- 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.
- - Read this at SGinvestors.io -
- 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.
- - Read this at SGinvestors.io -
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.
