SGX's Q1 net profit holds steady at $91m

Revenue up 2% but expenses rise 4%; interim dividend of 7.5 cents

Earnings were largely flat at the Singapore Exchange (SGX) for the first quarter, it reported yesterday.

Net profit came in at $91.1 million for the three months to Sept 30, compared with $90.7 million a year earlier. Revenue was $208.9 million, up 2 per cent from the same period last year.

Expenses rose $4 million, or 4 per cent, to $102.5 million.

Earnings per share were unchanged at 8.5 cents while net asset value per share was 88 cents, down from $1.02 as of June 30.

The firm has declared an interim dividend of 7.5 cents per share, payable on Nov 5, up on the five cents a share declared a year ago.

Chief executive Loh Boon Chye noted that continued market volatility will increase demand for risk management and investment solutions.

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To cater to evolving investor needs, we will be extending our product offerings in the securities market.

MR LOH BOON CHYE, chief executive of Singapore Exchange, on demand for risk management and investment solutions.

"To cater to evolving investor needs, we will be extending our product offerings in the securities market," he said.

"As we grow our global network and partnerships, we will also establish new offices in New York and San Francisco to acquire new customers and enhance client coverage."

Cash from operating activities was $98.2 million, compared with $102.7 million previously, while total equity stood at $946.1 million as of Sept 30, compared with $935.1 million a year ago.

SGX noted "strong record revenues" in its derivatives business, with turnover up 21 per cent to $97.7 million, and 47 per cent of total revenue.

However, its equities and fixed-income business - comprising issuer services, securities trading and clearing, and post-trade services - declined 13 per cent to $86.4 million. This represented 41 per cent of total revenue, down from 49 per cent a year earlier.

SGX shares closed down two cents, or 0.29 per cent, at $6.93 yesterday before the results were released.

A version of this article appeared in the print edition of The Straits Times on October 20, 2018, with the headline 'SGX's Q1 net profit holds steady at $91m'. Print Edition | Subscribe