SGX’s net profit unchanged at $349m

Group revenue inched up only 5% to $818.1m.

Despite a strong derivatives business, Singapore Exchange’s net profit was flattish at $349 million at the end of FY16 as it included an impairment charge of $6 million on investment in the Bombay Stock Exchange. This was aside from the group’s expenses that rose to $409 million in the current financial year or 9% higher than the previous year’s.

SGX’s FY16 annual report ended June 2016 revealed that company revenue crept up 5% to $818.1 million in the period compared to $779 million in the previous financial year. The derivatives business was the biggest contributor accounting for 40% of total revenue. Turnover from the segment increased $29.5 million to $325.3 million.

Revenue from issuer services declined 6% to $82.6 million from $87.6 million largely due to a drop in listing revenue 10% to $46.7 million from $51.6 million. Listing revenue shrunk because of plunging number of bond listings. There were 349 bond listings raising $172 billion in FY16, compared to 487 listings raising 184.8 billion a year ago.

Revenue from securities trading and clearing dipped 2% to $205 million from $209.3 million, while Post Trade Services and Market and Data Connectivity posted upticks 13% to $118.2 million and 7% to $87 million respectively, the annual report showed.