Singapore Exchange posts marginally higher profit, record revenues

Singapore Exchange Ltd said on Thursday it posted a marginally higher adjusted profit and record revenues, helped by the bourse operator's push towards its derivatives product offerings amid a weak securities market.

A stronger showing from cash equities and treasuries helped offset higher derivatives volumes for equities, currencies and commodities.

SGX's revenue from fixed income, currencies, and commodities increased 19 per cent to S $252.7 million, $182.92 million, and contributed to nearly 23 per cent of total revenues. Total revenue went up 4 per cent to a record S $1.10 billion.

Chief Executive Loh Boon Chye said that our FICC business remains a key growth engine and is expected to deliver mid-teens percentage revenue growth in the medium term.

SGX, which benefits heavily from its favorable location as a gateway for regional trades, said that portfolio risk management activity is expected to rise with increasing risks in the global economy.

SGX Group maintains its medium-term revenue growth expectation of a high single-digit percentage range, it said.

The company's capital expenditure for fiscal 2023 is expected to rise to between S $70 million and S $75 million, and is likely to remain at similar levels in the medium term.

A final quarterly dividend of 8.0 Singapore cents per share was proposed, in line with a year ago.

In a separate announcement, SGX said Koh Boon Hwee will replace Kwa Chong Seng as the board's chairman.