JSE reports soars 86% in nine months total comprehensive income

Date: November 14, 2018

Jamaica Stock Exchange Limited (JSE), For the Nine months ended September 30, 2018 recorded total revenue of $1.0 billion, a 45% increase when compared to the $695.47 million booked the prior year. While total revenue for the quarter amounted to $339.53 million (2017: $217.82 million). Of the nine months:

o Cess income rose by 91% to $340.17 million relative to $178.13 million the previous year.
o Fee income grew by 36% to $601.78 million to close the period, compared to 2017’s $443.06 million .
o E-campus fell to $8.83 million, relative to $12.09 million in 2017.
o Other operating income dipped 12% during the period to total $54.68 million compared to $62.20 million in last year.

Total expenses for the period increased by $110.11 million or 23% moving from $487.72 million in 2017 to $597.83 million in 2017. For the third quarter Total expenses amounted to $199.81 million, a 27% rise when compared to $157.90 million in 2017. Of this:

o Staff cost increased 15% to total $263.08 million for the period (2017: $228 million). The increase was, “due to salaries associated with new staff hires required to support the expansion of current business.
o Depreciation and amortization totaled $38.02 million for the period relative to $25.68 million in 2017, a 48% uptick.
o Additionally, professional fees amounted to $49.88 million (2017: $38.80 million) a 29% increase and “was as a result of consultant services aligned to business expansion.”
o Property expenses climbed $14.67 million to $99.31 million during the period under review.
o Other operating expenses grew by 17% to $38.92 million from $33.29 million the previous year.
o Advertising and promotion marginally went up from $41.46 million to $41.47 million.
o Securities commission fees posted a 96% decline for the period to close at $51.91 million (2017: $26.43 million) which is in correlation to Cess Income, where the fees payable to the FSC are calculated based on the amount of the Cess Income.”
o Bad debt of $1.90 million (2017: nil) was recorded for the period.

Investment income rose by 50% to $26.67 million versus $17.74 million in 2017, while revaluation gain on investment in securities amounted to $776,000.

Profit before tax totaled $435.07 million compared to $225.49 million the year prior.

Tax charges for the period totaled $.141.79 million (2017: $76.31 million).

As such, JSE reported a net profit of $293.28 million compared to a profit of $149.18 million in the prior year, a 97% increase. While net profit for the quarter amounted to $102.21 million (2016: $47.43 million). JSE noted that this was due to the, “increase in the volume of business in relation to the trading of securities has resulted in Cess Income being a major contributor.”

Total comprehensive income was for the period amounted to $289.48 million relative to $155.78 million in 2017, while for the quarter it amounted to $106.46 million (2017: $47.47 million).

Earnings per share for the quarter totaled $0.15 compared to $0.07 in 2017, while for the nine months ended September 30, 2017 EPS was $0.42 compared to $0.21 in 2017. The twelve months trailing EPS is $0.52. The numbers of shares used in the calculations are 701,250,000.00 units. JSE last traded on November 14 ,2018 at $10.16.

JSE added, “The Third Quarter performance was favorable and the outlook for the remainder of the year is positive, as it is expected there will be more companies listing their securities on the Exchange and the secondary market activities will remain buoyant. The Group will continue in the medium to long term to pursue a strategic path of growth through the promotion of new and existing markets, new products development and the continuous improvement of service delivery to the Group’s customer and other stakeholders.”

Balance Sheet at a glance:-

As at September 30, 2018, assets totaled $1.32 billion, a 10% increase when compared with its balance of $1.20 billion a year prior. The increase was due to a 53% increase in Property, Plant & Equipment from $275.46 million to $421.45 million.

Shareholders’ Equity amounted to $1.02 billion (2016: $938.90 million), resulting in a book value per share of $1.45 (2016: $1.34).

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