The Singapore Exchange (SGX Group) has reported its highest revenue and net profit since listing, following record first-half figures posted in February. SGX reported earnings of $648 million for the FY2025 ended June 30, 8.4% higher than FY2024’s earnings of $598 million.
Earnings per share (EPS) stood at 60.6 cents.
On an adjusted basis, SGX’s earnings increased by 15.9% to $609.5 million from FY2024’s adjusted figure of $525.9 million. The figure excludes certain non-cash and non-recurring items that are said to have less bearing on SGX’s operating performance.
Adjusted EPS also grew by 15.9% y-o-y to 57 cents.
Net revenue — after netting off transaction-based expenses — increased 11.7% y-o-y to $1.30 billion, driven by higher revenue from all business segments. This includes associated treasury income. Treasury income declined $6.5 million y-o-y.
During the financial year, SGX recorded six new equity listings, which raised $25.7 million. This is down from seven new listings in FY2024, which raised $117 million.
See also: SGX posts record first-half revenue, net profit; CEO Loh fields succession questions
Cash equities’ revenue rose by 18.7% y-o-y, or $62 million, to $392.7 million as securities daily average value (SDAV) over the year rose to $1.34 billion from $1.06 billion last year. Equities accounted for 30.3% of total net revenue.
Derivatives’ revenue was up 13.8% y-o-y, or $44 million, to $345.9 million as the daily average volume (DAV) rose to 1.3 million contracts from 1.1 million contracts last year. Commodities and equity derivatives contributed to the increase.
Derivatives accounted for 26.6% of total net revenue.
See also: GuocoLand posts lower FY2025 on allowances in China; plans to pay a higher dividend
Currencies and commodities net revenue increased 8.6% y-o-y to $312.5 million. Over-the-counter foreign exchange (OTC FX) saw net revenue increase by 25.3% y-o-y, or $23 million, to $113 million. OTC FX headline average daily volume (ADV) increased 28.5% y-o-y to US$143 billion.
Net revenue from SGX’s last of four segments — platform and others — rose 3.0% y-o-y to $238.0 million and accounted for 18.3% of total net revenue.
Proposed dividend increase
SGX has proposed a final quarterly dividend of 10.5 cents per share, up by 1.5 cents from last year’s final quarterly dividend and 16.7% higher y-o-y. This brings SGX’s total FY2025 dividend to 37.5 cents per share.
The bourse has also proposed a 0.25-cent increase in its dividend every quarter from FY2026 to FY2028. This is subject to SGX’s shareholders’ approval at its annual general meeting (AGM) to be held on Oct 9.
Should the proposed increase go through, FY2026 will see a total dividend payout of 44.5 cents, while FY2027 and FY2028 will see total dividends of 48.5 cents and 52.5 cents per share respectively.
Total capital expenditure in FY2025 was $67.6 million, largely flat from $66.0 million this time last year.
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SGX Group CEO Loh Boon Chye says FY2025 was a “landmark year”. “We have demonstrated the enduring strength and resilience of our diversified multi-asset strategy with our strongest performance ever... As we execute with focus and invest strategically in our core businesses, we will drive sustainable growth and long-term value for our shareholders.”
He adds: “Looking ahead, we are on track to achieve 6%-8% growth in our group revenue (excluding treasury income) in the medium term. SGX FX — one of our key growth drivers — has risen to rank among the top three exchange-backed OTC FX platforms, with room to grow further. We will also strengthen our high-quality, multi-asset product shelf — across asset classes, geographies and themes.”
Shares in SGX closed 6 cents higher, or 0.37% up, at $16.34 on Aug 7, up 30% year to date.
See also:
- SGX sees 30 potential IPOs in the pipeline
- SGX eyes bolt-on M&As; says it’s ‘confident’ in sustaining dividend growth
Read about SGX’s prior results:
- SGX posts record first-half revenue, net profit; CEO Loh fields succession questions
- SGX posts 4.5% higher adjusted net profit for FY2024, raises quarterly DPS to 9 cents
- SGX enjoys FX, iron ore derivatives boost in 1HFY2024; insists spac rules 'work'
- After 12 quarters, SGX raises quarterly dividend for FY2023
