- Singapore Exchange (SGX)'s FY24 core-NPAT was in-line with Street and ahead of MIBG. Derivatives drove growth, particularly commodities and currencies as clients managed risks amidst major volatility.
Strong franchise, but low pay out.
- - Read this at SGinvestors.io -
- In the meantime, dividends continue to disappoint, especially given capacity to pay more.
Derivatives continues to deliver
- 2HFY24 FICC saw a 17.6% y-o-y revenue growth. In FY24 this segment saw volumes expand +42% y-o-y pointing to the strength of the platform for risk management amidst global volatility. We think with increased China uncertainty, US elections and rate cut variability, this segment should continue to deliver.
- - Read this at SGinvestors.io -
- Nevertheless, SGX's equity derivatives revenues fell -8.1% y-o-y in 2HFY24. Competition, especially for contracts such as the Nikkei 225 seem to be rising (FY24 volumes fell -22.5% y-o-y). This needs to be watched.
- We forecast FICC to grow +14% y-o-y in FY25E.
Cash equities rejuvenation too early to call
- Read more at SGinvestors.io.
