Local stock exchange, the JSE, reported an increase in net profit after tax of 10.4% to R918-million for its 2024 financial year, with a return on equity of 20.2%, up from 19.4% in the prior year.

The notable earnings growth and robust performance for the bourse was supported by business resilience and stability, as well as increased revenue diversification through its non-trading business segments, it said.

The JSE’s share price outperformed headline indices, delivering 30% year-on-year growth during 2024. The JSE continues to be cash-generative with net cash generated from operations of R1.09-billion, which enabled the board to declare an ordinary dividend of 828c a share for 2024, up from 784c in 2023, generating a total shareholder return of 40% for the year.

“We recorded revenue growth across most of our asset classes off the back of sustained positive market sentiment following the formation of the Government of National Unity (GNU).

“Our strategy to build a diversified and resilient exchange group resulted in non-trading income increasing to R1.17-billion and it now contributes 37.8% of operating income, up from 36.8% in 2023,” said JSE Group CEO Leila Fourie.

In its Capital Markets segment, it saw a 15.6% increase to R187-million revenue from its primary market, a 0.2% increase to R444-million from equity trading, a 10% increase to R47-million revenue from colocation fees.

However, equity derivatives trading contributed 1.9% less to revenue at R115-million, although revenue generated by bond and financial derivatives increased by 6.6% to R139-million and revenue from commodity derivatives trading increased by 11.6% to R89-million.

The JSE Investor Services (JIS) revenue was up 20.2% to R229-million, while JSE Clear increased the revenue it contributed by 5.5% to R118-million. The JSE's Information Services division increased revenue by 1.1% to R454-million.

In its Post-Trade Services segment, revenue from clearing and settlement decreased by 0.5% to R409-million, while back-office services revenue increased by 12.7% to R415-million, and revenue from funds under management declined by 8.2% to R95-million.

“I am particularly pleased with the structural reductions in our cost base, which helped restrain total expenditure growth to 6.2%. This performance was underpinned by robust and resilient systems and operational processes and uptime of 99.97% across all our systems, which is above our long-term average,” said Fourie.

Further, the JSE has a healthy cash generation and robust balance sheet. At the end of December, the cash balance stood at R2.8-billion, including bond investments, with net cash generated from operations at R1.09-billion, down from R1.11-billion in 2023.

“The group is committed to its growth and diversification strategy. These solid results demonstrate the value of our investments across the value-chain, in our technology and our people, and provide further momentum for future growth,” she added.

Its total income increased by 6.5% to R3.167-billion, which was supported by the diversified asset classes in the business.

The diversification of revenues at the bourse protected operating income from a year of muted equity market activity, with most business segments reporting growth in revenue for the financial period.

Additionally, the JSE is in the process of developing a central clearing solution for the bond electronic trading platform.

Further, in line with its technology enablement journey, the bourse has made progress in the modernisation of its Broker Dealer Accounting system and further launched new technology services such as compute and analytics capabilities service Colo 2.0, Fourie said.

“Our future prospects and long-term strategic objectives are underpinned by operational resilience, diversified revenue streams and innovative technology advances. Building a future-fit and diversified financial market infrastructure backed by innovation and modern infrastructure is the JSE’s apex focal point.”