Singapore Exchange - DBS Research 2022-08-19: FY22 Revenue & Net Profit Largely In Line; Awaiting Catalysts

• Singapore Exchange (SGX) reported its highest revenue since listing, of S$1,099m (+4% growth y-o-y), driven by higher volumes and fees. Excluding treasury income, total revenue came in at S$1,050m (+7% growth y-o-y).
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• Net profit rose 1% y-o-y to S$451m, largely in line with both the consensus and our estimate.
• A final quarterly dividend of S$0.08 per share was declared, bringing SGX's total dividend for FY22 to S$0.32.

Mixed performance across asset classes.

• Cash equities trading and clearing revenue fell 9% y-o-y to S$209.7m, as the Securities Daily Average Value (SDAV) declined 6% y-o-y, to S$1.27bn, on the back of lower average clearing fees of 2.62bps (FY21: 2.73bps) due to higher participation from market makers.
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• FICC revenue increased 19% y-o-y to S$252.7m on firm growth from currencies and commodities that offset the decline in fixed income revenue. Trading and clearing revenue from currencies and commodities grew mainly due to increased volumes in derivatives and higher contribution from OTC FX.
• Average fees per contract for equity, currency, and commodity derivatives increased to S$1.51 (FY21: S$1.34).
• Data, Connectivity, and Indices (DCI) revenue grew 3% y-o-y to S$147.4m on higher data subscriptions and an increase in subscription to co-location services. This segment makes up 13% of total revenue.

SGX Management’s Outlook.

• Read more at SGinvestors.io.

Rui Wen LIM DBS Group Research | Tabitha FOO DBS Research | https://www.dbs.com/insightsdirect/ 2022-08-19 SGinvestors.io

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