SGX posts 1% rise in Q3 earnings; declares 5 cent a share interim dividend

Singapore Exchange saw a marginal increase in its earnings for the third quarter. PHOTO: THE BUSINESS TIMES

SINGAPORE - Singapore Exchange saw a marginal increase in its earnings for the third quarter, with all key units reporting slim growth.

Net profit for the three months to March 31 was $89 million, up just 1 per cent year-on-year. This came as revenue rose 3 per cent to $206 million.

Revenue from the equities and fixed income business added 4 per cent to $102 million. Within the segment, securities trading and clearing revenue increased by 4 per cent to $54.8 million, which was 27 per cent of SGX's total.

"The higher level of market activities (in the quarter) led to an increase in the securities daily average traded value by 5 per cent to $1.22 billion and total traded value also up by 5 per cent to $74.7 billion," SGX said in its results announcement after market close on April 20.

Derivatives, which accounted for another 40 per cent of SGX's revenue, contributed $82.2 million in the period, which was 3 per cent higher compared with a year ago.

The increase was supported by higher volumes in the SGX FTSE China A50 Index futures, Japan Nikkei 225 and iron ore contracts, SGX added.

Market data and connectivity revenue increased by 3 per cent to $21.6 million.

"Our results this quarter showed growth across our three business lines. This reflected higher levels of market activities as market participants react and adjust to the changes in benchmark interest rates and volatile commodity prices," SGX chief executive Loh Boon Chye said.

The bourse will focus on managing costs in response to greater competition among regional exchanges and the volatile market conditions.

He added: "We expect 2016 operating expenses to come in at the lower end of our previously announced guidance between $415 million and $425 million. "

The board declared an interim dividend of five cents per share - up from four cents last year - payable on May 6.

SGX shares closed up three cents at S$8.05 ahead of the results announcement.

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