Outlook for the year is for improved performance

Durrant Pate/Contributor

The Jamaica Stock Exchange (JSE) recorded a net profit J$143.8 million, which was 23.6 per cent above the J$116.3 million made during the corresponding quarter in 2021.

Total income for the period under review amounted to J$570.9 million, which is J$129.4 million or 29.3 per cent increase over the corresponding quarter of 2021. The increase can be attributed to improved market conditions and market activities, which resulted in the significant improvement in cess and fee income by J$56.2 million (67.5%) and J$78 million (23.2%) respectively over the comparable period.

Total Income during the quarter was primarily driven by the higher trading values in the market. Total expenses increased to J$355.2 million, which is a jump of J$70.5 million or 24.8 per cent compared to the corresponding quarter in 2021.

The main expenditure contributing to the increase are as staff cost was above 2021 comparatives by $29.7 million or 21.9 per cent.

Salary increases from reclassification exercise

This is mainly due to a six per cent increase in salaries as well as a reclassification exercise resulting in the upward movement in salaries of some positions. Securities Commission Fee was above 2021 comparatives by $7.4 million (58.7%), reflecting the direct correlation between cess revenue and fees paid.

Advertising and Promotion was above 2021 comparatives by J$12 million (133.3%), due to the increase in promotional activities which is aligned to revenue growth. The return on equity was 7.4 per cent as against 7.2 per cent in 2021, representing a 2.8 per cent increase.

Net impairment losses on financial assets declined by J$4.1 million or 105.1 per cent for the second quarter over the comparative period in 2021. This decrease represents a reduction in the Expected Credit Loss due to an increase in the collection of long outstanding receivables.

Total assets as at June 30, 2022 totalled J$2.45 billion, reflected an increase of J$384.8 million (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 J$1.95 billion as at June 30, 2022, reflects an increase of J$340.5 million (21.1%) and J$61.1 million (3.2%) over the comparable positions in 2021, and December 31, 2021, respectively. Revenue Reserves reflect an increase of J$86.9 million (7.4%) over the position as at December profit.

Positive outlook for remainder of 2022

The management of the equities regulatory company says, “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”.

According to the management, “we continue to implement our enterprise risk mitigating measures as well as those aimed at minimising health and safety risks to employees and other stakeholders. The JSE remains resolute in its commitment to maximise stakeholders and the country at large”.

In concluding, the management reports that it “plans to 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”.