The Johannesburg Stock Exchange (JSE) has reported a significant increase in profits for its 2024 financial year despite facing challenges such as geopolitical tensions and sluggish economic growth in the first half of the year. The exchange’s strong performance can be attributed to its resilience, stability, and a strategic focus on revenue diversification in non-trading business segments.

In a notable development, the JSE’s net profit after tax (NPAT) surged by 10.4% to R918 million, accompanied by a rise in return on equity (ROE) to 20.2%, up from the previous year’s 19.4%. Investors saw favorable returns as the JSE’s share price outperformed major indices, delivering a remarkable 30% growth year on year in 2024.

The exchange’s operational strength was evident with a net cash generation from operations amounting to R1.09 billion, enabling the declaration of an ordinary dividend of 828 cents per share for 2024. This move resulted in a total shareholder return of 40% for the year, showcasing the JSE’s commitment to value creation for its investors.

Leila Fourie, the CEO of the JSE Group, highlighted the positive revenue growth experienced across various asset classes, driven by optimistic market sentiment following the establishment of the Government of National Unity (GNU). Emphasizing the importance of a diversified and resilient business model, Fourie noted that non-trading income surged to R1.17 billion, contributing significantly to the exchange’s operating income.

The JSE’s financial stability was underscored by a healthy cash balance of R2.8 billion as of December 2024, supported by robust cash generation from operations. Total income saw a 6.5% increase to R3.167 billion, bolstered by revenue growth in different business segments. Notably, JSE Investor Services (JIS) revenue soared by 20.2%, while Primary Markets revenue and commodity derivatives revenue witnessed substantial growth as well.

The exchange’s strategic initiatives in 2024 yielded positive outcomes, with market uptime reaching a record high of 99.97%. Technological advancements were a key focus, with enhancements made to the Broker Dealer Accounting system and the introduction of new services like Colo 2.0. Additionally, plans are underway to develop a central clearing solution for the bond electronic trading platform (ETP), showcasing the JSE’s commitment to innovation and operational excellence.