SGX reports 6.8% dip in Q3 earnings

SGX reported a net profit of S$83.1 million for Q3, down from the S$89.2 million in the same period a year earlier.
SGX reported a net profit of S$83.1 million for Q3, down from the S$89.2 million in the same period a year earlier. PHOTO: REUTERS

SINGAPORE - Local bourse operator Singapore Exchange (SGX) saw earnings drop 6.8 per cent in the third quarter as revenue slid.

SGX on Thursday reported a net profit of S$83.1 million for the three months ended Mar 31, down from the S$89.2 million in the same period a year earlier.

Excluding a one-off loss of S$4 million from the disposal of its investment in the Bombay Stock Exchange, net profit would have been S$87 million - still 2 per cent lower than that a year ago.

Operating revenue in the quarter dipped 1.5 per cent to S$202.7 million, while operating profit was little changed, inching up just 0.3 per cent to S$102.9 million.

Operating expenses fell 3.4 per cent to S$99.7 million.

Earnings per share shrank 7 per cent to 7.8 cents, compared with 8.3 cents previously. Net asset value per share was 88.1 cents as at Mar 31, down from 92.5 cents as at Dec 31 last year.

The board of SGX has proposed a dividend of five cents per share, unchanged from previously.

"In the past quarter, we saw continued momentum in the equities market following the US presidential election, with increased participation seen from both retail and institutional customers," said SGX chief executive Loh Boon Chye said.

"While sentiments have improved, positive outcomes on US economic policies will be important to sustain trading activities."

SGX shares closed three cents or 0.4 per cent lower at S$7.45 on Thursday, before the results were announced.