JSE reports 32% increase in nine months net profits

October 28, 2021

Jamaica Stock Exchange Limited (JSE), for the nine months ended September 30, 2021 recorded total revenue of $1.47 billion, a 17% increase when compared to the $1.26 billion booked for the prior year’s similar period. While total revenue for the quarter amounted to $621.41 million (2020: $373.24 million). Of this:

    • Cess income grew by 58% to $366.02 million relative to $231.56 million the previous year.
    • Fee income grew by 9% to $1.02 billion to close the period, compared to 2020’s $933.90 million.
    • E-campus increased to $30.66 million, relative to $24.37 million in 2020.
    • Other operating income declined 13% during the period to total $61 million compared to $70.25 million last year.

Total expenses for the period decreased by 12% moving from $838.82 million in 2020 to $942.25 million in 2021. For the third quarter, total expenses amounted to $352.23 million, a 34% increase when compared to $263.43 million in 2020. Of this:

    • Staff costs increased 29% to total $436.14 million for the period relative to $337.78 million in 2020. This was “due primarily to movement in salaries and related expenses. This includes the engagement of new employees in keeping with service expansion,” as per JSE.
    • Depreciation and amortization totaled $49.24 million for the period relative to $50.33 million in 2020, a 2% fall.
    • Additionally, professional fees amounted to $84.41 million (2020: $70.93 million), a 19% increase year over year.
    • Property expenses climbed 17% from $165.84 million for the nine months ended September 30, 2020, to $193.61 million during the period under review.  JSE noted that, “this is attributed to increases in maintenance costs and licences expense.”
    • Other operating expenses fell 12% to $46.58 million from $52.69 million the previous year.
    • Advertising and promotion decreased from $77.55 million in 2020 to $53.79 million in 2021.
    • Securities commission fees posted a 46% increase for the period to close at $52.32 million (2020: $35.93 million).
    • ‘Net impairment gain on financial assets’ of $762,000 (2020: $25.88 million) was recorded for the period.
    • E-campus expenses amounted to $25.40 million (2020: $21.90 million).

Investment income fell 10% to $30.02 million versus $33.46 million in 2020.

Profit before tax totaled $561.12 million compared to $454.72 million the year prior. While for the quarter, profit before tax closed at $279.66 million (2020: $120.47 million).

Tax charges for the period totaled $183.38 million (2020: $168.45 million).

As such, JSE reported a net profit of $377.74 million compared to a profit of $286.27 million reported for the prior year, a 32% increase. Net profit for the quarter amounted to $187.32 million (2020: $73.14 million).  Management noted that, ” This positive change is due to increases in Cess and Fee Income resulting from improved market activities as well as income derived from new services being offered by the Group.”

Total comprehensive income for the period under review amounted to $376.63 million relative to $284.68 million in 2020, while for the quarter total comprehensive income amounted to $186.38 million (2020: $79.14 million).

Earnings per share for the quarter totalled $0.27 compared to $0.10 in 2020, while for the nine months ended September 30, 2020, EPS was $0.54 compared to $0.41 in 2020. Twelve months trailing EPS amounted to $0.71. The numbers of shares used in the calculations are 701,250,000.00 units. JSE last traded on October 28, 2021 at $17.61 with a corresponding P/E of 24.78 times.


Balance Sheet at a glance:-

As at September 30, 2021, assets totalled $2.16 billion, a 19% increase when compared with its balance of $1.81 billion a year prior. The increase was due to a 15% increase in ‘Government Securities Purchased Under Resales Agreements’ from $297 million as at September 30, 2020 to $493.74 million. Property, Plant & Equipment also contributed to the upward movement to close at $702.02 million compared to $612.14 million in 2020.

Shareholders’ Equity amounted to $1.72 billion (2020: $1.39 billion), resulting in a book value per share of $2.45 (2020: $1.98).



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