SINGAPORE (THE BUSINESS TIMES, REUTERS) – The Singapore Exchange (SGX) posted a 13.2 per cent rise in second-half net profit to $232.7 million amid record full-year revenue.

This was helped by its push towards its derivatives product offerings amid a weak securities market.

Operating revenue for the six months to June 30 gained 7.9 per cent to $577.4 million in the second half of 2022, from $535.1 million previously, SGX said in a regulatory filing on Thursday (Aug 18).

Full-year revenue reached a record $1.10 billion, a 4 per cent increase as compared with last year’s $1.06 billion.

“Our record-high revenue was driven by higher derivatives volumes across equities, currencies and commodities, as our global customers increasingly used our multi-asset platform to navigate market uncertainties,” said SGX chief executive officer Loh Boon Chye.

SGX’s revenue from fixed income, currencies and commodities (FICC) increased 19 per cent to $252.7 million, and contributed to nearly 23 per cent of total revenues.

“Our FICC business remains a key growth engine and is expected to deliver mid-teens percentage revenue growth in the medium term,” said Mr Loh.

SGX maintained its medium-term revenue growth expectation of a high single-digit percentage range.

It also posted a higher earnings per share in the second half at 21.8 cents versus 19.2 cents a year ago.

It proposed a final quarterly dividend of eight cents, the same as last year, payable on Oct 21 after books closure on Oct 14. If approved, SGX’s total dividend for the year will stand at 32 cents per share.

For the full year, net profit rose 1.3 per cent to $451.4 million, from last year’s $445.4 million.

Adjusted net profit, which excludes certain non-cash and non-recurring items that have less bearing on SGX’s operating performance, was $456.4 million for financial year 2022.

Commenting on its outlook for the coming year, SGX said its portfolio risk management activity is expected to rise in tandem with the increasing risks in the global economy.

“Notwithstanding these risks, SGX Group maintains its medium-term revenue growth expectation of a high single-digit percentage range. Treasury income has bottomed out following interest rate hikes by major central banks and is poised to recover in FY2023,” SGX said.

In a separate announcement, it said former DBS Bank and Singapore Airlines chairman Koh Boon Hwee will replace Mr Kwa Chong Seng as SGX chairman.