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SGX posts record revenue, profit inches up on derivatives boost

Published 08/17/2022, 08:55 PM
Updated 08/17/2022, 09:00 PM
© Reuters. FILE PHOTO: A man wearing a protective face mask walks past the Singapore Exchange (SGX) which stays open during "circuit breaker" measures to curb coronavirus COVID-19) in central business district area in Singapore, April 7, 2020. REUTERS/Edgar Su

(Reuters) -Singapore Exchange Ltd said on Thursday it posted a marginally higher adjusted profit and record revenues, helped by the bourse operator's push towards its derivatives product offerings amid a weak securities market.

Higher derivatives volumes for equities, currencies and commodities helped offset a weaker showing from cash equities and treasuries.

SGX's revenue from fixed income, currencies and commodities (FICC) increased 19% to S$252.7 million ($182.92 million), and contributed to nearly 23% of total revenues. It said total revenue increased 4% to a record S$1.10 billion.

"Our FICC business remains a key growth engine and is expected to deliver mid-teens percentage revenue growth in the medium term," said Chief Executive Loh Boon Chye.

The company's adjusted net profit attributable for the 12 months ended June 30 rose to S$456 million, from S$447 million last year.

SGX, which benefits heavily from its favorable location as a gateway for regional trades, said that with increasing risks in the global economy, portfolio risk management activity is expected to rise in tandem.

SGX Group maintains its medium-term revenue growth expectation of a high single-digit percentage range, it said.

The company's capital expenditure for fiscal 2023 is expected to rise to between S$70 million and S$75 million, and is likely to remain at similar levels in the medium term.

It also proposed a final quarterly dividend of 8.0 Singapore cents per share, in-line with a year ago.

© Reuters. FILE PHOTO: A man wearing a protective face mask walks past the Singapore Exchange (SGX) which stays open during

In a separate announcement, SGX said Koh Boon Hwee will replace Kwa Chong Seng as the board's chairman.

($1 = 1.3814 Singapore dollars)

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