JSE reports 30% decrease in nine months net profit

November 12, 2020

Jamaica Stock Exchange Limited (JSE), for the nine months ended September 30, 2020 recorded total revenue of $1.26 billion, a 9% decrease when compared to the $1.39 billion booked for the prior year’s similar period. While total revenue for the quarter amounted to $373.24 million (2019: $515 million). Of this:

    • Cess income fell by 55% to $231.56 million relative to $509.28 million the previous year.
    • Fee income grew by 21% to $933.90 million to close the period, compared to 2019’s $771.70 million.
    • E-campus decreased to $24.37 million, relative to $40.36 million in 2019.
    • Other operating income climbed 3% during the period to total $70.25 million compared to $68.19 million last year.

Total expenses for the period increased by 5% moving from $796.47 million in 2019 to $838.82 million in 2020. For the third quarter total expenses amounted to $263.43 million, a 3% decline when compared to $272.93 million in 2019. Of this:

    • Staff costs increased 6% to total $337.78 million for the period (2019: $317.99 million).
    • Depreciation and amortization totalled $50.33 million for the period relative to $41.36 million in 2019, a 22% uptick.
    • Additionally, professional fees amounted to $70.93 million (2019: $48.40 million), a 47% increase year over year.
    • Property expenses climbed 25% from $132.15 million for the nine months ended September 30, 2019 to $165.84 million during the period under review.
    • Other operating expenses grew by 13% to $52.69 million from $46.65 million the previous year.
    • Advertising and promotion decreased from $93.52 millionin 2019to $77.55 million in 2020.
    • Securities commission fees posted a 53% decrease for the period to close at $35.93 million (2019: $76.03 million).
    • ‘Net impairment gain on financial assets’ of $25.88 million (2019: $8 million) was recorded for the period.
    • Ecampus expenses amounted to $21.90 million (2019: $32.38 million).

Investment income rose by 67% to $33.46 million versus $20.07 million in 2019.

Profit before tax totalled $454.72 million compared to $613.12 million the year prior. While for the quarter, profit before tax closed at $120.47 million (2019: $248.47 million).

Tax charges for the period totalled $168.45 million (2019: $204 million).

As such, JSE reported a net profit of $286.27 million compared to a profit of $409.12 million reported for the prior year, a 30%decrease. Net profit for the quarter amounted to $73.14 million (2019: $163.75 million).

Total comprehensive income for the period under review amounted to $284.68 million relative to $424.77 million in 2019, while for the quartertotal comprehensive incomeamounted to $79.14 million (2019: $172.62 million).

Earnings per share for the quarter totalled $0.10 compared to $0.23 in 2019, while for the nine months ended September 30, 2020, EPS was $0.41 compared to $0.58 in 2019. The twelve months trailing EPS is $0.57. The numbers of shares used in the calculations are 701,250,000.00 units. JSE last traded on November 12, 2020 at $18.20.

Management added, “The JSEG will continue in the medium to long-term to pursue a strategic path of growth through the promotion of new and existing markets, new product development and the continuous improvement in systems and service delivery to the JSEG’s customers and other stakeholders.” 

Balance Sheet at a glance:-

As at September 30, 2020, assets totalled $1.81 billion, a 10% increase when compared with its balance of $1.65 billion a year prior. The increase was due to a 20% increase in Property, Plant and Equipment from $508.77 million as at September 30, 2019 to $612.14 million. Employee Benefits also contributed to the upward movement to close at $130.11 million compared to $89.81 million in 2019.

Shareholders’ Equity amounted to $1.39 billion (2019: $1.27 billion), resulting in a book value per share of $1.98 (2019: $1.81).


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.