SGX first-quarter net profit up 24% to $92m

On the back of 15% revenue growth.

Singapore Exchange (SGX) reported first-quarter net profit (1Q FY2014) of $92.3 million, up 24% from a year earlier. Revenue was up 15% to $184.1 million as all businesses grew.

Revenue from the securities business grew 15% to $69.0 million and accounted for 38% of total revenue. The average value of daily trading was steady at $1.3 billion. Securities clearing revenue rose 17% to $54.4 million due to institutions trading a broader range of stocks and increased retail participation. The clearing revenue a year earlier was also lower due to block trades driven by merger and acquisition-related activities.

Derivatives revenue grew 16% to $51.7 million and contributed 28% of total revenue. Total volumes grew 36% to 26.4 million contracts led by increased volumes for China A50 futures, Nikkei 225 futures and options, and iron ore swaps.

A total 11 listings in the quarter raised $2.0 billion compared with 10 IPOs raising $3.6 billion a year earlier. New listings included Kris Energy, OUE Hospitality Trust, Rex International and SPH REIT. Total equity funds of $4.6 billion were raised, compared with $4.0 billion a year earlier. A total of $38.8 billion was raised from new bond listings, compared with $52.5 billion a year earlier. New bond issues included a US$1.5 billion Indonesian sovereign bond and a US$1 billion bond from Baidu.

Magnus Bocker, CEO of SGX, said, “We posted a 24% increase in first-quarter net profit to $92 million following a 15% growth in revenue to $184 million as institutional and retail participation in the securities market broadened and the global market share of our key derivatives contracts grew.

We will continue to execute our strategy amid uncertain market conditions. In the next few quarters, we will introduce products such as foreign exchange futures and new ASEAN equity index futures. The growth of our distribution capabilities is on track; we have received an automated trading services licence in Hong Kong. We remain committed to strengthening our regulatory and risk management capabilities including preparing ourselves for new European and US regulatory standards.”

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