“We achieved a strong set of results this quarter, with our net profit reaching a new 10-year record high and our revenues hitting their highest levels since we listed in 2000,” says Loh Boon Chye, chief executive officer of SGX.
“We actively engaged liquidity providers and focused on outreach to investors, which contributed to increased activity in the securities market. Our marketing efforts, together with longer trading hours enabled by our new derivatives trading and clearing platform, added to an increase in global participation across products and trading sessions,” he adds.
Equities & Fixed Income revenue, which comprises Issuer Services, Securities Trading & Clearing, and Post Trade Services – and accounted for nearly half of total revenue – increased by 5% to $107.9 million during the quarter.
Securities Trading and Clearing revenue increased 12% to $61.7 million in 3Q18, as securities daily average traded value (SDAV) increased 17% to $1.45 billion, with total traded value rising 15% to $89.9 billion.
Meanwhile, derivatives revenue, which contributes to 41% of total revenue, rose 20% to $90.5 million.
Equity and Commodities revenue grew 16% as total volumes increased 34% to 53.5 million contracts, mainly due to higher volumes in SGX FTSE China A50 futures, Nikkei 225 futures, and SGX Nifty 50 index futures.
Collateral management, licence, membership and other revenue increased 31% to $27.8 million in 3Q18, mainly due to increases in licence fee from higher derivatives trading volume and an increase in collateral management income.
The improvements were partially offset by a 2% dip in Market Data and Connectivity revenue, which slipped to $23.9 million as a result of a decline in one-off fees recovered from data audits in the same period last year.
Expenses increased by 5% to $104.4 million in 3Q18, mainly due to higher staff costs, and processing and royalties costs.
As at end March, cash and cash equivalents stood at $521.6 million.
SGX has declared an interim dividend of 5 cents per share for 3Q18, unchanged from a year ago. The interim dividend will be paid on May 8, 2018.
Looking ahead, Loh says market activity is expected to improve as investors seek avenues to manage their portfolio risk.
“We will continue to build on our multi-asset offering and increase our servicing and marketing efforts across our domestic and international client base. We will also strengthen our global network through strategic partnerships and alliances,” he says.
Shares of SGX closed 3 cents lower at $7.56 on Friday.
