SGX H1 profit up 0.8% at S$342.7 million amid healthier IPO pipeline outlook
Adjusted net profit for the half-year period stands at S$357.1 million, an 11.6% increase
[SINGAPORE] Net profit for the Singapore Exchange (SGX) in the first half of the year ended December rose 0.8 per cent to S$342.7 million, from S$340 million in the year-ago period. This was the group’s strongest half-year performance.
“Trading activity has broadened across sectors, driving higher turnover beyond the Straits Times Index (STI) and contributing to a more balanced liquidity profile across the market,” said Loh Boon Chye, chief executive officer of the bourse operator, at the financial results briefing on Thursday (Feb 5). “Notably interest in mid-cap and growth-oriented companies rose significantly, with institutional investors recording net purchases of S$415 million in small and mid-cap stocks over the year,” he added.
This was partly boosted by last September’s launch of the iEdge Singapore Next 50 Index, which tracks the next 50 largest companies beyond the STI constituents.
SGX’s earnings before interest, taxes, depreciation and amortisation for H1 grew 9.6 per cent on the year to S$466.1 million from S$425.3 million.
Earnings per share (EPS) for the half-year period stood at S$0.32, up from S$0.318 for the first half of financial year 2025.
After adjusting for certain non-cash and non-recurring items that have less bearing on SGX’s operating performance, its net profit would have risen 11.6 per cent to S$357.1 million and its EPS would have been S$0.334.
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SGX’s board of directors has declared an interim quarterly dividend of S$0.11 per share, up from the S$0.09 per share payout in the previous corresponding period. This brings total dividends in H1 FY2026 to S$0.2175 per share.
The interim quarterly dividend will be paid on Feb 24, said the bourse operator on Thursday.
Revenue for H1 increased 7.9 per cent to S$736.2 million, from S$682.2 million in the previous corresponding period. This was the group’s highest revenue for a half-year.
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Excluding transaction-based expenses such as processing and royalty fees, net revenue would have risen 7.6 per cent to S$695.4 million, from S$646.4 million in the year-ago period.
By segments
The fixed income, currencies and commodities (FICC) segment registered a 12.5 per cent increase in net revenue to S$178.9 million, representing 25.7 per cent of the total net revenue for H1.
Specifically, fixed income net revenue was up 30.1 per cent at S$6.2 million. This consisted of S$4.5 million in listing revenue, which rose 41.9 per cent from the year-ago period, and S$1.7 million from corporate actions and other revenue, which gained 6.2 per cent.
“There were 560 bond listings raising S$272.8 billion, compared to 395 bond listings raising S$145.6 billion a year earlier”, the bourse operator said.
Currencies and commodities under FICC logged an 11.9 per cent increase in net revenue to S$172.7 million.
Net revenue from cash equities, which made up 32.2 per cent of total net revenue, was up 16.2 per cent at S$223.9 million.
Net revenue from derivatives equities, which accounted for 24.1 per cent of total net revenue, declined 5.6 per cent to S$167.4 million.
Platform and others’ net revenue, accounting for 18 per cent of total net revenue, increased 6.8 per cent to S$125.2 million.
Total expenses, excluding transaction-based costs, were S$270.8 million, up 2.9 per cent from S$263.1 million previously. This came mainly from higher fixed staff costs and other expenses, which were partially offset by lower variable staff costs and depreciation and amortisation.
Healthier IPO outlook
Market liquidity also benefited from stronger initial public offering (IPO) activity, noted Loh. SGX led South-east Asia in terms of IPO funds with nearly S$3 billion raised.
“Looking ahead, our IPO pipeline continues to strengthen with a healthier outlook compared with six months ago,” said Loh.
He noted that more than 30 companies were identified as part of SGX’s IPO pipeline last August, of which 18 have since listed.
This pipeline has grown further since then, Loh added, with more companies now engaging advisers and working towards potential listings on SGX. The exchange now expects the pipeline to remain active and aims to outperform the previous year.
Pointing to a good balance of listings across the mainboard and Catalist board, Pol de Win, head of global sales and origination at SGX Group, said: “As all these deals are happening, we see new additions coming in at a greater pace, and that’s encouraging.”
He also highlighted that the newly announced Global Listing Board (GLB) has broadened SGX’s reach by attracting companies that may not previously have considered Singapore as a listing destination, which was what SGX was hoping to achieve.
He added that the bourse operator has seen interest from different sectors, including technology, healthcare, consumer businesses, digital infrastructure and real estate, with this mix already reflected in transactions over the past six to eight months.
Speaking to The Business Times, de Win noted that the improvement in the IPO pipeline comes despite the seasonality typically seen in IPO activity, with the first quarter of the calendar year often quieter as companies prepare their full-year financial statements.
“Overall, as we continue to look at that sort of medium-term window, we are very confident,” he added.
De Win, who had previously described 2025 as a transitional year, said that there was a clear shift in market conditions between July and December last year.
“We are now in the new world, and we will keep building up on that momentum.”
He added that regional supply dynamics remain supportive, with many companies in Asia seeking liquidity for shareholders and capital for growth.
Initiatives rolled out following the Equities Market Review, including regulatory changes, the deployment of Equity Market Development Programme funds, and the introduction of the GLB, are expected to meaningfully improve the listing environment, he noted.
Separately, Loh said that SGX expects to announce the formation of the Equity Market Implementation Committee and its plans in the coming weeks. The committee will oversee the implementation of the Equities Market Review Group’s recommendations.
As SGX prepares to launch the GLB later this year, the exchange is seeing earlier engagement from high-growth, new-economy companies, he noted. This is broadening the pipeline and reshaping the profile of prospective listings.
In response to a query, Loh said that SGX hopes “to get the GLB up and running by the middle of this year”.
Thilan Wickramasinghe, head of research at Maybank Securities, asked for an update on another recently announced initiative, the Value Unlock Programme, including how many companies have signed up and when results might be announced.
Ng Yao Loong, SGX head of equities, said that since the programme’s official launch in mid-January, it has attracted around 100 companies, or roughly one-sixth of listed companies on SGX.
“The response has been quite encouraging,” he added, noting that many participants have asked how they could get involved.
Upbeat about future
Commenting on the results for H1, Loh noted that the group’s performance was driven by sustained growth across its multi-asset business.
“The resilience of our trusted platform has enabled market participants to diversify their investments and manage risk in a challenging global environment,” he said.
“We remain confident in delivering medium-term revenue growth of 6 to 8 per cent alongside sustainable shareholder returns.”
He added that securities daily average traded value rose 20 per cent year on year to S$1.51 billion – the highest in five years.
The bourse operator noted that expense and capital expenditure guidance for FY2026 remain unchanged at a 4 to 6 per cent increase and S$90 million to S$95 million, respectively. It also reiterated its confidence in delivering a S$0.0025 per share quarterly dividend increase until the end of FY2028.
Shares of SGX fell 1.4 per cent on Wednesday to close S$0.25 lower at S$17.75.
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