SGX Q2 profit unchanged, revenue from largest division drops

SGX Logo. Reuters

Singapore Exchange on Friday reported unchanged second-quarter net profit, with revenues from its largest equities and fixed income division posting a drop in the quarter.

SGX, a global centre for business trusts and real estate investment trusts, reported a net profit of S$88 million for the three months ended December 31, unchanged from a year ago.

Revenue gained 3 percent to S$205 million in the quarter, SGX said in a regulatory filing.

Revenue from the bourse's equities and fixed income division - which contributes nearly half to the overall revenue - declined 4 percent to S$97.5 million in the period.

Revenue from its derivatives business advanced 11 percent to S$83.3 million, while the issuer services business revenue was up 4 percent.

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Listing revenue grew 3 percent following a higher number of new bond and equity listings, with 289 bond listings raising S$103.5 billion.

SGX saw 7 new listings raising S$1.6 billion while secondary equity funds raised amounted to S$2.1 billion.

"Besides expecting more listings, we will strengthen our Asian derivatives foothold through new product offerings in equities, commodities and FX," Loh Boon Chye, Chief Executive Officer of SGX, said in a statement.

"Synergies with the Baltic Exchange are also coming through with more Asian members and a new LNG Index in the pipeline."

SGX declared an interim dividend of 5 cents per share.

Shares in the company ended up 1.5 percent at S$7.98 on Friday.

This article was first published on January 19, 2018