86 million to close the period at $635.45 million (2019: $501.59 million).
  • E-campus showed a decrease of 50% to $16.99 million, relative to $33.83 million in 2019
  • Other operating income rose 17% during the period to total $59.95 million compared to $51.40 million in 2019.

Total expenses for the second quarter decreased slightly by 1% to $259.14 million (2019: $262.47 million). However, total expenses for the six months increased up by $51.85 million or 10% moving from $523.54 million in 2019 to $575.39 million booked for the period under review. Of this:

  • Staff Costs had a 6% increase for the period totaling $224.53 million (2019: $211.99 million). Staff Costs for the quarter increased by $5.14 million or 5% to $109.91 million (2019: $104.78 million).
  • Depreciation and amortization totaled $33.71 million relative to $26.34 million in 2019. For the second quarter, depreciation and amortization went up by $3.69 million (28%) to close at $16.80 million (2019: $13.11 million).
  • Professional fees amounted to $45.58 million (2019: $30.32 million), a 50% increase year over year, for the six months ended June 2020. For the quarter, JSE registered an increase of 92% to close at $26.79 million (2019: $13.96 million).
  • Property expenses climbed $37.08 million to $119.10 million (2019: $82.03 million) during the period under review. In addition, property expenses in Q2 exceeded 2019 by $13.35 million (31%) amounting to $56.26 million (2019: $42.91 million).
  • Other operating expenses decreased by 1% to $32.69 million from $33.08 million the previous year. Whereas, Q2 experience a decrease of 42% to $10.93 million (2019: $18.80 million).
  • Advertising and promotion decreased from the $63.09 million booked for the six months of 2019 to $60.52 million for the corresponding period in 2020. For the quarter, Advertising and promotion decreased 67% to $8.61 million (2019: $25.93 million).
  • Securities commission fees posted a 40% decrease year over year to close at $26.65 million (2019: $44.26 million). Likewise, during the quarter, Securities common fees decreased 40% to $13.64 million (2019: $22.61 million).
  • Lastly, E-campus expenses decreased by 37% to $14.76 million (2019: $23.59 million), while, for the quarter E-campus expense decreased by 50% to $6.60 million (2019: $13.25 million).

Investment income moved from $13.66 million posted for the six months period in 2019 to $22.79 million, reflecting an 67% increase year over year.

Consequently, profit before tax totaled $334.25 million compared to $364.65 million the year prior. For the second quarter the company reported a 25% decrease in profit before taxation totaling $135.30 million compared to $179.49 million recorded for the prior year’s similar quarter. Tax charges for the six months rose to $121.12 million relative to $119.28 million the prior year.

As such, JSE reported a net profit of $213.13 million for the six months compared to a profit of $245.37 million for the prior year, a 13% decline year over year. Net profit for the quarter had a 28% decrease to total $87.99 million compared to $121.76 million the year prior.

Total comprehensive income for the six months closed at $205.54 million relative to an income of $252.15 million. As for the quarter, total comprehensive amounted to $101.97 million ($125.54).

Earnings per share for the six months totaled $0.30 compared to $0.35 in 2019. EPS for the quarter amounted to $0.13 (2019: $0.17). The trailing twelve months earnings per share amounted to $0.70. The numbers of shares used in the calculations are 701,250,000 units. JSE stock price last traded on August 10, 2020 at $23.50.

Balance Sheet at a glance:-

As at June 30, 2020, assets totaled $1.85 billion, a 17% increase when compared with its balance of $1.58 billion a year prior. The increase was due to an 18% increase in ‘Property, Plant and Equipment’ from $503.20 million to $592.19 million in 2020. ‘Trade and Other Receivables’ also contributed to the increase amounting to $341.83 million (2019: $297.52 million)

Shareholders’ Equity amounted to $1.42 billion (2019: $1.20 billion), resulting in a book value per share of $2.02 (2019: $1.71).



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