JSE reports 22% decrease in year end net profit

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).



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