JSE delivers resilient results despite macroeconomic challenges in 2018

The JSE reports growth in group earnings and revenue for the financial year ending 31 December 2018.

The Johannesburg Stock Exchange delivered the results for its annual financial year ending 31 December 2018. The bourse stated that 2018 was characterised by inter-quarter disparity in market activity which impacted most of its asset classes.

Despite macroeconomic challenges both globally and locally, the JSE reported group earnings growth of 8 percent. This follows a 1 percent increase in revenue and a 1 percent contraction in operating costs.

The report stated that the JSE continued its focused control of costs during the past year. Operating costs decreased for the second consecutive year with personnel cost 7 percent lower due to reduced headcount. Cost optimisation initiatives relating to software licenses, hardware maintenance and support resulted in technology costs reducing by 5 percent.

General expenses increased 9% percent as corporate resources were prioritised towards strengthening operational resilience and revenue enhancing initiatives.

The JSE board also declared an ordinary and special dividend of 655 cents per share and 185 cents per share respectively for the year ended 31 December 2018. They were able to do this because the quantum of the capital requirements of the Financial Markets Act have been established and are in effect, so surplus cash can be released. 

JSE CEO Nicky Netwon-King stated:

"Operating as a marketplace for the trading of financial products for over a hundred years has uniquely positioned the JSE as a critical product and service provider to South Africa's financial market. We recognise the responsibility this brings to ensure that we build better markets for our stakeholders. As we tackle 2019, we are very clear on our tactical and strategic choices for this year. We look forward to the delivery of our Integrated Trading and Clearing (ITaC) platform in April 2019 and are most grateful to our clients for working with us to this end. We also now have the opportunity to lift our heads and direct more of our corporate resources to new and innovative initiatives that both strengthen our operating platform to deliver better to our clients and allow us to grow across the value chain."