The JSE has reported year-on-year growth of 10% in its net profit after tax (NPAT) for the six months ended June 30 to R493-million.

The stock exchange delivered solid growth in an uncertain environment as its largest market experienced lower trading activity amid continued macroeconomic volatility, group CEO Leila Fourie says.

“The group’s performance was supported by our focus on diversifying earnings through new business lines and growth in net finance income. The contribution of non-trading revenue now represents 36% of operating revenue, with double-digit growth in Information Services and JSE Investor Services (JIS).

“We also maintained operational resilience with outstanding uptime across our markets of 99.98%, while the business continues to be cash generative alongside a robust balance sheet,” Fourie outlines.

She says the group remains focused on continuing to deliver its strategic objectives of protecting the core while growing the non-trading segment further to limit impact from fluctuations in trading activity.

Headline earnings a share increased by 12% year-on-year to 607.2c.

Earnings before interest, taxes, depreciation and amortisation of R604-million decreased by 4% relative to a sound performance in the prior year.

Total revenue was up 5% to R1.45-billion, supported by double-digit growth in Information Services and JIS revenue.

The JSE also saw an uptick in trading activity across its derivatives markets.

The JSE increased the proportion of its income derived from non-trading activity by two percentage points to 36%.

Total operating expenditure increased by 8% to R949-million. Personnel-related costs reflect yearly inflationary salary increases and an increase in the Long-Term Incentive Scheme owing to prior year forfeitures.

Depreciation and amortisation decreased owing to a change in estimated useful life of capitalised software and systems.

Regulatory, compliance and other fees were higher owing to an increase in regulatory-related costs and new costs associated with the Independent Clearing House (effective from April 1).

General operating expenditure included the impact of operating environment pressures and strategic initiatives.

Rising interest rates supported higher net finance income which increased 53% to R135-million.

The group continues to be cash generative, with net cash from operations of R488-million.

Capital expenditure (capex) of R33-million remains focused on protecting the core business, as well as growing new business lines, with an expected pickup in capex activity in the second half of the year.

The group maintains a robust balance sheet and cash of R1.9-billion at period-end (excluding bond investment of R195-million).

Ring-fenced and nondistributable cash and bonds (regulatory capital and investor protection) amounts to R1.5-billion.

The JSE was able to make progress on its strategic and operational priorities in the first half. 

Its long-term strategic objectives are to grow and diversify revenue streams, invest in operational resilience and further entrench sustainability in the business.