Marlene J Street Forrest Managing Director The Jamaica Stock Exchange Group (JSEG) has released the following consolidated unaudited financial statements for quarter ended September 30, 2022
Third Quarter Performance
The Jamaica Stock Exchange Group (JSEG) recorded a Net Profit after Tax of $137.8m, which was 26.4% below the corresponding quarter in 2021.
Total Income decreased by 6.8% while Total Expenses increased by 8.5% compared to the corresponding quarter in 2021.
The Return on Equity was 7% as against 10.9% in 2021, representing a 27.5% decrease.
Income
Total Income for the JSEG of $579.2m, represents a $42.2m (6.8%) decrease over the corresponding quarter of 2021. Fee Income and Other Operating Income increased by $45.3m (12.3%) and $3.5m (32.4%) over the comparable period. However, Cess Income decreased by $93.5m or 40.2% over the comparable period.
Expenses
Total Expenses of $382.1m increased by $29.9m (8.5%) 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 $9.4m (5.6%). This was due to a 6% increase in salaries.
Property Expenses increased by $7.9m (11.6%) when compared to the comparative period in 2021. This is due to increases in maintenance and utilities.
Advertising and Promotion was above 2021 comparatives by $13.5m (120.5%) due to the increase in promotional activities which is aligned to revenue growth.
Net Impairment Losses on Financial Assets decreased by $6.8m (1644.1%) 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 $137.8m represents a decrease of $49.5m (26.4%) when compared to the profit of $187.3m for the corresponding period in 2021. However, the nine months ending September 30,2021 reflects an increase of $39.9m (10.6%) moving from $$377.7m to $417.6m.
The increase in Net Profit reflects the improvement in Total Income for the nine months ended September 2022, primarily driven by the higher trading values in the market.
Financial Position
Total JSEG Assets as at September 30, 2022, of $2,406.9m, reflected an increase of $245.9m (14.3%), when compared to holdings as at September 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 $1,976.2m as at September 30, 2022, reflects an increase of $256.6m (14.9%) and $84.4m (4.5%) over the comparable positions at the end of September 30, 2021, and December 31, 2021, respectively. Revenue Reserves reflect an increase of $112.5m (9.5%) over the position as at December 31,2021, which is net of $305m paid to shareholders as dividend and the nine months profit.
Market Developments & Outlook
The Third Quarter results has been positive though slightly less than expected due to a decrease in Total income. However, the outlook for the rest of the year is for improved performance, as investors and companies continue to demonstrate confidence in the economy as the pandemic ends. We also believe that despite the geo-political unrest which undoubtedly has had some impact on the economy, overall, we believe that 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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