SGX Q3 net profit slips 0.8% to S$99.7m

SINGAPORE Exchange (SGX) reported on Thursday that its net profit for the third quarter ended March 31 slipped 0.8 per cent to S$99.7 million from S$100.5 million a year ago, even as the derivatives business continued to power ahead.

Operating revenue rose 2.9 per cent to S$228.8 million from S$222.2 million a year ago. The Board of Directors has declared an interim dividend of 7.5 Singapore cents per share, compared to five cents a year ago. This will be payable on May 13.

Loh Boon Chye, SGX chief executive officer, said: "We achieved another record derivatives performance, registering daily average volume of more than one million contracts for the first time during the quarter. We saw increased activity and higher open interest amid strong institutional demand, as our clients continued to use our multi-asset platform to manage their portfolios across equities, currencies and commodities.

"Our securities business performed in line with global markets as investors adopted a cautious stance. Our Reits sector remained an outperformer with higher turnover, contributing 20 per cent of the overall securities daily average value in 3Q FY2019. To meet investors' demand, we expanded our range of daily leveraged certificates (DLCs) to include more single-stock DLCs," he added.

Looking ahead, Mr Loh said: "Our performance is on track, with FX starting to emerge as a promising growth pillar. Our derivatives business remains strong, as we are the only exchange that provides comprehensive access to Asian markets across asset classes. Our innovative derivatives products will open up opportunities to capture new revenue streams in the coming years. We also anticipate an improvement in our securities business. The recent halt in interest rate hikes will benefit equities markets, particularly our Reit sector."