SGX net profit up 5.5% to 88.3m in Q2

Higher market levels of market activities are recorded in the past year.

Singapore Exchange (SGX) today reported net profit of $88.3m for 2Q FY2017, an increase of 5% from a year earlier, with revenue rising 3% to $199.6m and expenses unchanged at $97.2m.

Earnings per share was 8.2 cents and the Board of directors has declared an interim dividend of 5 cents per share, payable on 6 February 2017.

Loh Boon Chye, Chief Executive Officer of SGX, said, “Our results this past quarter reflect higher levels of market activities compared to a year earlier as the conclusion of the US Presidential Election and clarity on the interest rates environment brought participants back to the market. We successfully completed the acquisition of the Baltic Exchange during the quarter.”

Issuer Services revenue rose $0.3m or 1% to $19.5m, accounting for 10% of total revenue. Meanwhile, Securities Trading and Clearing revenue rose $5.5m or 12% to $52.1m, accounting for 26% of total revenue. Post Trade Services revenue rose $0.3m or 1% to $29.7m, accounting for 15% of total revenue. Market Data and Connectivity revenue also rose $1.6m or 8% to $23.3m accounting for 12% of total revenue.

On the other hand, Derivatives revenue declined $2.7m or 3% to $75.0m accounting for 38% of total revenue.

Loh foresees the uncertainty around future US policies to slow down Asian economies and influence trading activity going forward.

"We will continue to execute our strategy and diversify our revenues," he said.