Singapore Exchange (S68) H2 2024 earnings summary

Executive summary

• FY 2024 revenue rose 3.1% to SGD 1.23 billion, with adjusted NPAT up 4.5% to SGD 526 million, reflecting stable growth led by strong performance in currencies and commodities.

• Multi-asset strategy diversified revenue, with FICC, equities, and derivatives each contributing about a quarter of total revenue.

• Adjusted operating profit margin was 50.7%, and adjusted NPAT margin was 42.1%.

• Board proposed a final quarterly dividend of 9.0 cents per share, up 5.9% year-over-year.

• Net profit attributable to equity holders increased 4.7% to SGD 597.9 million.

Financial highlights

• Commodities volumes surged 50.2% to 61.5 million contracts, mainly due to iron ore derivatives.

• OTC FX ADV surged 47% to US$111.1 billion, surpassing the $100 billion target ahead of schedule.

• Adjusted expenses increased 2.5% to SGD 604 million, mainly from higher staff and technology costs.

• Equity derivatives revenue declined 8% due to lower Nifty and Nikkei volumes; cash market revenue fell 2% on a 4% drop in traded volume.

• Net fair value gain of over SGD 100 million from revaluation of Trading Technologies investment.

Outlook and guidance

• Group revenue (excluding treasury income) targeted to grow 6%-8% CAGR in the medium term, led by low- to mid-teens % growth in OTC FX and derivatives.

• FY 2025 expenses expected to grow 2%-4%, with CapEx guided at SGD 70-75 million for modernization and upgrades.

• Focus on growing OTC FX EBITDA contribution from 3% to mid- to high single digits.

• Scientific Beta underperformance may lead to strategic repositioning and potential goodwill impairment.