The Singapore Exchange turned in a healthy fourth quarter, though earnings fell for the full year.
Net profit jumped 10.9 per cent to $85.2 million for the three months ended June 30, on a 4.9 per cent rise in operating revenue of $207.7 million. The stronger revenue was lifted by contributions from the bourse operator's derivatives division rising 10.2 per cent to $82.1 million.
"We achieved creditable results in a year of relatively low volatility in global markets. We are beginning to see market sentiment improve, with companies in the region increasingly seeking to raise capital," said Mr Loh Boon Chye, SGX's chief executive.
The board proposed a final dividend of 13 cents a share payable on Oct 6, bringing the total dividend for the year to 28 cents a share.
For the full year 2017, it reported net profit of $339.7 million, down 2.7 per cent year on year. Excluding a one-off loss of $4 million from the disposal of its investment in the Bombay Stock Exchange, and one-off acquisition costs of $3.7 million for the Baltic Exchange, its net profit would have been $347.4 million. Total revenues fell 2.1 per cent to $800.8 million for the year.
Full-year earnings per share fell to 31.7 cents from 32.6 cents, while net asset value per share was 96.5 cents as at June 30, compared with 92.5 cents a year earlier.
AT A GLANCE
$85.2 1 million (+10.9%)
$207.7 million (+4.9%)
DIVIDEND PER SHARE:
13 cents (unchanged)
Equities and fixed income - comprising issuer services, securities trading and clearing, and post-trade services - made up 51 per cent of total revenue.
Within this, turnover from issuer services climbed 2 per cent to $83.8 million, helped largely by a 6 per cent increase in listing revenue to $49.4 million, backed by a record number of new bond listings.
The year saw 819 bond listings raising $384.7 billion, compared with 349 listings raising $172 billion previously. There were 23 new equity listings raising $1.3 billion for the year, compared with 21 listings raising $2.1 billion previously.
Mr Loh said the secondary equities market is also an important element of fund-raising for companies.
A total of $16.4 billion was raised this year through primary and secondary listings. He said that $6.7 billion in market capitalisation was also added to the equities market.
"We see a healthy IPO (initial public offering) pipeline going into 2018," Mr Loh said. For the year, revenue from securities trading and clearing was steady at $205 million. SGX said its securities daily average traded value rose 2 per cent to $1.12 billion, while total traded value grew 2 per cent to $280.7 billion.
Expenses slid 2 per cent to $399 million due to lower processing and royalty fees and technology expenses. Excluding costs over the Baltic Exchange, expenses would have fallen 5 per cent.
Total staff costs gained 2 per cent to $162.3 million due to the inclusion of Baltic Exchange staff costs.
Its average headcount for the year was 794, including 32 from the exchange - up from 748 last year.
SGX shares closed two cents or 0.3 per cent lower at $7.54 yesterday, before the results were announced.