SGX reports FY2016 net profit of $349 million 

Singapore Exchange

Singapore Exchange (SGX) today announced net profit of $349.0 million for FY2016, unchanged from the previous year. This included an impairment charge of $6.0 million on SGX’s investment in the Bombay Stock Exchange. Revenue was $818.1 million, up 5%. Earnings per share was unchanged at 32.6 cents per share. The Board of Directors has proposed a final dividend of 13.0 cents per share, bringing total dividend for the year to 28.0 cents per share, unchanged from a year earlier.

Commenting on the results, Loh Boon Chye, Chief Executive Officer of SGX, said, “We delivered consistent performance under volatile market conditions this past year. As we executed our strategy, we have been disciplined in managing expenditure while making the investments needed to grow our businesses.”

Results Summary

Results for Equities and Fixed Income comprise Issuer Services, Securities Trading & Clearing and Post Trade Services, which together account for close to half of total revenue

Issuer Services revenue decreased 6% to $82.6 million due to a decline in the number of bond and equity listings. There were a total of 21 new equity and trust listings which raised $2.1 billion, compared to 34 raising $2.7 billion a year earlier.

Securities Trading & Clearing posted revenue of $205.0 million, down 2% from the previous year. Securities daily average traded value (SDAV) and total traded value remained largely unchanged at $1.1 billion and $274.1 billion respectively, but expanded participation from market makers and liquidity providers led to a 3% decrease in the average clearing fee to 2.9 basis points. Retail marketing efforts led to a total of 921,000 CDP accounts with holdings, a 5% increase from a year ago.

Post Trade Services reported a 13% increase in revenue to $118.2 million, driven by Securities settlement following changes in the mix of securities settlement instructions.

Derivatives revenue was up 10% to $325.3 million, accounting for 40% of total revenue. Equity and Commodities revenue grew 8% while collateral management, licence, membership and other revenue grew 17%.

Continued growth across majority of the derivatives contracts led to overall volumes increasing 14% to 183.1 million contracts. This increase in revenue from volume growth was partially offset by a revision in pricing and incentives for Iron Ore contracts introduced as a result of increased competition. Average month-end open interest for equities and commodities derivatives increased 12% year-on-year

Market Data and Connectivity revenue increased 7% over the year to $87.0 million, accounting for 11% of total revenue. Market Data revenue grew due to increased revenue from derivatives market data feed and index services, and Connectivity revenue grew due to the continued growth of our colocation business.

Outlook

Mr. Loh added, “We are conscious that economic and political uncertainties, including the decision by the U.K. to leave the EU, the upcoming U.S. presidential election, and changes in benchmark interest rates, could result in market participants adopting a cautious approach. We will continue to invest to grow our business and to be more competitive.”

Source: SGX

Leave a Comment


Broker Cyprus TopFX