Singapore Exchange (SGX) has today reported financial of its second quarter 2019 fiscal, showing a positive and solid growth during the quarter, with a steady year-on-year increase.
Revenue during the quarter came in at S$224.1 million, representing an increase of 9 per cent year-on-year when compared to revenue of S$205 million in Q2, 2018. The net profits for the exchange increased to S$96.5 million (around $62.8 million) during the quarter, which is 8.4 per cent higher compared to S$88.4 million profit in Q2, FY2018.
The operating profits also managed to increase by 10 per cent on an annual basis to S$113.7 million in fiscal 2019 compared to S$103 million in Q2 of fiscal 2018. Further breaking up the financials, the equities and fixed income revenue fell by almost 12 per cent to S$85.6 million and accounted for almost 30 per cent of the revenue. The Securities trading and clearing revenue also decreased on a yearly basis, falling by 13 per cent from S$51.8 million in Q2 2018 to S$45.2 million. This accounted for almost 20 per cent of the total revenue.
During the quarter, the daily securities trading volume declined by 14 per cent to S$0.98 billion and total trading fell by 12 per cent, coming in at S$62.7 billion for the Q2, FY19.
Commenting on the results, CEO of SGX Loh Boon Chye, said:
“We are on a strong growth momentum and our financial performance underscores our resilience as a multi-asset exchange.”
“We achieved a second consecutive quarter of record performance in our derivatives business, with robust institutional demand for our risk management and hedging tools, including our MSCI Net Total Return index futures and FX futures contracts.”
On falling trading value he added:
“…investor sentiment was dampened by concerns on slower global economic growth and escalating trade tensions, which led to lower activity in our securities business along with other regional markets. Notably, we are seeing increased interest in our securities products such as our new single stock daily leverage certificates, as investors seek out more investment opportunities.”