A more than 30 per cent uptick in costs pushed total expenditure for the Jamaica Stock Exchange Group (JSEG) to almost $608 million — $154 million above that of the prior year.

According to the group’s financial statements for the second quarter ended June 30, 2025, net profit fell by 41 per cent to $45.5 million, despite a 15 per cent increase in total income, which reached $658.5 million.

The main drivers of the rise in expenditure for the quarter were higher staff costs, property expenses, and professional fees.

Staff costs alone increased by more than $30 million compared to the same period in 2024, primarily due to cost-of-living adjustments and investments in new resources to support anticipated growth and improved customer service delivery.

Property-related expenses climbed by approximately $32.6 million, driven by higher maintenance and repair costs. Professional fees rose by over 40 per cent to $16.3 million, largely due to increased legal fees required to support the business. Other operating expenses also surged, increasing by 86.3 per cent to $18.3 million, as the group invested in additional activities aimed at stimulating growth in both the primary and secondary markets.

“Net impairment losses on financial assets were also above the prior year by $55.5 million or 867.2 per cent due to the requirements of the expected credit loss model,” the directors noted.

After emerging from a period of downturn, the JSE in 2024 gained approximately 3 per cent in value, pushing the market’s total capitalisation to just over $2 trillion at the start of this year. Its operation made up of a main, junior, US-denominated bond and private markets which all cater to companies of different sizes and various investor needs.

“We will endeavour in the medium to long term to pursue measures to decrease expenditure, address issues relating to receivables, improve revenues and grow profits and continue to pay dividends to our shareholders,” Chairman Steven Whittingham told shareholders in a note accompanying the latest financials.

“We will also remain focused on our strategic path of growth through the exploration and promotion of new and existing markets, new product development, and improvement in systems and service delivery to JSEG’s customers and other stakeholders,” he added.

The JSEG, which operates as the country’s leading financial market infrastructure, facilitates the trading of securities, such as stocks, bonds, and other investment instruments. The group comprises several subsidiaries, including the Jamaica Stock Exchange (JSE), the Jamaica Social Stock Exchange (JSSE), and the Jamaica Central Securities Depository (JCSD), along with its JCSD Trustee Services arm, which provides clearing, settlement, and custodial services. Beyond trading, the group plays a vital role in promoting capital formation, financial literacy, and economic growth both locally and across the wider Caribbean region.

Further commenting on the Group’s second-quarter performance, Whittingham described it as “fair”, given challenging market conditions. “We anticipate that as interest rates trend down and other market turbulence subsides, investors and companies will become more active in the market, which will result in a more improved performance.”

Noting significant strides made in the group’s diversification strategy, the chairman said these will continue to support its growth efforts as it continues to navigate ongoing geopolitical uncertainty and economic volatility across the region which could further threaten the market.

“The JSEG will continue our efforts in ensuring that our governance framework and our risk mitigating measures which assist in driving sustainability are robust. We remain resolute in our commitment to maximise shareholders’ wealth through the improvement in income and the management of our expenditure,” he stated.

WHITTINGHAM…we will endeavour in the medium to long term to pursue measures to decrease expenditure, address issues relating to receivables, improve revenues and grow profits and continue to pay dividends to our shareholders.