Singapore Exchange 3Q earnings dip 1% to $99.7 mil

SINGAPORE (Apr 25): Singapore Exchange (SGX) reported 3Q19 earnings of $99.7 million, 1% lower than $100.5 million in 3Q18.

However, on a year-to-date basis, 9M19 earnings came in at $287.2 million, 3% higher than $279.5 million in 9M18.

During the quarter, operating revenue increased by 3% to $228.8 million compared to $222.2 million in the previous year, mainly due to higher contribution from the exchange’s derivatives and market data & connectivity segments.

Derivatives revenue increased by 32% y-o-y, with higher contribution from equity and commodities, due to increased volumes in the SGX FTSE China A50 and Iron Ore derivatives contracts, as well as significant volume increases in FX futures and MSCI Net Total Return derivatives; and higher contribution from revenue from collateral management, licence, membership and other revenue, mainly due to a change in mix of products traded.

The increase in revenue was however partially offset by a 23% y-o-y decrease in equities & fixed income.

Expenses increased by 6% to $110.6 million from $104.4 million a year ago, mainly due to higher staff costs and technology expenses.

The board of directors has declared an interim dividend of 7.5 cents per share, payable on May 13.

Looking ahead, Loh Boon Chye, CEO of SGX, says, “Our performance is on track, with FX starting to emerge as a promising growth pillar. Our derivatives business remains strong, as we are the only exchange that provides comprehensive access to Asian markets across asset classes. Our innovative derivatives products will open up opportunities to capture new revenue streams in the coming years. We also anticipate an improvement in our securities business. The recent halt in interest rate hikes will benefit equities markets, particularly our REIT sector.”

Shares in SGX closed 2 cents lower at $7.26 on Thursday.