The JSE reported significant earnings growth for its 2024 financial year, despite heightened geopolitical tensions and subdued economic growth in the first half of 2024. The bourse’s strong performance was driven by business resilience, stability, and greater revenue diversification across its non-trading business segments.
The Group reported an increase in net profit after tax (NPAT) of 10.4% to R918m with a return on equity (ROE) of 20.2%, up from 19.4% in the prior year.
The JSE’s share price outperformed headline indices, delivering 30% year on year growth during 2024. The JSE continues to be cash-generative with net cash generated from operations of R1.09bn, which enabled the Board to declare an ordinary dividend of 828 cents per share for 2024 (2023: 784 cents), generating a total shareholder return of 40% for the year.
“We recorded revenue growth across most of our asset classes off the back of sustained positive market sentiment following the formation of the Government of National Unity (GNU). Our strategy to build a diversified and resilient exchange group resulted in non-trading income increasing to R1,170m and it now contributes 37.8% of operating income (2023: 36.8%),” said Leila Fourie, JSE Group chief executive officer.
“I am particularly pleased with the structural reductions in our cost base, which helped restrain total expenditure growth to 6.2%. This performance was underpinned by robust and resilient systems and operational processes and uptime of 99.97% across all our systems – above our long-term average.”
“The Group is committed to its growth and diversification strategy. These solid results demonstrate the value of our investments across the value-chain, in our technology and our people, and provide further momentum for future growth,” continued Fourie.
Strong cash growth
The JSE has exhibited a healthy cash generation and robust balance sheet. At the end of December 2024, the cash balance stood at R2.8bn (including bond investments) with net cash generated from operations at R1.09bn (2023: R1.11bn).
Total income increased by 6.5% to R3.167bn which was supported by the diversified asset classes in the business. The diversification of revenues at the bourse protected operating income from a year of muted equity market activity, with most business segments reporting growth in revenue for the financial period. The JSE Investor Services (JIS) revenue was up 20.2%, Primary Markets revenue up by 15.6%, commodity derivatives revenue up 11.6% and revenue from bonds and financial derivatives up 6.6% YoY.
The JSE made meaningful strides in driving its strategic priorities in 2024. Uptime across the markets was at an all-time high at 99.97% versus 99.89% in 2023. In line with its technology enablement journey, the bourse has made progress in the modernisation of its BDA system and further launched new technology services such as Colo 2.0. The Group is in the process of developing a central clearing solution for the bond electronic trading platform (ETP).
Revenue performance per segment:
Capital MarketsPrimary market: +15.6% to R187mEquity trading: +0.2% to R444mColocation fees: +10.0% to R47mEquity derivatives trading: -1.9% to R115mBond and financial derivatives: +6.6% to R139mCommodity derivatives trading: +11.6% to R89m
JSE Investor Services (JIS)JIS: +20.2% to R229m
Post-Trade ServicesClearing and settlement revenue: -0.5% to R409mBack-office services (BDA) revenue: +12.7% to R415mFunds under management revenue: -8.2% to R95m
JSE ClearJSE Clear: +5.5% to R118m
Information Services:Information Services” +1.1% to R454m
“Our future prospects and long-term strategic objectives are underpinned by operational resilience, diversified revenue streams and innovative technology advances. Building a future-fit and diversified financial market infrastructure backed by innovation and modern infrastructure is the Group’s apex focal point,” concluded Fourie.
