SGX Q4 profit down 20.1%, full year earnings stable; announces final dividend of 13 cents

SGX announced a net profit of $76.8 million for the quarter ended June 30.
SGX announced a net profit of $76.8 million for the quarter ended June 30.PHOTO: ST FILE

SINGAPORE - The Singapore Exchange (SGX) reported a drop in revenue and profit for its fiscal fourth quarter, resulting in flat full year earnings growth, the bourse announced on Wednesday (July 27).

In the three months to June 30, revenue was down 8 per cent year on year to S$198.1 million, as the equities and fixed income revenue dropped 6.7 per cent to S$101.3 million while derivatives revenue slipped 13.2 per cent to S$74.5 million.

With operating expenses up 1.4 per cent to S$106.4 million, the fourth quarter net profit was S$76.8 million, 20.1 per cent lower compared with the same period a year ago.

For the full fiscal year, the SGX reported a total net profit of S$349.1 million, essentially unchanged from the S$348.6 million a year ago. The lower earnings were due partly to a S$6 million impairment on SGX's investment in the Bombay Stock Exchange.

The SGX board recommended a final dividend of 13 cents per share, down from 16 cents a year ago. This brought total dividend to 28 cents, unchanged from a year ago.

Commenting on the full year performance, SGX chief executive Loh Boon Chye said the bourse has delivered consistent performance under volatile market conditions.

In its equities and fixed income unit, which accounted for half of total revenue, the SGX saw 21 new equity and trust listings that raised S$2.1 billion in the past year, compared to the 34 new listings that raised S$2.7 billion a year ago. Listing revenue was hence down 10 per cent to S$46.7 million.

Securities trading and clearing revenue also dropped, down 2 per cent to S$205 million, as the daily average traded value and total traded value were both largely unchanged from a year ago.

Derivatives revenue - 40 per cent of SGX's total - however rose 10 per cent over the 12 months to S$325.3 million, and market data and connectivity revenue gained 7 per cent to S$87 million.

The SGX announced its full year earnings just 2 weeks after suffering its longest trading outage. Expenses related to the market disruption will be recorded as and when incurred, the bourse said.

SGX shares closed up four cents or 0.52 per cent at S$7.74, ahead of the results announcement.