Singapore Exchange FY profit falls as derivatives drag

SGX reported a net profit of S$340 million for the year ended June 30.

An SGX sign is pictured at Singapore Stock Exchange. REUTERS

Singapore Exchange's full-year net profit fell 2 percent on Thursday, weighed down by lower revenue and weak performance in its derivatives business.

SGX, a global centre for business trusts and real estate investment trusts, reported a net profit of S$340 million for the year ended June 30 versus S$349 million a year ago.

Revenue fell 2 percent to S$801 million.

Revenue from the company's derivatives business fell 7 percent to S$303.1 million, while the equities and fixed-income business revenue was steady at S$404.5 million.

Market volumes of its key Asian equity derivative contracts were lower this year leading to a 10 percent decline in derivatives volumes to 165.2 million contracts, SGX said in a statement.

Listing revenue, however, rose 6 percent due to higher number of new bond listings.

SGX saw 819 bond listings raising $384.7 billion, compared to 349 listings raising $172.0 billion a year earlier.

Expenses also declined 2 percent in the year, primarily due to lower processing and royalties fees and technology expenses.

The company proposed a final dividend of 13 cents per share.

Shares in the company ended down 0.3 percent at S$7.54 on Thursday.