Johannesburg, 2 August 2018 –Strong operating revenue performance (up 7%) following increased activity in all the JSE market segments, the continued focus on cost control and a one-off tax credit of R31m, resulted in the JSE’s earnings after tax in H1 2018 increasing by 34% to R561m (H1 2017: R419m).
The following contributions to revenue are noteworthy:
· Primary Market revenue remains relatively flat at R82 million as a result of a decline inadditional capital raised. There were ten new Equity Market listings in the first half
(H1 2017: 8);
- · Cash Equities Market revenue rose by 12% to R277 million owing to the 11% increase
in billable value traded and the increase in the effective price as a result of the trade
sizes executed by members;
- · Equity Derivatives Market revenue decreased by 10% to R75 million. Value traded
was up by 4% however, this was offset by a greater percentage of trades executed
at lower price ranges;
- · Currency Derivatives Market revenue decreased by 2% to R23 million. Contracts
traded increased by 7%. However, the growth was offset by a decline in the
effective rate as a result of the trade sizes executed by members;
- · Commodity Derivatives Market revenue increased by 18% to R37 million owing
to an 11% increase in the number of contracts traded as well as annual price increases.
Spread trading activity picked up in the first half of 2018 on the back of large
carry-over stock from the previous season;
- · Interest Rate Market revenue rose by 11% to R23 million owing to a 13% increase in
bond nominal value traded;
- · Interest Rate Derivatives Market revenue grew by 14% to R3 million owing to an
increase in the number of contracts traded (up 26%);
- · Equity clearing and settlement revenue increased by 13% to R211 million following
the 11% increase in billable value traded in the Equity Market;
- · BDA revenue declined by 2% to R147 million because the number of transactions
declined by 5%. This was somewhat offset by a higher pricing mix; and
- · Information Services revenue increased by 7% to R134 million, largely owing to an
increase in the use of existing products and some new business.
- The JSE is tracking on target to deliver the committed R170 million cost savings by end 2019.
- · Gross remuneration which decreased by 19% as a result of the 22% lower average
headcount. Our exit headcount on 30 June was 362 (H1 2017: 454). This contributed
-12 percentage points.;
- · The long-term incentive scheme (LTIS 2010) charges which decreased by R16 million
to R10 million (2017: R26 million) owing to timing differences investing (-R9 million)
and a higher proportion of LTIS vesting in the prior year (-R7m). This contributed -6
- General expenses rose by R29 million, up 14%, to R241 million (H1 2017: R212 million).
- “We are clear about our 2018 priorities and hence what we need to do to deliver a better service to our clients and to grow this business sustainably. The JSE is a largely fixed-cost business. Therefore we will maintain our focus on costs, while making the necessary capital investments in areas that will enhance the Group’s service offering and sustainability,” concludes Newton-King.