SGX Reports Q1 FY2016 Metrics, Highlighted by Surging Net Profits

SGX yielded a net profit of $99.3 million for Q1 FY 2016, up 28% YoY from $77.6 million in Q1

The Singapore Exchange (SGX) has reported its financial metrics for the Q1 FY 2016, which showed a steady YoY growth from the prior year, according to an SGX statement.

In particular, SGX yielded a net profit of $99.3 million for Q1 FY 2016, up 28% YoY from $77.6 million in Q1 FY 2015 – the outperforming figure constituted a steady growth across all of its business operations with the exception of its Issuer Services, which incurred a fall of -6.0% YoY from Q1 FY 2015.

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In addition, SGX reported Q1 FY 2016 revenues of $220 million, representing a surge of over 30.3% from $168.9 million in Q1 FY 2015. Operating profits meanwhile also orchestrated a similar trajectory, coming in at $117.3 million in Q1 FY 2016 – this compares to just $87.0 million in Q1 FY 2015, which is good for a rise of 34.8% YoY.

Another area of growth was seen across its equities and commodities divisions. Revenue from SGX’s derivatives in equities and commodities in Q1 FY 2016 grew by 67% YoY to $67.1 million in tandem with an 82% YoY increase in volume growth from Q1 FY 2015 – one of the primary catalysts for this performance was the SGX FTSE China A50 Index futures, as well as the Nikkei 225 Index and CNX India Nifty Index futures and options.

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Shareholders were also given some good news as SGX’s Board of Directors declared an interim dividend of $0.05 cents per share, up from $0.04 cents per share, which is scheduled to be payable on November 5, 2015.

According to SGX’s Chief Executive Officer (CEO) Loh Boon Chye in a recent statement on the metrics, “We are encouraged by the progress of our initiatives to increase the liquidity of our Securities market and will continue to build on this momentum. We appreciate the efforts of retail brokers during the recent market volatility in August, which helped increase retail participation in STI stocks.”

“Improving the liquidity of our Securities market is one of my three key priorities. Specifically, we will expand the Market Maker and Liquidity Provider programme to extend improvements in spreads and market depths to the mid and small cap stocks, which will complement ongoing efforts to profile our corporates. We also recognise that only with a sufficiently deep and liquid market will we be able to attract more IPOs as and when global economic and financial conditions improve,” he added.

Earlier this month, SGX released its volumes across its derivatives and commodities activities for the month ending September 2015. In terms of securities, the turnover at the SGX for September 2015 came in at $22.5 billion, which was higher by 7.0% YoY from September 2014 and -19.9% MoM from $28.1 billion in August 2015.

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