The JSE reports 22% increase in year end Net Profit

March 3, 2022

Jamaica Stock Exchange Limited (JSE), for the year ended December 31, 2021 recorded Total Income of $1.93 billion, a 13% increase when compared to the $1.71 billion reported on December 31, 2020. Of this:

    • Cess Income grew by 24% to $469.47 million relative to $380.02 million in 2020.
    • Fee Income rose by 10% to $1.34 billion compared to the $1.22 billion in 2020.
    • Earnings from their E-campus increased to $34.96 million, relative to $31.65 million in 2020.
    • Other operating income declined by 1% during the period to total $83.52 million compared to $84.61 million last year.
    • Total Income for the quarter amounted to $454.33 million (2020: $451.31 million).

Total expenses for the period increased by 9% moving from $1.14 billion in 2020 to $1.24 billion in 2021. Of this:

    • Staff costs increased by 19% to $566.30 million for the period relative to $477.32 million in 2020.
    • Professional Fees increased by 12% to $84.80 million (2020: $75.50 million),
    • Property expenses climbed 17% from $229.77 million for the year end ended December 31, 2020, to $268.99 million during the period under review.
    • Other operating expenses fell 13% to $62.76 million from $72.01 million the previous year.
    • Advertising and promotion decreased from $90.75 million in 2020 to $78.85 million in 2021.
    • Securities commission fees increased by 18% for the period to close at $68.24 million (2020: $57.66 million).
    • E-campus expenses amounted to $35.77 million (2020: $29.22 million).

For the quarter, Total Expenses amounted to $293.23 million, a 2% decline when compared to $298.07 million in 2020.

Investment income grew 11% to $48.78 million versus $43.97 million in 2020.

Profit before tax was $740.98 million compared to $618.47 million the year prior. While for the quarter, profit before tax closed at $179.86 million (2020: $163.75 million).

Tax Charges for the year ended December 31, 2021 amounted to $243.66 million (2020: $211.53 million).

Despite the higher Tax Charge, JSE reported a net profit of $497.31 million compared to a profit of $406.94 million reported in prior year, a 22% increase. Net profit for the quarter amounted to $119.57 million (2020: $120.66 million).

Total comprehensive income for the year grew by 28% to $548.84 million relative to $428.76 million in 2020. The growth was mainly attributable to gains via Revaluation Surplus on Property, Plant & Equipment which totaled $111.30 million (2020: $59.99 million) as well as gains via Revaluation Surplus on Land which amounted to $27.10 million (2020: $13.50 million).

Earnings per share as at December 31, 2021 totaled $0.71 compared to $0.58 in 2020. The numbers of shares used in the calculations are 701,250,000.00 units. JSE last traded on March 1, 2021 at $16.91 with a corresponding P/E of 23.84 times.

Balance Sheet at a glance:-

As at December 31, 2021, assets totaled $2.23 billion, a 19% increase when compared with its balance of $1.87 billion a year prior. The increase was due to a 63% increase in the value of ‘Government Securities Purchased Under Resales Agreements’ from $300.14 million as at December 31, 2020 to $487.77 million. An increased carrying value of Property, Plant & Equipment also contributed to the upward movement closing at $869.98 million compared to $679.52 million in 2020.

Shareholders’ Equity amounted to $1.89 billion (2020: $1.53 billion), resulting in a book value per share of $2.70 (2020: $2.18)


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