SGX's net profit slips 16.3% to $83m

Blame it on lower market activities.

The local market has not been busy in the past quarter for Singapore Exchange to report exciting figures this result season. It has welcomed it 1Q17 with less cheer as it reported a 16.3% decline in net profits, from $99.3m to only $83.m.

This slowdown in earnings can be seen in the market infrastructure's headline, with revenues down 13% from a year earlier to $19m.

SGX CEO Loh Boon Chye said this reflects lower levels of market activities, compared to a much more volatile market in the previous year.

"Nevertheless, we remain committed to our long-term investment and diversification strategy while maintaining cost discipline. Our acquisition of the Baltic Exchange is progressing and we expect to complete the transaction by end November 2016,” he said.

Out of its services, the issuer services reported an increase in revenue contribution, albeit slightly, at 2% to $21.8m. This accounted for 11% of the group's total revenue.

Market data and connectivity also posed a slight 2% increase to $2m.

Meanwhile, its securities trading and post trade services suffered slight declines in revenue with 16% to $47.1m and 2% to $29.1m, respectively.

Derivatives services wilted with the largest decline at 22% from $90.9m to $70.m.