Africa’s biggest bourse breaks billion profit mark as investor sentiment improves

The Johannesburg Stock Exchange (JSE) has reported full-year earnings above one billion rand for the first time, buoyed by renewed domestic confidence and rising global appetite for South African assets.

According to the exchange’s results released on Monday, net profit after tax rose 16.7 percent to R1.07 billion ($57.8 million) in 2025, up from R918 million ($49.6 million) in 2024. Headline earnings per share (HEPS) increased 17.7 percent year-on-year to 1,329 cents.

Return on equity strengthened to 22.0 percent from 20.2 percent in the prior year, underscoring improved profitability and capital efficiency.

The strong showing comes amid a rally in local equities that has pushed the benchmark index to fresh highs above 128,000 points, delivering gains of roughly 50 percent over the past year.

The results mark the final full-year performance under Leila Fourie, group CEO, who will step down at the end of March after seven years in the role and more than 15 years with the bourse. Valdene Reddy is expected to assume the position from April 1, 2026.

“In light of renewed national confidence and global interest in South African assets, the bourse’s growth was driven by elevated equity market activity, proactive cost management and consistent execution across its core business lines and a diversified revenue base, demonstrating high quality of earnings,” Fourie said in a statement.

She added: “Our results reflect both the current strength of South Africa’s markets and the discipline of a strategy built through the cycle.”

Further details from the earnings report showed operating income rose 14.2 percent, supported by solid performance across key divisions. Capital Markets and Post-Trade Services each grew 18 percent, while Information Services and JSE Clear both advanced 10 percent.

The group remains strongly cash generative. As of December, the JSE’s cash balance increased 12.7 percent to R3.2 billion ($173.0 million), including bond investments. Net cash generated from operations rose 12.3 percent year-on-year to R1.23 billion ($66.5 million).

This enabled the board to declare an ordinary dividend of 961 cents per share for 2025, up from 828 cents in 2024, alongside a special dividend of 100 cents per share. The total dividend payout ratio rose to 85.6 percent from 78 percent, translating to a 28.1 percent increase in total dividends year-on-year.

Fourie noted that the JSE’s systems remained resilient, with uptime at 99.96 percent, exceeding the long-run average, while the BDA transformation programme delivered key milestones ahead of schedule.

“As we enter the final year of our Vision 2026 strategy, we will continue executing against our strategic objectives and sustaining a resilient, diversified earnings base. It has been an immense privilege to lead the JSE,” she said.