The JSE delivered a robust performance for the year ended December 31, 2021, despite a challenging macroeconomic and trading environment, group CEO Dr Leila Fourie says.
“Our resilience while navigating an unfamiliar route through the pandemic has confirmed the value of the investments we have made in our technology platforms over an extended period.
“I am pleased that the JSE has been able to deliver a high level of service to its clients and the broader public while managing extreme market events and uncertainty,” she comments.
Earnings before interest, taxes, depreciation and amortisation of R1.06-billion were flat year-on-year.
This was attributable to disciplined cost management, a positive contribution from the JSE Investor Services (JIS) and a rebound in value traded in the second half of the financial year.
Operating revenue grew by 3% year-on-year to R2.52-billion.
Operating expenditure was noted as well contained, but 4% higher year-on-year at R1.78-billion, with the JIS acquisition fully consolidated.
A record low interest rate environment resulted in finance income declining by 27% year-on-year to R146-million, which directly impacted net profit after tax, which was down 7% year-on-year to R722-million.
Earnings a share and headline earnings a share declined by 7% and 6% year-on-year to 874.1c and 878.9c, respectively.
Strong cash generated from operations has enabled the board to declare an ordinary dividend of 754c apiece for 2021, an increase of 4% year-on-year and in line with the JSE's progressive dividend policy.
This corresponds with an ordinary dividend pay-out of 92% of distributable profits in 2021.
It is supplemented by the declaration of a special dividend of 100c apiece.
In compliance with the provisions of the Financial Markets Act, 2012, and the risk appetite set by the board, the JSE Group calculates and holds regulatory capital in the form of equity capital.
This amounts to R1.13-billion in total for JSE Limited and for JSE Clear, of which R789-million is held in the form of restricted cash and cash equivalents.
The group notes that it, therefore, remains well capitalised.
Moreover, it highlights that it maintains a robust balance sheet and cash reserves of R2.4-billion as at period-end.