SGX Reports First-Quarter Net Profit Of $92 Million

17/10/2013

  • Revenue: $184 million, up 15% from a year earlier
  • Operating profit: $107 million, up 21%
  • Net profit: $92 million, up 24%
  • Earnings per share: 8.6 cents, up 24
  • Interim dividend per share: 4.0 cents

Singapore Exchange (SGX) today reported first-quarter net profit of $92.3 million, up 24% from a year earlier. With growth across all businesses, revenue was up 15% to $184.1 million.

Revenue from the securities business grew 15% to $69.0 million and accounted for 38% of total revenue. The average value of daily trading was steady at $1.3 billion. Securities clearing revenue rose 17% to $54.4 million due to institutions trading a broader range of stocks and increased retail participation. The clearing revenue a year earlier was also lower due to block trades driven by merger and acquisition-related activities.

Derivatives revenue grew 16% to $51.7 million and contributed 28% of total revenue. Total volumes grew 36% to 26.4 million contracts led by increased volumes for China A50 futures, Nikkei 225 futures and options, and iron ore swaps.

A total 11 listings in the quarter raised $2.0 billion compared with 10 IPOs raising $3.6 billion a year earlier. New listings included Kris Energy, OUE Hospitality Trust, Rex International and SPH REIT. Total equity funds of $4.6 billion were raised, compared with $4.0 billion a year earlier. A total of $38.8 billion was raised from new bond listings, compared with $52.5 billion a year earlier. New bond issues included a US$1.5 billion Indonesian sovereign bond and a US$1 billion bond from Baidu.

CEO’s Comment

Magnus Bocker, CEO of SGX, said, “We posted a 24% increase in first-quarter net profit to $92 million following a 15% growth in revenue to $184 million as institutional and retail participation in the securities market broadened and the global market share of our key derivatives contracts grew.

We will continue to execute our strategy amid uncertain market conditions. In the next few quarters, we will introduce products such as foreign exchange futures and new ASEAN equity index futures. The growth of our distribution capabilities is on track; we have received an automated trading services licence in Hong Kong. We remain committed to strengthening our regulatory and risk management capabilities including preparing ourselves for new European and US regulatory standards.”

For the full SGX Financial Statements announcement, please visit www.sgx.com.

Financial Highlights

$ million, except where indicated

1Q FY2014

1Q FY2013

Change

1Q FY2014 vs

1Q FY2013

4Q FY2013

Change

1Q FY2014 vs

4Q FY2013

     

 

   

Key income statement figures

   

 

   
     

 

   

Securities

69.1

60.3

15%

77.9

(11%)

     

 

 

 

Derivatives

51.7

44.5

16%

59.0

(12%)

     

 

 

 

Market Data and Connectivity

18.9

18.1

5%

18.4

3%

     

 

 

 

Depository Services

25.2

20.8

21%

27.1

(7%)

     

 

 

 

Issuer Services

18.9

16.4

15%

19.1

(1%)

     

 

 

 

Other

0.3

0.4

(34%)

0.8

(64%)

     

 

 

 

Operating revenue

184.1

160.5

15%

202.3

(9%)

     

 

   

Operating expenses

77.4

72.6

7%

81.4

(5%)

     

 

   

Earnings before interest, tax, depreciation and amortisation

116.9

97.2

20%

130.8

(11%)

     

 

   

Profit from operating segments

106.7

87.9

21%

120.9

(12%)

     

 

   

Other gains/(losses)

1.5

1.8

(15%)

(13.7)

NM

     

 

   

Profit before tax

108.2

89.7

21%

107.2

1%

 

Tax

 

16.41

 

15.8

 

4%

 

20.7

 

(20%)

 

 

 

 

 

 

Profit attributable to equity holders

- reported

 

92.3

 

74.3

 

24%

 

87.6

 

5%

- underlying

92.3

74.3

24%

102.62

(10%)

 
     

 

   

Basic earnings per share (in cents)

8.6

7.0

1.6

8.2

0.4

Net asset value per share as at 30 September 2013, 30 September 2012 and 30 June 2013

72.1

66.2

9%

83.1

(13%)

Dividend per share (in cents)

 

 

 

 

 

- base

4.00

4.00

-

4.00

-

- variable

-

-

-

12.00

(12.0)

Total dividend

4.00

4.00

-

16.00

(12.0)

     

 

   

Key financial indicators

   

 

   

Revenue growth

14.7%

(10.1%)

 

28.2%

 

Cost to income ratio

42.0%

45.2%

 

40.2%

 

Operating profit margin

58.0%

54.8%

 

59.8%

 

Net profit margin

49.7%

45.8%

 

43.0%

 

Return on shareholders' equity

47.9%

35.4%

 

39.0%

 

 

 

 

 

 

 

1 Tax expense for 1Q FY2014 was $16.4 million. This included a $4.0 million write back of prior year tax provisions.

2 Excludes impairment loss on available-for-sale financial asset of $15.0 million.

NM: Not meaningful

Note: SGX’s financial year is from 1 July to 30 June