SGX Reveals Solid Financials for Q1 FY2018, Derivatives Up Double Digits

SGX yielded a net profit of $91 million, up 9 percent on a year-over-year basis from $83.1 million last year.

Singapore Exchange (SGX), the country’s paramount exchange operator, has just reported its comprehensive financial metrics for the previous three-month period, which showed a robust performance across its securities and derivatives operations.

In terms of the group’s Q1 FY2018 net profit, SGX yielded a figure of $91 million, up 9 percent on a year-over-year basis from $83.1 million in Q1 FY2017.

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Looking at SGX’s operating revenues during Q1 FY2018, the group reported $204.5 million over this timeframe, growth of 7 percent year-over-year from $190.8 million in Q1 FY2017.

Operating expenses also ticked higher in Q1 FY2018, coming in at $106 million, higher by 9 percent on a year-over-year basis, compared to $97.2 million in Q1 FY2017.

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One of the largest business segments that saw growth in Q1 FY2018 was SGX’s securities trading and clearing revenue which increased $4.1 million or 9 percent to $51.2 million relative to $47.1 million a year back. The figure accounted for 25 percent of SGX’s total revenues.

On a related note, SGX’s derivatives business achieved the largest advance on a year-over-year basis, rising to $80.6 million from $70.8 million in Q1 FY2017, or higher by 14 percent.

SGX’s earnings per share (EPS) also notched a rise on a year-over-year interval, disclosing 8.5 cents per share in Q1 FY2018, up 9 percent from 8.5 cents per share in Q1 FY2017.

Commenting on the results, Loh Boon Chye, Chief Executive Officer of SGX, said: “We are starting the financial year on a firm footing, with improved performance and healthy participation from customers across all business segments. We also saw record trading activity in our key foreign exchange (FX) futures contracts and traction in our fixed income business, which reaffirm our diversification strategy into these asset classes. Among other initiatives to boost market turnover, we were the first in Asia to launch Daily Leverage Certificates, which have seen strong trading activity since their launch in mid-July.”

Mr. Chye added in a statement on the group’s outlook and earnings: “Looking ahead, we expect the momentum in market activity to continue and return to higher levels of past years. We have made considerable progress in delivering on our priorities. Just last week, we opened our U.S. office in Chicago and signed a collaborative listings agreement with Nasdaq. These are part of our efforts to grow a global client base and increase international participation across asset classes in our markets. We are seeking opportunities to collaborate with other exchanges to expand our businesses, as well as evaluating investments and partnerships to grow our FX, fixed income and commodities businesses.”

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