Africa’s largest stock exchange operator, the JSE, has reported a strong increase in net profit after tax for the year to end-December, driven by revenue growth across most of its asset classes.
The company announced a 10.4% rise in after-tax profit to R918m, supported by diversified revenue streams, disciplined cost management and sustained positive market sentiment.
Operating income grew 5.2% to R3.1bn, with notable contributions from key business segments, including investor service, primary markets, commodity derivatives and bonds and financial derivatives.
Nontrading income rose by 7.5% to R1.17bn, accounting for 37.8% of total operating income, up from 36.8% in 2023.
Revenue for the year increased 5.6% to R2.97bn. Headline earnings per share (HEPS) increased 9.6% to 1,128.6c. The company’s return on equity (ROE) improved to 20.2%, up from 19.4% in the previous year.
CEO Leila Fourie said the company’s strategic focus on diversification and operational efficiency was the key driver of its performance.
The company’s board declared an ordinary dividend of 828c per share for the year, a 5.6% increase from the previous year. This translates into a total distribution of R715m to shareholders and reflects a payout ratio of 78%, within the company’s dividend policy range.
To reduce costs for smaller players the JSE recently divided the main board into prime and general segments, allowing for the removal of some red tape.
“We saw 22 companies moving to the general board in 2024,” Fourie said. “This adjustment is part of a broader strategy to reduce delistings and create a more accommodating environment for businesses.”
She said the JSE had also experienced an uptick in new listings, with eight companies joining the exchange in 2024.
While addressing concerns about delistings, she said: “We have seen a reduction in the number of delistings, but listings remain very much a function of investor sentiment and the macroeconomic backdrop,” adding that improved political and economic sentiment in SA had contributed to the positive trend.
Secondary capital raised on the JSE resulted in an increase of 150%, reaching R103bn in 2024 compared with R41.4bn previously.
Talking about the global political landscape, Fourie said the JSE was not immune to the effects of the global political landscape. “All markets are affected by a lack of certainty and a heightened political environment. However, SA has performed relatively well compared with its emerging market peers.”
The company repurchased 522,109 shares during the year under review, representing 0.6% of its issued share capital and generating a return on investment of 23.8%.
The JSE maintained high levels of operational reliability throughout the year, achieving a system uptime of 99.97%.
The company’s net cash from operations totalled R1.09bn from R1.11bn in the previous year. Its balance sheet remains robust with cash reserves of R2.8bn, including R601m in bond investments.
Capital expenditure for the year amounted to R147m.
Looking ahead, the company said it continued to invest in technology and expand its product offerings across asset classes and geographies.
Update: March 3 2025
This story has been updated with more information.
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