Johannesburg, 8 March 2023: The Johannesburg Stock Exchange (JSE) today announced its annual financial results for the year ended 31 December 2022, posting R749 million net profit after tax (NPAT) – a 4% year-on-year (YoY) increase. Headline earnings per share (HEPS) also increased by 4% to 917.7 cents (2021: 878.9 cents) per share, and earnings before interest, tax and depreciation (EBITDA) increased by 1% to R1.07 billion (2021: R1.06 bn).
“The JSE’s solid performance reflects the quality of our earnings and the resilience of our operating platforms within a challenging trading environment. I am pleased to report year-on-year growth of 4% in headline earnings per share, and a strong Return on Equity of 18%, well within our long-term target range,” says Leila Fourie, JSE Group CEO.
The bourse recorded revenue growth across its business segments with a growing contribution from non-trading revenue in line with its diversification strategy. Operating revenue grew 5% to R2.7 billion, with an 11% increase in revenue from Information Services (IS) and a 28% increase in revenue from JSE Investor Services (JIS). This performance is underpinned by robust operational processes and 99.9% uptime across our markets.
“Our strategy to diversify revenue continues to gain traction with non-trading revenue up 13% year-on-year - from R590 million to R668 million in 2022- to account for 25% of total operating revenue,” continued Fourie.
Rising interest rates and growth in margin deposits supported higher net finance income which increased 40% to R203 million as compared to R146 million in 2021.
“Our core business model, underpinned by quality earnings and strong cash generation, continues to provide a solid foundation for growth. At the same time, we saw our new business lines contribute positively to the Group’s financial results. Our business model continues to evolve to meet the changing needs of market participants and our growth areas, Information Services, JIS and JPP, continue to deliver operationally and strategically,” said Fourie.
The business remains highly cash generative, reporting R978 million (2021: R917m) in cash from operations, ending the year on a cash balance of R2.2 billion (2021: R2.4bn). The Board was able to declare an ordinary dividend of 769 cents per share, an increase of 2% YoY, resulting in a distribution to shareholders of R668 million.
The following highlights revenue performance per segment:
- Primary Market: +3% to R158 million (2021: R153 million)
- Equity Trading: -1% to R512 million (2021: R517 million)
- Equity Derivatives Trading: +9% to R163 million (2021: R150 million)
- Currency Derivatives Trading: R41 million (2021: R41 million)
- Bond and Interest Rate Trading: +16% to R82 million (2021: R71 million)
- Commodity Derivatives Trading: +6% to R103 million (2021: R97 million)
- Issuer services: +19% to R7 million (2021: R6 million)
- +11% to R388 million (2021: R350 million)
JSE Investor Services:
- +28% to R159 million (2021: R125 million)
- Clearing and Settlement revenue: +3% to R438 million (2021: R423 million)
- Back-office services (BDA) revenue: R351 million (2021: R351 million)
- Funds under management revenue: +18% to R95 million (2021: R81 million)
- Other income: -8% to R54 million (2021: R59 million)
The JSE made significant leaps towards its long-term strategic goals in 2022. The JSE’s financial results reflect a growing track record of delivery and strong commitment to executing on strategy The exchange continues to be a centre of innovation for financial markets on the continent and within emerging markets. It made significant progress in cloud-based data initiatives and delivered JSE Private Placements, a fintech-powered private markets platform. The JSE also launched Trade Explorer, a digital analytics platform for Equity Market brokers, which is a global first for a stock exchange. Recent updates to the JSE’s Listings Requirements continue to ensure an effective and appropriate balance of regulation.
In 2023, the bourse will focus on investing in the core business to sustain operations and advance its growth strategy for Information Services. It will continue to accelerate growth in new business lines and effectively manage its cost base with discipline.
“Our success to date in delivering on our promises and in improving the quality of our earnings is a positive indicator for the future of the exchange. Our long-term strategic objectives are to grow and diversify revenue streams, invest in operational resilience, and further entrench sustainability in the business,” concluded Fourie.
ABOUT THE JSE
The Johannesburg Stock Exchange (JSE) has a well-established history of operating as a marketplace for trading financial products. It is a pioneering, globally connected exchange group that enables inclusive economic growth through trusted, world-class, socially responsible products, and services for the investor of the future. It offers secure and efficient primary and secondary capital markets across a diverse range of securities, spanning equities, derivatives, and debt markets. It prides itself as being the market of choice for local and international investors looking to gain exposure to leading capital markets on the African continent.
The JSE is currently ranked in the Top 20 largest stock exchanges in the world by market capitalisation and is the largest stock exchange in Africa, having been in operation for 135 years.
As a leading global exchange, the JSE co-creates unlocks value and makes real connections happen.
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