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)
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.