May 13, 2022

Jamaica Stock Exchange Group (JSE) for the first three months ended March 31, 2022 recorded total revenue of $561.71 million, a 37% increase when compared to the $410.44 million booked the prior comparable quarter. Of this:

• • Cess income increase by 158% from $50.27 million booked for the period ended March 2021 to $129.70 million recorded for the period under review.
  • Fee income grew by 20% to $372.99 million to close the quarter under review up from $310.68 million reported in the same quarter of 2021.
  • E-campus showed an increase of 15% to $10.95 million relative to $9.51 million documented in the prior comparable quarter.
  • Other operating income rose 20% during the period to total $48.06 million compared to $39.98 million booked in the same quarter last year.

Total expenses for the year increased by 18% moving from $305.36 million recorded as at March 2021 to $359.10 million in the first quarter of 2022.  Of this:

• • Staff cost increased 20% to total $161.18 million for the period under review (2021: $134.11 million) and was primarily due to, “a 6% increase in salaries as well as a reclassification exercise resulting in the upward movement in salaries of some positions,” JSE noted.
  • Depreciation and amortization totaled $18.46 million for the quarter, relative to $16.67 million recorded in the prior comparable quarter.
  • Professional fees amounted to $30.86 million (2021: $33.25 million), resulting in a 7% year over year decrease.
  • Property expenses climbed 9% to $67.73 million (2021: $62.15 million) for the period under review.
  • Other operating expenses fell by 10% to $12.77 million (2021: $14.16 million).
  • Advertising and promotion went up by 19% from $33.59 million in 2021 to $39.88 million booked for the first quarter of 2022.
  • Securities commission fees posted a 127% increase to close at $17.70 million (2021: $7.78 million) and as stated by JSE, “reflecting the direct correlation between Cess revenue and fees paid.”.
  • Net impairment losses on financial assets closed at $3.97 million, relative to a gain of $2.76 million booked in the previous corresponding quarter. Management commented that, “this increase is due to the Expected Credit Loss Model utilized where provision is made for receivable over 180 days. The Group continues to manage this risk..”
  • E-campus expense increased by 2% to $6.55 million (2021: $6.40 million).

Investment income declined from $9.25 million recorded for the first quarter in 2021 to $3.10 million as at March 2022.

Profit before tax totaled $205.70 million compared to $114.33 million reported in the same quarter of last year.

Tax charges for the quarter totaled $69.73 million (2021: $40.20 million). As such, JSE reported a net profit for the quarter of $135.98 million compared to a profit of $74.13 million in the prior comparable quarter, reflecting a 83% increase. Notably, JSE highlighted that, “the increase in Net Profit reflects the improvement in Total Income during the quarter, primarily driven by the higher trading values in the market.”

Total comprehensive income amounted to $127.52 million relative to $72.27 million recorded in the previous corresponding quarter.

Earnings per share for the quarter totaled $0.19 (2021: $0.11).  The twelve-months trailing EPS is $0.80.  The numbers of shares used in the calculations are 701,250,000 units. JSE stock price closed the trading period on May 12, 2022 at $24.12, with a corresponding P/E of 30.25 times.

JSE highlighted, “The JSEG will continue in the medium to long term to pursue a strategic path of growth through the exploration and 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 March 31, 2022, total assets totaled $2.58 billion, a 23% increase when compared to $2.10 billion a year prior. The increase was due to a 28% increase in ‘Property, Plant and Equipment’ to $881.44 million in 2022 to $688.16 million booked for the pior period. ‘Government Securities purchased under resale agreement’ also contributed to the increase by amounting to $604.30 million (2021: $443.46 million).

Shareholders’ Equity amounted to $2.02 billion (2021: $1.61 billion), resulting in a book value per share of $2.88 (2021: $2.29).

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