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- Revenue: $715 million ($648 million in FY2012)
- Operating Profit: $414 million ($364 million) and Net Profit: $336 million ($292 million)
- Earnings per share: 31.4 cents (27.3 cents)
- FY2013 Proposed Final Dividend of 16 cents (15 cents) and Total Dividend of 28 cents (27 cents) |
SINGAPORE, July 23, 2013 - (ACN Newswire) - SGX recorded revenue of $715.1 million ($647.9 million) and a net profit of $335.9 million ($291.8 million) in FY2013. Earnings per share (EPS) was 31.4 cents (27.3 cents) and return on equity (ROE) was 39% (35%).
SGX's underlying profit was $350.9 million ($303.9 million) excluding an impairment charge of $15.0 million ($11.0 million) on our investment in the Bombay Stock Exchange (BSE).
The Board of Directors has proposed a final dividend of 16 cents (15 cents) per share, bringing total dividend to 28 cents per share (27 cents). This represents an 89% (99%) pay-out of the reported net profit in FY2013.
Mr Magnus Bocker, SGX CEO, said, "We are pleased to report a net profit of $336 million and underlying profit of $351 million, both up 15% over the previous year. This is our best performance since FY2008. Our continuing investments in new products and wider distribution enabled us to benefit from increased market activities. Securities total traded value increased 10% to $363 billion. Our Derivatives market continued to deliver growth with a number of records including total traded volumes of 101 million contracts, up 32% year-on-year."
Business Highlights
- Securities: Total stock market capitalisation was $954 billion at the end of June, an increase of 13% from $842 billion a year ago. Improved market activities during the second half raised the Securities daily average value (SDAV) by 11% to $1.5 billion ($1.3 billion) and total turnover by 10% to $363.4 billion ($331.2 billion). During the year, we launched the ASEAN Link with Bursa Malaysia and the Stock Exchange of Thailand, offering customers connectivity to Malaysia and Thailand.
- Derivatives: We had a record year for our Derivatives business, with total traded volumes up 32% to a record 100.6 million contracts (76.0 million). Average month-end open interest for the year grew 86% from 1.4 million contracts to a record 2.6 million contracts. Iron Ore swaps volumes grew 198% to 370,240 contracts (124,193 contracts), accounting for more than 90% of global exchange-cleared volumes. In the first quarter, we acquired 49% of the Energy Market Company of Singapore, marking SGX's entry into the electricity market.
- Issuer Services: Total equity funds of $13.5 billion were raised, up 120% from $6.1 billion a year ago. Primary equity funds of $8.1 billion ($1.0 billion) were raised from 30 (24) new listings. Secondary equity funds of $5.4 billion were raised, comparable to the $5.2 billion raised a year earlier. The number of new bond listings grew 41% to 424 (300), raising $196 billion, up 21% from $161 billion a year ago.
Market Development, Risk Management & Regulations
SGX maintains a robust risk management framework aligned with the highest international standards. This past year, we adopted the new CPSS[1]-IOSCO[2] Principles for Financial Market Infrastructures (PFMI) published in April 2012, one of the first clearing houses in the world to do so.
A number of key regulatory enhancements were implemented in adopting the Principles. One such enhancement was the introduction of a margin framework for securities cleared through the Central Depository (CDP).
In meeting the new PFMI standards, Singapore Exchange Derivatives Clearing (SGX-DC) became a Qualifying Counterparty under the Basel III framework. This allows our bank clearing members to benefit from lower capital requirements.
This past year, we also raised Mainboard admission requirements and introduced new rules requiring investors to mark their short sell orders. Together, these initiatives reinforced SGX's standing as an international stock exchange meeting the highest regulatory standards.
We have provided our two clearing houses, namely CDP and SGX-DC, with adequate capital to meet emerging global regulatory standards. As a group, SGX has ample capital to provide for future growth, and a strong debt-free balance sheet.
The CDP clearing fund remained largely unchanged at $101.5 million at the end of FY2013. The SGX-DC clearing fund stood at $562.9 million. This was an increase by our clearing members of $121.0 million from 3Q FY2013, of which $49.0 million was attributable to increased volatility and higher open interest, and $72.0 million to comply with the new PFMI standards.
Amid international regulatory changes in the US and Europe, SGX-DC's application to be registered as a Derivatives Clearing Organisation in the US was recently submitted to the US Commodity Futures Trading Commission. SGX is also in the process of applying for recognition under the European Market Infrastructure Regulation (EMIR).
Outlook
Improved sentiments across global capital markets in the second half of FY2013 led to increased trading and clearing volumes for both our Securities and Derivatives markets. Looking forward, the need for capital raising and risk management remains robust in Asia despite uncertain global economic conditions. We will continue to develop new products and services, and strengthen our regulatory and risk management capabilities. Operating expenses for FY2014 are expected to be between $320 million and $330 million. Technology-related capital expenditure is expected be between $35 million to $40 million. The Board plans to retain the current base dividend of four cents per share per quarter.
For more details of the financial performance and review, please refer to http://investorrelations.sgx.com/.
* All figures are for the year except for figures in brackets which are for the year earlier unless otherwise stated.
[1] Committee on Payment and Settlement Systems
[2] International Organisation of Securities Commissions
Contact:
Joan Lew
Tel: +65 6236 8658
Email: joan.lew@sgx.com
Carolyn Lim
Tel: +65 6236 8139
Email: Carolyn.lim@sgx.com
Investor Relations:
Darrell Lim
Tel: +65 6236 8951
Email: darrell.lim@sgx.com
Topic: Earnings
Source: Singapore Exchange (SGX)
Sectors: Daily Finance, Daily News
https://www.acnnewswire.com
From the Asia Corporate News Network
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