The JSE’s solid performance for the year ended December 31, reflects the quality of its earnings and the resilience of its operating platforms within a challenging trading environment, group CEO Leila Fourie says.

“I am pleased to report year-on-year growth of 4% in headline earnings a share and a strong return on equity of 18%, well within our long-term target range. Our strategy to diversify revenue continues to gain traction, with non-trading revenue up 13% year-on-year to 25% of total operating revenue.

“This performance is underpinned by robust operational processes and 99.9% uptime across our markets. The business remains strongly cash generative and this has enabled the board to declare an ordinary dividend of 769c a share for 2022, resulting in a distribution to shareholders of R668-million.

“These results demonstrate the value of our investment strategy and provide momentum for future growth,” Fourie outlines.

Net profit after tax (NPAT) increased by 4% year-on-year to R749-million, with headline earnings per share (HEPS) up 4% year-on-year to 917.7c.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) of R1.07-billion increased by 1% year-on-year.

The group recorded revenue growth across its business segments. Operating revenue grew by 5% to R2.7-billion, with an 11% increase in revenue from Information Services and a 28% increase in revenue from JSE Investor Services (JIS).

The JSE further increased the proportion of its revenue derived from non-trading activity in line with its strategic intent (non-trading revenue grew by 13% from R590-million to R668-million in 2022).

Total operating expenditure increased by 7.5% year-on-year to R1.9-billion. Other operating expenditure growth includes an increase in administration fees relating to an increase in JIS revenue-generating activities and an increase in electricity and building utilities (for example, diesel).

Personnel costs reflect yearly salary increases and the annualised impact of headcount relating to new acquisitions.

Rising interest rates and growth in margin deposits have supported higher net finance income, which increased 40% year-on-year to R203-million.

Continued strong cash generated from operations of R978-million has enabled the board to declare an ordinary dividend of 769c apiece for 2022, as alluded to, an increase of 2% year-on-year.

The JSE will maintain a pay-out ratio between 67% to 100% of distributable earnings in respect of the yearly ordinary dividend.

Capital expenditure of R127-million was focused on operational resilience and growth initiatives.

The group says it maintains a robust balance sheet and cash of R2.2-billion at period end.

Ringfenced and non-distributable cash (regulatory capital and investor protection) amounts to R1.2-billion. Of the remaining R1-billion, R668-million will be distributed as dividends.