SGX Reports Solid Q2 2019 Results, Revenue Jumps by 9% YoY

Equities, fixed income and securities trading revenues were all down year-on-year.

The Singapore Exchange (SGX) has today reported its financial results for the second quarter of its 2019 fiscal year. During the period the exchange managed to achieve a steady quarter with its key metrics reporting year-on-year increases.

Net profit for the SGX was S$96.5 million (around $62.8 million). When measured against the prior year period, which achieved a net profit of S$88.4 million, this represents an increase of around 8.4 percent.

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Revenues for the second quarter of the 2019 fiscal year came in at S$224.1 million, representing an increase of around nine percent when compared to Q2 of the 2018 fiscal year, which had revenues of S$205 million.

Operating profit also managed to increase on an annual basis in the second quarter of fiscal 2019, climbing by around ten percent from S$103 million in Q2 of fiscal 2018 to S$113.7 million in fiscal 2019.

Loh Boon Chye, SGX, Singapore Exchange
Loh Boon Chye
Source: LinkedIn

Commenting on the results, Loh Boon Chye, Chief Executive Officer of SGX, said:We are on a strong growth momentum and our financial performance underscores our resilience as a multi-asset exchange.”

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“We achieved a second consecutive quarter of record performance in our derivatives business, with robust institutional demand for our risk management and hedging tools, including our MSCI Net Total Return index futures and FX futures contracts.”

Equities, fixed income and securities revenue falls on SGX

Taking a more narrow focus, equities and fixed income revenue, which is made up of Issuer Services, Securities Trading and Clearing and Post Trade Services, actually fell by 12 percent to S$85.6 million, accounting for 30 percent of total revenue.

Securities trading and clearing revenue were also down on a yearly basis, falling by 13 percent from S$51.8 million in Q2 2018 to S$45.2 million in the current period. This accounted for 20 percent of total revenue in the quarter.

Alongside falling revenue, securities trading also dropped during the quarter. Namely, the securities daily average trading value declined by 14 percent to hit S$0.98 billion. Total trading fell by 12 percent, coming in at S$62.7 billion for the second quarter of 2019.

“…investor sentiment was dampened by concerns on slower global economic growth and escalating trade tensions, which led to lower activity in our securities business along with other regional markets. Notably, we are seeing increased interest in our securities products such as our new single stock daily leverage certificates, as investors seek out more investment opportunities,” Loh Boon Chye added.

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