SGX Reports Strong Q3 FY18 Earnings, Net Profits Highest in a Decade

Singapore Exchange (SGX)Singapore Exchange (SGX) on Friday published its Q3 FY2018 (Jan-March) earnings report registering a record S$100.5 million ($76 million) in net profits, a highest since the same quarter of 2008. The strong growth in net profits, as well as revenues, is aided by strong volumes across market instruments amid heightened market volatility. 

The revenue during the quarter rose 10 percent year-over-year to $222 million against $202.7 million in Q3 FY2017, a highest recorded quarterly revenue since the exchange got publicly listed in 2000. Similarly, the net profits are 21 percent higher compared to S‎$83 million in Q3 FY2017.

Revenue from equities and fixed income segment rose 5 percent to S$107.9 million; Derivatives market segment increased 20 percent to S$90 million. Major equity index futures such as China A50 futures and Nikkei 225 futures also contributed massively to the growth. Foreign exchange futures, whose contribution to the overall earnings is less, but in term of trading volume it recorded an 89 percent growth. Securities Daily Average volume (SADV) rose 1 percent to S$1.45 billion while total traded value during the quarter rose 15 percent to S$89.9 billion.

The earnings per share during the quarter rose 21 percent to 9.4 cents per share, up by 21 percent from 7.8 cents per share in Q3 FY2017.

Loh Boon Chye, CEO Singapore Exchange
Loh Boon Chye, CEO Singapore Exchange

CEO Loh Boon Chye commenting on the latest earnings report said: 

“We achieved a strong set of results this quarter, with our net profit reaching a new 10-year record high and our revenues hitting their highest levels since we listed in 2000. We actively engaged liquidity providers and focused on outreach to investors, which contributed to increased activity in the securities market. Our marketing efforts, together with longer trading hours enabled by our new derivatives trading and clearing platform, added to an increase in global participation across products and trading sessions.”

Further adding: “With an improved global [economic] outlook, global central banks are likely to adopt tightening measures. This could lead to investors rebalancing the portfolio. We expect, as a result, our market activities to improve. We will continue to build on our multi-asset offering and increase our servicing and marketing efforts across our domestic and international client base. We will also strengthen our global network through strategic partnerships and alliances.”

CFO, Chng Lay Chew said: “Equity and fixed income market revenue rose 5% on a 17% year-on-year increase in the daily average value of trading. The increase was a reflection of “positive market sentiments” as well as the result of “the various initiatives to enhance the securities market in the last two to three years.”