SGX's 1HFY25 revenue of S$682mil and earnings of S$340mil were above our estimates, with 1HFY25 revenue and PATMI at 53%/55% of FY25e. The variance came from higher-than-expected Equities - Cash and - Derivatives revenue.
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FICC grew 14% y-o-y, led by continued growth in commodity and currency derivatives volumes, higher OTC FX revenue, and a recovery in listing revenue. Equities revenue recovered (+21% y-o-y) from a turnaround in SDAV and equity derivatives volumes, while fees remained stable.
Treasury income was flat y-o-y, we believe, due to higher average yields on margin deposits from a steepening yield curve being offset by a decline in margin balances.
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The Positives
FICC – Currency and Commodities grow again.
Currency and commodities trading and clearing revenue was the main contributor, rising by 23% in 1HFY25, led by increased currency derivatives volumes (+43% y-o-y) and commodity derivatives volumes (+15% y-o-y).
SGX’s OTC FX continued to surge, with revenue rising 36% y-o-y and headline average daily volume (ADV) rising 35% y-o-y in 1HFY25. 1HFY25 OTC FX headline ADV grew to US$136bn (1HFY24: US$100bn), surpassing SGX’s FY25 target of US$100bn early. However, SGX did not provide any new guidance for ADV targets and mentioned that the aim would be to maintain the current levels.
SDAV and derivatives volumes turnaround.
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
