Singapore Exchange - DBS Research 2023-02-09: 1HFY23 Largely In Line With Expectations

• SGX (SGX:S68)'s 1HFY23 revenue grew 10% y-o-y to S$571m, driven by strong growth in FICC and Equities Derivatives revenue but partially offset by Equities Cash and DCI revenue.
• FICC revenue increased 35% on the back of a resilient performance in Commodities and the consolidation of MaxxTrader (excluding MaxxTrader, FICC revenue grew 25% on a like-for-like basis).
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• SGX's 1HFY23 net profit came in at S$285m, an impressive 30% growth from 1HFY22, but including non-cash adjustments from investments, adjusted net profit was S$236m, a 7% y-o-y increase.

Mixed performance across asset classes with derivatives remaining resilient.

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• Currencies and commodities derivatives trading revenues improved 29% y-o-y to S$109m on higher transaction volumes and contribution from OTC FX.
• Equities derivatives trading revenue increased 11% y-o-y to S$145m due to higher average fees from SGX Nifty 50 Index futures and SGX FTSE China A50 Index futures contracts and treasury income increased 126% y-o-y to S$28m on higher net yield.
• DCI revenues remained flattish y-o-y at S$73m due to higher revenue from co-location subscription services, but offset by lower revenue from index business.

Updates on Scientific Beta and BidFX.

• Read more at SGinvestors.io.

Rui Wen LIM DBS Group Research | https://www.dbs.com/insightsdirect/ 2023-02-09 SGinvestors.io

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