SGX H1 profit up 0.8% at S$342.7 million on the back of record half-year revenue

[SINGAPORE] Net profit for the Singapore Exchange (SGX) in the first half ended December rose 0.8 per cent to S$342.7 million, from S$340 million a year prior, as the group achieved its strongest half-year performance.

Earnings before interest, taxes, depreciation and amortisation for H1 grew 9.6 per cent on the year to S$466.1 million from S$425.3 million.

Earnings per share (EPS) for the half-year period stood at S$0.32, up from S$0.318 for the first half of 2024.

After adjusting for certain non-cash and non-recurring items that have less bearing on SGX’s operating performance, its net profit would have risen 11.6 per cent to S$357.1 million and its EPS would have been S$0.334.

SGX’s board of directors has declared an interim quarterly dividend of S$0.11 per share, up from the S$0.09 per share payout in the previous corresponding period. This brings total dividends in H1 FY2026 to S$0.2175 per share.

The interim quarterly dividend will be paid on Feb 24.

Revenue for the half-year period increased 7.9 per cent to S$736.2 million, from S$682.2 million in the previous corresponding period.

Excluding transaction-based expenses such as processing and royalty fees, net revenue would have risen 7.6 per cent to S$695.4 million, from S$646.4 million in the year-ago period.

By segments

The fixed income, currencies and commodities (FICC) segment registered a 12.5 per cent increase in net revenue to S$178.9 million, representing 25.7 per cent of the total net revenue for H1.

Specifically, fixed income net revenue was up 30.1 per cent at S$6.2 million. This consisted of S$4.5 million in listing revenue, which rose 41.9 per cent from the year-ago period, and S$1.7 million from corporate actions and other revenue, which gained 6.2 per cent.

“There were 560 bond listings raising S$272.8 billion, compared to 395 bond listings raising S$145.6 billion a year earlier”, the bourse operator said.

Currencies and commodities under FICC logged an 11.9 per cent increase in net revenue to S$172.7 million.

Net revenue from cash equities, which made up 32.2 per cent of total net revenue, was up 16.2 per cent at S$223.9 million.

Net revenue from derivatives equities, which accounted for 24.1 per cent of total net revenue, declined 5.6 per cent to S$167.4 million.

Platform and others’ net revenue, accounting for 18 per cent of total net revenue, increased 6.8 per cent to S$125.2 million.

Total expenses, excluding transaction-based costs, were S$270.8 million, up 2.9 per cent from S$263.1 million previously. This came mainly from higher fixed staff costs and other expenses, which were partially offset by lower variable staff costs and depreciation and amortisation.

Outlook

Looking ahead, SGX Group chief executive officer Loh Boon Chye noted that the group’s performance was driven by sustained growth across its multi-asset business.

“The resilience of our trusted platform has enabled market participants to diversify their investments and manage risk in a challenging global environment,” he said.

“We remain confident in delivering medium-term revenue growth of 6 to 8 per cent alongside sustainable shareholder returns.”

He added: “Closer to home, activity in our stock market has been robust, supported by forward-looking measures from the Equities Market Review Group. Securities daily average traded value rose 20 per cent year on year to S$1.51 billion – the highest in five years – with a growing IPO (initial public offering) pipeline.”

The bourse operator noted that expense and capital expenditure guidance for FY2026 remain unchanged at a 4 to 6 per cent increase and S$90 million to S$95 million, respectively. It also reiterated its confidence in delivering a S$0.0025 per share quarterly dividend increase until the end of FY2028.

Shares of SGX fell 1.4 per cent on Wednesday (Feb 4) to close S$0.25 lower at S$17.75.