The JSE produced “strong” results for the year ended December 31, 2023, with growth of 12.2% in headline earnings per share (HEPS) and return on equity of 19.4% in line with long-term targets, CEO Leila Fourie reports.

This strong performance has enabled the board to declare a dividend of 784c apiece for the full-year, she adds.

“We continue to invest in defending our core trading activity while building new services across asset classes and in private capital raising, Information Services and JSE Investor Services, which enabled non-trading income to increase to 36.8% (2022: 34.6%) of operating income in line with our long-term strategy.

“We delivered an excellent operating performance, with system uptime of 99.89%. We launched new partnerships to enable us to rapidly innovate in data services, private markets, carbon trading and a modernisation of our broker-dealer accounting (BDA) system, which will ensure the JSE maintains its leading position among emerging market exchange operators,” Fourie points out.

As mentioned, HEPS increased by 12.2% year-on-year to 1 029.8c, compared with 917.7c in the previous year.

Net profit after tax increased by 11% to R831-million, compared with R749-million in the previous year.

The group’s revenue growth was supported by the diversified business segments and asset classes across the business, the JSE notes.

Operating income grew to R2.9-billion, supported by a 15.6% increase in revenue from Information Services and a 20.2% increase in revenue from JSE Investor Services.

The JSE increased the proportion of its revenue derived from non-trading activity in line with the group’s strategy (non-trading income of R954-million).

Total operating expenditure increased by 6.7% year-year to R2-billion, delivering balanced operating leverage for the group.

Earnings before interest, taxes and depreciation of R1.1-billion decreased by 2.3% year-on-year.

Higher interest rates supported growth in net finance income, which increased 66.4% year-on-year to R169-million (from R101-million).

Cash generated from operations of R1.1-billion grew by 13.6% and has enabled the board to declare a dividend of 784c apiece, as alluded to.

This represents an increase of 2% in the nominal value of the ordinary dividend and a dividend payout ratio of 82.4%.

Capital expenditure of R155-million was focused on protecting the core business and growing new business lines.

The group says it maintains a robust balance sheet, with cash of R2.3-billion as at December 31 (excluding bond investments of R256-million).

Ring-fenced and non-distributable cash and bonds (regulatory capital and investor protection funds) amounted to R1.47-billion.

The group calculates and holds regulatory capital which amounted to R987.7-million in total for JSE Limited and JSE Clear.

The group says it continues to maintain its solvency and liquidity position.