SGX Reports Q2 Financials With Uneven Profits and Revenues

The Singapore Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (SGX) has reported its Q2 FY2016 operating metrics, which were characterized by a slightly waning profit relative to last year, according to an SGX statement.

The exchange yielded a net profit of $83.7 million in Q2 FY2016, relative to $86.6 million over the same period last year or -3.3% YoY from Q2 FY2015. By extension, revenues at SGX faced a similar trajectory, maintaining a tight consolidation, albeit slightly lower than last year’s figures, showing $194.6 million in Q2 FY2016 vs. $195.1 million in Q2 FY2015, or less than -1.0% YoY.

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In addition, SGX’s expenses have also notched a steady increase as of Q2 FY2016, rising 4.0% YoY to $97.1 million from $93.5 million in Q2 FY2015. Its earnings per share also took a slight dive to 7.8 cents in Q2 FY2016 from 8.1 cents last year, constituting a -3.7% decline YoY – this was partially offset by the Board of Directors, which declared an interim dividend of 5 cents per share, payable on 4 February 2016.

H1 Snapshot More Upbeat

The figure was slightly more optimistic during H1 FY2016, with SGX’s net profit swelling double digits to $183.0 million, up 11% YoY from $164.2 million in Q2 FY2015.

According to Loh Boon Chye, Chief Executive Officer (CEO) of SGX in a recent statement on the metrics: “It was a challenging quarter with persistent weak market sentiment. While net profit this quarter was $84 million, down 3% from a year earlier, our net profit for first half of FY2016 improved by 11% to $183 million, on the back of a strong first quarter.“

Results Breakdown

In terms of derivatives revenues at SGX, the figure grew by a factor of $1.1 million or 1.0% YoY to $77.6 million in Q2 FY2016 – overall derivatives trading counted towards 40.0% of all revenues at SGX in Q2 FY2016, up from just 39.0% a year ago. Moreover, equity and commodities derivatives revenue was reported at $56.3 million in Q2 FY2016, down -3.0% from $58.0 million in Q1 FY2016.

The results follow on a more upbeat Q1 FY2016 report from SGX that showed more robust figures, which by and large explains the strength of the group’s H1 performance.