The Johannesburg Stock Exchange (JSE) has reported a significant boost in profits, reaching R918 million for the 2024 financial year amidst a backdrop of global tensions and sluggish economic growth in the initial half of the year. This strong financial performance can be attributed to the JSE’s resilience, stability, and strategic revenue diversification across its non-trading business segments.

Notably, the group witnessed a 10.4% rise in net profit after tax (NPAT), culminating in a 20.2% return on equity (ROE), a notable increase from the previous year’s 19.4%. Throughout 2024, the JSE’s share price demonstrated exceptional growth, outperforming key indices with a remarkable 30% year-on-year surge. The exchange’s operational strength was further underscored by a net cash flow from operations amounting to R1.09 billion, enabling the Board to declare a dividend of 828 cents per share for 2024, thereby yielding a total shareholder return of 40% for the year.

Leila Fourie, the CEO of JSE Group, highlighted the positive revenue growth across various asset classes, attributing it to enduring market optimism post the establishment of the Government of National Unity (GNU). The JSE’s strategic emphasis on building a diversified and resilient exchange is evidenced by the non-trading income climbing to R1.170 billion, now constituting 37.8% of operating income.

The JSE’s robust financial position is underpinned by healthy cash generation and a strong balance sheet, with a cash balance of R2.8 billion by the end of December 2024. Total income surged by 6.5% to R3.167 billion, supported by revenue growth in diversified asset classes. Despite a subdued equity market, revenue streams from various business segments flourished, with JSE Investor Services (JIS) revenue soaring by 20.2%, Primary Markets revenue by 15.6%, commodity derivatives revenue by 11.6%, and revenue from bonds and financial derivatives by 6.6% year-on-year.

In line with its growth strategy, the JSE made significant advancements in 2024, achieving an uptime of 99.97% across markets and progressing in the modernization of its Broker Dealer Accounting (BDA) system. Additionally, the introduction of new technology services like Colo 2.0 reflects the exchange’s commitment to technological innovation. Plans are underway to develop a central clearing solution for the bond electronic trading platform (ETP), further reinforcing the JSE’s position as a forward-looking and resilient financial entity.