SGX net profit under threat with 15.9% loss

Blame it on low volatility, cautious investors.

In a release, for its first quarter financial year 2013 (1Q FY2013), Singapore Exchange reports $74 million profit.

SGX recorded revenue of $160 million ($178 million), net profit of $74 million ($88 million) and earnings per share (EPS) of 7.0 cents (8.2 cents).

The Board of Directors has declared an interim dividend of 4.0 cents (4.0 cents) per share, payable on 5 November 2012.

Mr Magnus Bocker, SGX CEO, said, “We reported a net profit of $74 million in a market with declining volatility and cautious investors. Our Securities and Derivatives1 volumes have held up well relative to other markets. Open interest for Derivatives contracts achieved a new record high in September, reflecting SGX’s stature as a clearing house of choice in Asia. We are also pleased to see increased capital raising activities with 10 new IPOs2 and 111 bond issues this quarter.”