SGX releases Q3 volumes, reports net profit of S$138 million

Singapore Exchange (SGX) published its market statistics for the third quarter of the financial year 2020, reporting high net profit amid market volatility caused by the coronavirus pandemic.

The Q3 2020 highlights include:

  • The exchange’s net profit surged at $137.5 million, up by 38% compared to S$99.7 million for the same period the previous year.
  • Revenues reached S$295.8 million for the Q3, while last year for the same period they were S$228.8 million, marking 29% increase.
  • EBITDA was S$186.2 million, up by 38.7% from last year, when it was S$134.2 million and earnings per share reached 12.8 cents, 9.3 cents for the year before.
  • The Board declared a dividend of 7.5 cents per share, payable on 13 May 2020, same as last year.
SGX announces trading volumes

Loh Boon Chye, Chief Executive Officer of SGX, commented:

Loh Boon Chye, CEO of SGX

Amid the COVID-19 pandemic, our priority is to keep SGX’s markets relevant, resilient and fully accessible round-the-clock, to serve the heightened demand from market participants for risk management solutions and investment opportunities across our asset classes. Our expanded geographical footprint has helped to support our US and European clients trading outside of Asian trading hours, whose activity has grown to 20% of total derivatives volumes.

Loh continued:

With uncertainty around the eventual economic and financial impact of COVID-19 and path to recovery, these elevated levels of volatility are likely to be prolonged. We value the support of our industry partners and stakeholders; together, we will continue to enable efficient risk and portfolio management for investors and clients, and help businesses raise capital.”
Loh said that from FY2021, which starts on 1 July 2020, SGH will adopt half-yearly financial reporting, with dividends continued to be paid on a quarterly basis.

Loh added:

SGX is committed to paying dividends on a quarterly basis, even with semi-annual financial reporting. We will also continue to publish our monthly market statistics reports which provide timely updates on our markets and products.

SGX also reported Fixed Income, Currencies and Commodities (FICC) increased 23% to S$45.5 million (S$37.0 million for the previous year). Currencies and Commodities – Derivatives revenue was up by 23% at S$41.5 million (S$33.7 million for the previous year). Equities derivatives revenue lead by accounting for 73% of the total revenue. It was up by 31% at S$217.3 million (S$165.7 million for the previous year). Cash equities was up by 38% at S$111.3 million (S$80.4 million for the previous year), accounting for 38% of total revenue. Data, Connectivity and Indices revenue rose by 26% to S$33.0 million (S$26.1 million for the previous year). The company’s expenses for the third quarter increased by 20% to S$132.9 million (S$110.6 million for the previous year).

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