JSE records 4% y/y HEPS growth

The Johannesburg Stock Exchange (JSE) has reported a significant 4% year-on-year growth in headline earnings per share (HEPS), showcasing a solid performance in a challenging market environment. In an exclusive interview with CNBC Africa, JSE CEO Leila Fourie expressed her satisfaction with the positive results and highlighted key strategic initiatives driving the exchange's success. The JSE's focus on revenue diversification, technological innovation, sustainability, and talent development has positioned the exchange for continued growth and resilience. With a strong cash position and a commitment to returning value to shareholders, the JSE remains optimistic about its future prospects despite global economic uncertainties. One of the key themes of the interview was the JSE's resilient financial performance in the face of market volatility. Leila Fourie emphasized the importance of revenue diversification in stabilizing earnings throughout market cycles. The JSE saw a 13% increase in non-trading revenue, which now contributes 25% of total revenue. Strategic initiatives like the acquisition in linked market services have delivered impressive results, with a compound annual growth rate of 49% since the acquisition. By fortifying its position through diversification, the JSE has demonstrated its ability to weather market fluctuations and deliver sustained growth. Another significant focus for the JSE is its ongoing digital transformation efforts. Leila Fourie highlighted the exchange's investments in new technologies, including the introduction of a private placements market and an artificial intelligence social listening tool. The JSE's shift towards digitization extends to its market data offerings, with the equity market moving to the cloud and the launch of Trade Explorer providing market participants with valuable trading data insights. By prioritizing digitization and innovation, the JSE is enhancing its competitiveness and responsiveness to market dynamics. ESG (Environmental, Social, and Governance) sustainability is a critical priority for the JSE, with a focus on product innovation, governance standards, and diversity and inclusion. Leila Fourie outlined the exchange's success in introducing new sustainable products to the market, such as green and sustainability bonds. The JSE has also implemented stringent governance requirements to promote transparency and disclosure on ESG-related matters. In terms of gender diversity, the JSE has made significant strides with over 80% of the executive committee and more than 60% of the board being female. By leading by example, the JSE aims to inspire other organizations to prioritize ESG principles and gender equality. Leila Fourie emphasized the JSE's commitment to creating value for shareholders by maintaining a strong cash position and returning excess funds through dividends. The exchange's decision to declare a dividend of 769 cents reflects its confidence in the financial outlook and its disciplined approach to capital management. While global economic factors pose uncertainties, the JSE remains focused on managing controllable factors like costs and revenue diversification to mitigate volatility in earnings. By staying agile and innovative, the JSE is poised for sustained growth and resilience in the ever-evolving market landscape.