JSE reports 80% increase in first quarter net profits

Date: May 15, 2018

Jamaica Stock Exchange Limited (JSE), for the first three months ended March 31, 2018 recorded total revenue of $349.58 million, a 45% increase when compared to the $241.07 million booked the prior year.

Of this:
Cess income rose by 84% to $126.06 million relative to $68.56 million the previous year.
Fee income grew by 39% to $187.55 million to close the quarter, compared to $134.48 million in 2017.
E-campus showed an increase of 21% to $3.24 million, relative to $2.68 million in 2017.

Other operating income fell 7% during the period to total $32.73 million compared to $35.35 million in 2017.

Total expenses for the year increased by $44.81 million or 28% moving from $161.95 million in 2018 to $206.76 million in 2017.

Of this:
Staff cost increased 15% to total $86.06 million for the period (2017: $75.11 million) and was primarily due to, “salaries associated with new staff hires required to support new business lines and expansion of current business.”
Depreciation and amortization totaled $12.50 million for the year relative to $6.20 million in 2017 and was as a result of the, “acquisition of new assets and an increase in the revaluation of property.”

Professional fees amounted to $17.25 million (2017: $10.63 million) a 62% increase year over year. JSE noted, “This was due to payment of fees to consultants engaged to assist the JSEG in specific growth related projects.”

Property expenses climbed $3.65 million to $31.89 million (2017: $28.24 million) during the year under review and is, “correlated to Cess Fees earned.”

Other operating expenses grew by 57% to $13.27 million from $8.46 million the previous year.

Advertising and promotion was up by 5% from $20.57 million in 2017 to $21.61 million.

Securities commission fees posted an 92% increase year over year to close at $18.57 million (2016: $9.68 million).

Investment income climbed from $5.44 million in 2017 to $8.39 million in 2018.

Profit before tax totaled $151 million compared to $84.56 million the prior year’s corresponding period. Tax charges for the quarter totaled $49.69 million (2017: $28.32 million).

Consequently, JSE reported a net profit for the quarter of $101.31 million compared to a profit of $56.24 million in the prior year, a 80% hike.

Total comprehensive income amounted to $97.15 million relative to $59.22 million in 2017.

Earnings per share for the quarter totaled $0.14 compared to $0.08 in 2017. The trailing EPS is $0.38. The numbers of shares used in the calculations are 701,250,000.00 units. JSE stock price closed the trading period on May 14, 2018 at $7.00.

JSE also noted, “There were two listings on the Junior Market in the first Quarter. It is expected that for the remaining quarters additional listings will occur. The positive movement in Fee Income is expected to continue as the customer base increases. The Group continues in the medium term to pursue a strategic path of growth through the promotion of new and existing markets, new product developments and continuous improvement of service delivery to the Group’s customers and their stakeholders.”

Balance Sheet at a glance:-

As at March 31, 2018, assets totaled $1.38 billion, a 21% increase when compared with its balance of $1.14 billion a year prior. The increase was due to a 78% increase in ‘Trade and Other Receivables’ from $170.34 million to $303 million. ‘Government Securities Purchased Under Resales Agreements’ amounted to $208.57 million (2017:$105.80 million) and also contributed to the rise in total assets.

Shareholders’ Equity amounted to $1.04 billion (2017: $867.31 million), resulting in a book value per share of $1.48 (2017: $1.24).


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