JSE reports 22% decrease in year end net profit

Market News

March 2, 2021

March 02, 2021

Jamaica Stock Exchange Limited (JSE), for the year ended December 31, 2020, recorded total revenue of $1.71 billion, a 9% decrease when compared to the $1.87 billion booked the prior year. Of this:

Cess income fell by 46% to $380.02 million relative to $697.32 million the previous year.
Fee income grew by 16% to $1.22 billion to close the year, compared to $1.05 billion in 2019.
E-campus showed a decrease of 34% to $31.65 million, relative to $48.31 million in 2019.
Other operating income rose 1% during the period to total $84.61 million compared to $83.68 million in 2019.
Total revenue for the quarter amounted to $451.31 million (2019: $484.85 million).

Total expenses for the year increased by 4% moving from $1.09 billion in 2019 to $1.14 billion in 2020. Of this:

- Staff cost increased 6% to total $477.32 million for the year (2019: $450.09 million).
- Depreciation and amortization totaled $67.17 million for the year relative to $59.41 million in 2019.
- Professional fees amounted to $75.50 million (2019: $49.98 million) a 51% increase year over year.
- Property expenses climbed 28% to $229.77 million (2019: $179.51 million) for the period.
- Other operating expenses grew by 14% to $72.01 million from $63.28 million the previous year.
- Advertising and promotion was down by 35% from $90.75 million in 2019 to $139.33 million.
- Securities commission fees posted a 44% decrease year over year to close at $57.66 million (2019: $103.04 million).
- Expenses associated with E-Campus amounted to $29.22 million compared to $41.66 million in 2019.

Total expenses for the quarter amounted to $298.07 million (2019: $296.88 million).

Investment income rose from $22.05 million in 2019 to $43.97 million in 2020.

Profit before tax totaled $618.47 million compared to $803.07 million the prior year’s corresponding period. Tax charges for the year totaled $211.53 million (2019: $283.20 million).

Consequently, JSE reported a net profit for the year of $406.94 million compared to a profit of $519.88 million in the prior year, a 25% decline. Net profit for the quarter amounted to $120.66 million (2019: $110.76 million).

Total comprehensive income for the year amounted to $428.76 million relative to $625.39 million in 2019.

Earnings per share for the year totaled $0.58 compared to $0.74 in 2019. EPS for the quarter amounted to $0.17 compared to $0.16 for the fourth quarter of 2019. The numbers of shares used in the calculations are 701,250,000.00 units. JSE stock price closed the trading period on March 02, 2021 at $18.04 at a corresponding P/E of 31.09 times.

Balance Sheet at a glance:-

As at December 31, 2020, assets totalled $1.87 billion, a 4% increase when compared with its balance of $1.81 billion a year prior. The increase was due to a 31% increase in ‘Cash and Cash Equivalents’ from $107.11 million to $140.51 million and a 15% increase in ‘Property, Plant & Equipment’ also contributed to the increase amounting to $679.52 million (2019: $591 million).

Shareholders’ Equity amounted to $1.53 billion (2019: $1.47 billion), resulting in a book value per share of $2.19 (2019: $2.10).

Disclaimer: Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. 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.