SINGAPORE: The Singapore Exchange has reported a 10.5 % rise in second-half profit, driven by growth in its currencies and commodities business, while equities lagged.

Earnings for the six months to June stood at S$316.3mil, up from S$286.3mil in the year-ago period.

The bourse operator proposed a final quarterly dividend of nine cents per share, up from 8.5 Singapore cents per share the previous year.

The dividend is payable on Oct 25 after approval at its upcoming annual general meeting.

If approved, it represents an annualised increase of 5.9 %. SGX said this was in line with its target of achieving a mid-single digit percentage compound annual growth rate for its per-share dividend over the medium term.

Operating revenue for the second half grew 2.6 % to S$639.4mil from S$623mil a year ago. This came on the back of a 17.6 % jump in revenue from fixed income, currencies and commodities.

Cash revenue from its equities business edged up 1.4 %, while contribution from derivatives fell 8.1 %.

“Our currencies and commodities franchises are on a healthy growth momentum, with volumes doubling over the last three years,” SGX chief executive Loh Boon Chye said.

For the full year, SGX booked a net profit of S$597.9mil, an increase of 4.7 % from a year earlier.

This lifted its earning per share to 55.9 cents, versus 49.2 cents a year earlier.

After adjustments to exclude certain non-cash and recurring items, adjusted full-year net profit was S$525.9mil, up 4.5%.

Full-year revenue came to S$639.4mil, up 2.6% from S$623mil the previous year.

Revenue from its fixed income, currencies and commodities segment increased by S$58.9mil, or 22.3 %, to S$322.5mil from S$263.6mil the previous year. This segment accounted for 26.2% of total revenue, up from 22.1% a year earlier.

But cash revenue from the equities business declined 2.1% to S$334.9mil. It accounted for 27.2% of total revenue, down from 28.6% a year earlier.

Loh noted though that the equities business had shown stronger activity in the second half of the 2024 financial year (FY24).

In FY24, SGX recorded seven new equity listings, raising S$117mil, compared with eight new listings that raised S$37.6mil in the previous year. Secondary equity funds raised were S$1.2bil, down from S$4.8bil in the prior year.

In a briefing on its results yesterday, Loh said the changing macroeconomic environment has led more companies to prepare for a listing on SGX.

“We’re now seeing more mainboard-potential listees. We hope that the market stays more favourable and conducive, but we’ve also seen some of the US numbers last week, so all things have to be aligned,” he said.

The Monetary Authority of Singapore announced last week that it had formed a review group to recommend steps to strengthen the development of Singapore’s stock market.

The review group will suggest measures to attract primary and secondary listings to Singapore and improve liquidity.

The move comes three years after a S$1.5bil fund called Anchor Fund @ 65 was established in 2021 by the government and Temasek - Singapore’s investment company - to attract fast-growing companies to list on the local bourse.

Stockbrokers had told The Straits Times that there were still potential issues, including concerns that 12 months to complete a report was too long, as well as the lack of public consultation and industry participation in the committee.

Regarding these issues, Loh noted that SGX has been continuously engaging with the market.

“Now that there is a visible review group, we will engage with them in terms of what other ideas are there to improve liquidity,” he said.

 - ANN