Tax credit saves JSE

JSE_Buidling2_600c250pxA tax credit of $7 million saved the Jamaica Stock Exchange (JSE) from reporting a loss in 2014 as the exchange reported lower interest income of $42.4 million versus $56.5 million and an 11.6 percent higher operating income.
The JSE encountered higher operating cost that rose 11.7 percent for the year to $384 million which is higher than the operating income of $337 million. Property expenses grew 33 percent to $83 million, wages was up by 13.5 percent to $171.7 million and professional fees by 48 percent to $35.6 million.
JSE ended up with a profit after tax of only $3 million versus $5.7 million in 2013. Earnings per share was only 2 cents but net asset value per share ended at $4. The stock last traded at $2 on the Jamaica Stock Exchange.
For the year to September the JSE reported only $8 million in profit or a mere 6 cents per share, but bad debt recovered amounted to $10 million before tax. For the year to September revenues jumped $41 million to hit $242 million. Expenses climbed for the nine months, from $247 million to $273 million or just over 10 percent, a slower pace than the income growth of 20 percent for the same period.
The JSE needs a pick-up in market activity to deliver strong top line growth while keeping cost under control to satisfy investors, that could well come in 2015.

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