SGX reports FY2020 net profit of S$472 million

Boon Chye, Chief Executive Officer of SGX, said, “Risk management activities could grow from continued uncertainty as geopolitical tensions between US and China escalate, and global economies recover from the COVID-19 pandemic at differing pace”.

SINGAPORE: Singapore Exchange (SGX) reported FY2020 net profit of S$472.0 million (S$391.1 million), with revenues of S$1,052.7 million (S$909.8 million). EBITDA stood at S$655.7 million (S$523.5 million), while earnings per share was 44.1 cents (36.5 cents).

The Board of Directors has proposed a final quarterly dividend of 8.0 cents per share, payable on 9 October 2020, for approval at the forthcoming annual general meeting. Barring unforeseen circumstances, the annualised quarterly dividend going forward will be 32 cents per share, an increase of 7%. The higher quarterly dividend is in line with our policy to pay a sustainable and growing dividend over time, consistent with our long-term growth prospects.

Loh Boon Chye, Chief Executive Officer of SGX, said, “We achieved a strong performance in FY2020 with double-digit top line growth across all business units, leading to our revenue crossing the S$1 billion mark – our highest since listing. During the year, we expanded our product range and broadened our platform capabilities, while increasing the number of global customers adopting our multi-asset products and services. We also welcomed Scientific Beta to the SGX Group and announced the acquisition of BidFX, a cloud-based front-end trading platform for currencies, to expand our FX offering.”

“In the second half of FY2020, heightened volatility in global markets saw our customers intensify their risk management and investment activities on SGX. We focused on maintaining the robustness of our ecosystem and accessibility of markets amid the COVID-19 pandemic, while accelerating our growth plans. We are now in an even stronger position to meet the needs of our clients in this current low interest rate and uncertain environment. We will also have a new and expanded suite of derivatives products, well ahead of the expiry of our non-Singapore MSCI product licences in February 2021,” he added.

Commenting on the outlook for FY2021, Mr Loh said, “Market activity could ease following heightened volumes in the second half of FY2020. However, asset prices have recovered from recent lows, and a prolonged low interest rate environment may prompt investors to turn to capital markets for alternative returns. Risk management activities could grow from continued uncertainty as geopolitical tensions between US and China escalate, and global economies recover from the COVID-19 pandemic at differing pace. More than ever, we see clients turning to SGX to manage idiosyncratic Asian risks. Over the next few months, we will help our clients extract more benefits from our cross-asset approach, as they seek diverse solutions with higher returns, yield, cost efficiencies as well as with an ESG focus.”

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