SGX H2 profit up 10.5% to S$316.3 million; proposes Q4 dividend of S$0.09 per share
EPS for the half-year period stands at S$0.296, an increase from S$0.268 for H2 FY2023
THE Singapore Exchange ’s (SGX) net profit for the second half ended June 2024 rose 10.5 per cent to S$316.3 million, from S$286.3 million a year prior.
Earnings per share (EPS) for the half-year period stood at S$0.296, up from S$0.268 for H2 FY2023.
Its board has proposed a final quarterly dividend of S$0.09 per share, up from S$0.085 per share in the same quarter a year ago.
If approved, this would represent an annualised increase of 5.9 per cent, which SGX on Thursday (Aug 8) said was in line with its target of growing its per-share dividend at a mid-single digit percentage compound annual growth rate (CAGR) in the medium term.
The proposed final quarterly dividend will be payable on Oct 25, upon approval by shareholders at SGX’s upcoming annual general meeting on Oct 10.
Operating revenue for H2 grew 2.6 per cent to S$639.4 million from S$623 million in H2 FY2023.
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This was driven mainly by a 17.6 per cent year-on-year surge in operating revenue from fixed income, currencies and commodities (FICC), which was offset in part by an 8.1 per cent decline in contributions from derivatives.
Cash equities increased by 1.4 per cent and platform and other revenue increased by 3.3 per cent over the same period.
The Singapore bourse’s net profit for the full year stood at S$597.9 million, up 4.7 per cent from S$570.9 million in FY2023 and translating to a full-year EPS of S$0.559.
After adjustments to exclude certain non-cash and recurring items which SGX deems to have less bearing on the group’s operating performance, adjusted FY2024 net profit was S$525.9 million, up 4.5 per cent year on year with an adjusted full-year EPS of S$0.492.
Operating revenue for FY2024 (*see amendment note) was up 3.1 per cent to S$1.23 billion as opposed to S$1.19 billion, amid higher contributions from FICC as well as platform and others which more than offset declines in both cash equities and derivatives.
Total expenses also increased on a year-on-year basis, rising S$20.4 million or 3.4 per cent, to S$625.3 million. This was due to higher staff costs as well as a S$8 million one-time provision to fund an initiative to improve the vibrancy of the securities market.
“Monies will be channelled to our industry partners for initiatives that can help and improve market vibrancy. This could include areas like growing distribution channels for investor outreach, new services to enhance or engage investors and support the expansion of our product shelf and regional connectivity,” said Ng Yao Loong, chief financial officer of SGX Group, at the financial results briefing on Thursday.
SGX’s chief executive Loh Boon Chye attributed the revenue growth in FY2024 to strong volumes in SGX’s currencies and commodities businesses as the bourse expanded its customer base and drove higher activity.
“Our currencies and commodities franchises are on a healthy growth momentum, with volumes doubling over the last three years,” he added.
SGX aims to increase its group revenue, excluding Treasury income, to a 6 to 8 per cent CAGR range over the medium-term.
Loh said that he expects this to be driven mainly by low- to mid-teens percentage growth in its over-the-counter foreign exchange and exchange-traded derivatives businesses.
“We expect to achieve positive operating leverage as group expense growth (excluding transaction-based expenses, such as processing and royalties) is expected to be in the low to mid-single digit percentage CAGR in the medium term,” he added.
Shares of SGX closed on Wednesday S$0.30 or 3.2 per cent up to S$9.79.
Amendment note: An earlier version of this story mistakenly referred to the FY2024 period as FY2023.
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