Singapore Exchange (SGX) recorded a net profit of S$67 million for the third quarter, down 10.2 percent from the previous year, mainly attributed to a slight boost in its securities clearing, which is SGX’s core business activity.
In contrast, Q3 revenue rose 10.1 percent to S$169 million, with revenue from the derivatives business climbing 21.6 percent to S$38.8 million.
Revenue for the securities business also climbed five percent to S$73.7 million from a year ago. This was attributed to the 13 percent increase in average daily turnover of firmer securities. Clearing revenue edged up three percent to S$57.6 million, boosted by the higher number of capped trades, which saw a contract value of over S$1.5 million.
For the nine months ending 31 March, net profit declined 10.4 percent to S$215.4 million, while revenue dipped 4.7 percent to S$500 million.
DMG & Partners Securities noted that it has lowered its full-year net profit forecast for SGX by 12 percent to S$299 million to account for the high percentage of capped trades.