JSE reports 87% increase in year end net profits

Date: March 1, 2019

Jamaica Stock Exchange Limited (JSE), for the year ended December 31, 2018, recorded total revenue of $1.39 billion, a 40% increase when compared to the $991.15 million booked the prior year. Total revenue for the quarter amounted to $385.40 million (2017: $295.68 million). Of this:

o Cess income increased by 73% to $494.71 million relative to $285.78 million the previous year.
o Fee income grew by 32% to $808.15 million to close the year, compared to $611.56 million in 2017.
o E-campus showed a decline of 5% to $15.06 million, relative to $15.92 million in 2017.
o Other operating income dipped 6% during the period to total $72.93 million compared to $77.89 million in the previous year.

Total expenses for the year increased by $149.22 million or 22% moving from $668.22 million in 2017 to $817.44 million in 2018. Of this:

o Staff cost increased 22% to total $353.07 million for the period (2017: $289.49 million).
o Depreciation and amortization totalled $50.38 million for the year relative to $37.39 million in 2017.
o Professional fees amounted to $55.48 million (2017: $52.47 million) a 6% increase year over year.
o Property expenses climbed $16.95 million to $136.29 million (2017: $119.34 million) during the year under review.
o Other operating expenses grew by 11% to $53.52 million from $48.31 million the previous year.
o Advertising and promotion was down by 3% from $61.19 million in 2017 to $59.33 million.
o Securities commission fees posted an 84% uptick year over year to close at $74.36 million (2017: $40.39 million).

Investment income grew to $19.09 million (2017: $16.32 million) for the year end, while finance cost for the year amounted to nil compared to $1.20 million in 2017.

Profit before tax totalled $592.50 million compared to $338.05 million the year prior. For the fourth quarter profit before tax amounted to $157.43 million, a 40% increase when compared to $112.56 million reported last year. Tax charges for the year totalled $179.44 million (2017: $117.38 million).

Consequently, JSE reported a net profit of $413.06 million compared to a profit of $220.67 million in the prior year, an 87% increase year over year. Net profit for the quarter advanced by 68% to $119.78 million (2017: $71.49 million).

Total comprehensive income for the year amounted to $410.10 million relative to $242.80 million in 2017.

Earnings per share (EPS) for the quarter totalled $0.17 compared to $0.10 in 2017. EPS for the year ended December 31, 2018 was $0.59 compared to $0.31 in 2017. The numbers of shares used in the calculations are 701,250,000.00 units. JSE stock price closed the trading period on February 28, 2018 at $17.86.

Balance Sheet at a glance:-

As at December 31, 2018, assets totalled $1.51 billion, a 20% increase when compared with its balance of $1.25 billion a year prior. The increase was due to a 43% increase in Property, Plant & Equipment’ from $342.82 million to $491.22 million. ‘Cash and Cash Equivalents’ and ‘Trade Receivables’ also contributed to the increase to close at $240.94 (2017: $143.16 million) and $247.77 million (2017: $170.43 million).

Shareholders’ Equity amounted to $1.13 billion (2017: $948.78 million), resulting in a book value per share of $1.60 (2016: $1.35).

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