Karachi: JS Global Capital Limited, a prominent brokerage firm operating within Pakistan's financial markets, has reported a significant upturn in its financial performance for the year ending December 31, 2024. The company, which primarily generates revenue through brokerage services on the Pakistan Stock Exchange (PSX), experienced a robust increase in its operating revenue, reaching PKR 1.26 billion, reflecting a 65% growth from the previous year.
According to the company's annual report, the macroeconomic environment in Pakistan showed signs of stabilization in 2024, supported by government regulatory efforts and structural reforms. The International Monetary Fund (IMF) played a pivotal role, with Pakistan receiving the final tranche of a US$1.1 billion Standby Arrangement in March and securing a 37-month Extended Fund Facility for SDR 5.32 billion (~US$7 billion) in September. These developments, along with upgrades in Pakistan's credit ratings by Moody's and Fitch, underscored the country's improved economic outlook.
JS Global's performance was buoyed by the rally in the equity markets, where the KSE-100 Index posted historic gains of 84% during the calendar year 2024. The average traded volumes surged by 76% to 569 million shares, and the Average Daily Turnover (ADTO) in US$ terms rose by 124% to US$80 million. The market's vitality was further enhanced by domestic liquidity, which absorbed net foreign outflows of US$117 million during the year.
According to information available from the Pakistan Stock Exchange (PSX), JS Global Capital Limited is one of the largest brokers in terms of revenue generated from fixed-income trading and commodities trading. The company has identified the low penetration ratio of Unique Identification Numbers in equities, at less than 0.15% of the country's population, as an opportunity to expand its digital presence and customer base.
On the financial front, JS Global reported a profit before tax of PKR 560.37 million and a profit after tax of PKR 454.56 million, marking a 143% increase compared to the previous year. The earnings per share surged to 16.54 from 6.82, highlighting substantial value creation for shareholders.
Despite inflationary pressures leading to a 35% increase in administrative and operating expenses, the company's profitability remained robust. Treasury income was strong, with dividend income increasing to PKR 157 million, and margin financing demand rose by 40%, driven by the bullish market sentiment.
The broader financial markets in Pakistan also showed positive trends. The State Bank of Pakistan (SBP) initiated monetary easing in June, reducing the policy rate to 13% by the year-end, which contributed to the favorable conditions in the equity and money markets. The foreign exchange market remained stable, supported by higher foreign exchange reserves and a positive current account balance.
Overall, JS Global Capital Limited's strong financial performance in 2024 reflects the broader economic stabilization in Pakistan and the positive momentum in the financial markets. The company's strategic initiatives to expand its market presence and capitalize on emerging opportunities in the equities sector are expected to drive further growth in the coming years.