SGX's Q1 profits rose 28% thanks to market volatility

Singapore Exchange (SGX) posted its best quarterly results in seven years thanks to the recent volatility in global markets.
Singapore Exchange (SGX) posted its best quarterly results in seven years thanks to the recent volatility in global markets.PHOTO: REUTERS

SINGAPORE - Singapore Exchange (SGX) posted its best quarterly results in seven years thanks to the recent volatility in global markets.

The increase in market activities boosted earnings in the stock market operator's securities business, while its derivatives unit continue to enjoy higher transaction volumes.

All the other businesses apart from issuer services, also contributed to the overall growth.

Net profit for the quarter ended Sept 30 grew 28 per cent to S$99 million compared with the same quarter last year.

This was also SGX's sixth highest quarterly net profit since it listed in 2000.

Revenue jumped 30 per cent to S$220 million.

"It was a good quarter, best since the first quarter of 2008," said chief executive Loh Boon Chye at the results briefing after the close of the market on Wednesday (Oct 21).

The local bourse will reward its shareholders with a quarterly dividend of 5 cents per share, up from 4 cents per share, payable on Nov 5.

Earnings per share for the quarter rose 28 per cent from a year earlier to 9.3 cents, while net asset value stood at 79.4 cents per share as at Sept 30, down 12.9 per cent from 91.2 cents per share as at June 30 last year.

Mr Loh said that improving liquidity is one of his three business priorities for the exchange.

"Only with a sufficiently deep and liquid market, will we be able to attract more IPOs when global economic and financial markets conditions," he said.

He will also look to diversifying SGX's business mix and maintaining cost discipline.

SGX shares closed 2 cents lower at $7.51 ahead of its results briefing.

kohping@sph.com.sg