Marlene J Street Forrest Managing Director The Jamaica Stock Exchange Group has released the following statement on the company’s Second Quarter Performance for the period ending June 30, 2022
Second Quarter Performance
The Jamaica Stock Exchange Group (JSEG) recorded a Net Profit after Tax of $143.8m, which was 23.6% above the corresponding quarter in 2021.
Total Expenses increased by 24.8% compared to the corresponding quarter in 2021. The Return on Equity was 7.4% as against 7.2% in 2021, representing a 2.8% increase.
Income
Total Income for the JSEG of $570.9m, represents a $129.4m (29.3%) increase over the corresponding quarter of 2021. The increase can be attributed to improved market conditions and market activities which has resulted in the significant improvement in Cess and Fee Income by $56.2m (67.5%) and $78m (23.2%) respectively over the comparable period.
Expenses
Total Expenses of $355.2m increased by $70.5m (24.8%) when compared to the corresponding quarter in 2021.
The main expenditure contributing to the increase are as follows:
• Staff Cost was above 2021 comparatives by $29.7m (21.9%). This was mainly due to a 6% increase in salaries as well as a reclassification exercise resulting in the upward movement in salaries of some positions.
• Securities Commission Fees was above 2021 comparatives by $7.4m (58.7%), reflecting the direct correlation between Cess revenue and fees paid.
• Advertising and Promotion was above 2021 comparatives by $12m (133.3%) due to the increase in promotional activities which is aligned to revenue growth.
• Net Impairment Losses on Financial Assets decreased by $4.1m (105.1%) over prior year comparative. This decrease represents a reduction in the Expected Credit Loss due to an increase in the collection of long outstanding receivables.
Net Profit
Net Profit after Tax of $143.8m represents an increase of $27.5m (23.6%) when compared to the profit of $116.3m for the corresponding period in 2021. The increase in Net Profit reflects the improvement in Total Income during the quarter, primarily driven by the higher trading values in the market.
Financial Position
Total JSEG Assets as at June 30, 2022, of $2,455.3m, reflected an increase of $384.8m (18.6%), when compared to holdings as at June 30, 2021. This was due primarily to an increase in Property, Plant and Equipment, Intangible Assets and Government Securities purchased under resale agreement.
Total Equity of $1,952.9m as at June 30, 2022, reflects an increase of $340.5m (21.1%) and $61.1m (3.2%) over the comparable positions at the end of June 30, 2021, and December 31, 2021, respectively. Revenue Reserves reflect an increase of $86.9m (7.4%) over the position as at December profit.
Market Developments & Outlook
The Second Quarter results has been good and the outlook for the year is for improved performance, as investors and companies continue to demonstrate confidence in the economy despite the lingering threats and impact of COVID 19 and other market uncertainties.
We also believe that despite the geo-political unrest which will undoubtedly have some impact on the economy, overall, we do not expect that this will significantly affect income due to our successful diversification strategies.
We continue to implement our enterprise risk mitigating measures as well as those aimed at minimizing health and safety risks to employees and other stakeholders.
The JSEG remains resolute in its commitment to maximize stakeholders and the country at large.
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 s customers and other stakeholders.
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