JSE reports 26% increase in year end net profits

March 02, 2020

JSE recorded total revenue of $1.87 billion, a 35% increase when compared to the $1.39 billion booked the prior year. Of this:

    • Cess income rose by 41% to $697.32 million relative to $494.71 million the previous year.
    • Fee income grew by 29% to $1.05 billion to close the year, compared to $808.15 million in 2018.
    • E-campus showed an increase of 221% to $48.31 million, relative to $15.06 million in 2018.
    • Other operating income rose 15% during the period to total $83.68 million compared to $72.93 million in 2018.

Total expenses for the year increased by 34% moving from $817.21 million in 2018 to $1.09 billion in 2019.  Of this:

o    Staff cost increased 27% to total $450.09 million for the year (2018: $353.07 million).

o    Depreciation and amortization totaled $59.41 million for the year relative to $50.38 million in 2018.

o    Professional fees amounted to $49.98 million (2018: $55.48 million) a 10% decline year over year.

o    Property expenses climbed 32% to $179.51 million (2018: $136.29 million) for the period.

o    Other operating expenses grew by 18% to $63.28 million from $53.52 million the previous year.

o    Advertising and promotion was up by 135% from $59.33 million in 2018 to $139.33 million.

o    Securities commission fees posted a 39% increase year over year to close at $103.04 million (2018: $74.36 million).

o    Expenses associated with E-Campus amounted to $41.66 million compared to $19.41 million in 2018.

Investment income rose from $18.86 million in 2018 to $22.05 million in 2019.

Profit before tax totaled $803.07 million compared to $592.27 million the prior year’s corresponding period. Tax charges for the year totaled $283.20 million (2018: $179.44 million).

Consequently, JSE reported a net profit for the year of $519.88 million compared to a profit of $413.06 million in the prior year, a 26% growth.

Total comprehensive income amounted to $625.39 million relative to $410.10 million in 2018.

Earnings per share for the year totaled $0.74 compared to $0.59 in 2018.  EPS for the quarter amounted to $0.16 compared to $0.17 for the fourth quarter of 2018.  The numbers of shares  used in the calculations are 701,250,000.00 units. JSE stock price closed the trading period on March 02, 2019 at $28.19.

Balance Sheet at a glance:-

As at December 31, 2019, assets totaled $1.81 billion, a 19% increase when compared with its balance of $1.51 billion a year prior. The increase was due to a 49% increase in ‘Government Securities Purchased Under Resales Agreements’ from $214.39 million to $320.17 million. ‘Property, Plant & Equipment’ also contributed to the increase amounting to $591 million (2018:$491.22 million)

Shareholders’ Equity amounted to $1.47 billion (2018: $1.13 billion), resulting in a book value per share of $2.10 (2018: $1.60).

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