SGX ekes out record high full-year profit despite 2.6% decline in H2

[SINGAPORE] Singapore Exchange (SGX) reported its highest-ever full-year revenue and net profit since listing on Friday (Aug 8). This milestone comes amid a 2.6 per cent decline in net profit for the second half ended June 2025, which fell to S$308 million from S$316.3 million a year earlier.

“FY 2025 was a defining year for SGX, marked by our strongest performance on record,” said chief executive officer of the bourse, Loh Boon Chye, at the financial results briefing on Friday.

He attributed the growth to disciplined execution of the group’s multi-asset strategy, deeper client engagement, and targeted innovation across its product offerings.

SGX’s chief financial officer, Daniel Koh, presenting the group’s financials for the first time since officially stepping into his role last December, said the group delivered strong and sustained business growth across all operating segments.

This reinforces its position as the “trusted multi asset platform for clients – raising capital, seeking investment opportunities and managing risks,” he said.

“Steady dividend increase”

“Given SGX’s confidence in its long-term, sustained prospects, the board has proposed a steady dividend increase of S$0.25 every quarter from FY2026 to FY2028,” said Koh.

It has also proposed a final quarterly dividend of S$0.105 a share, up from S$0.09 per share in the same quarter the year before. If approved, total dividends for FY2025 will stand at S$0.375, representing an annualised increase of 8.7 per cent.

The proposed final quarterly dividend will be payable on Oct 27, after approval at the upcoming annual general meeting.

Meanwhile, earnings per share (EPS) for the half-year period stood at S$0.288, down from S$0.296 for H2 FY2024.

Operating revenue for H2 rose 4.4 per cent to S$688.4 million from S$639.4 million in the corresponding period a year before.

Net profit for the full year of the Singapore bourse stood at nearly S$648 million, an increase of 8.4 per cent from S$597.9 million in FY2024. This translates to a full-year EPS of S$0.606. 

Operating revenue and expenses rise

Operating revenue for FY2025 was up 11.3 per cent to S$1.37 billion from S$1.23 billion in the previous financial year.

The growth in operating revenue was achieved on the back of an 8.6 per cent increase in fixed income, currency and commodities net revenue to S$321.6 million, accounting for 24.8 per cent of total net revenue.

This was in turn driven by trading and clearing revenue increasing 17.8 per cent, as over-the-counter foreign exchange (OTC FX) net revenue rose 25.3 per cent, and was offset by treasury and other revenue declining 20.4 per cent.

Cash equities rose by 18.7 per cent to S$392.7 million for the period, while platform and other revenue increased 3 per cent to S$238 million.

SGX’s chief executive Loh said that the group’s FX desk, has risen to rank among the top three exchange-backed OTC FX platforms, with room to grow further.

“Looking ahead, we are on track to achieve 6 per cent to 8 per cent growth in our group revenue (excluding treasury income),” he said.

SGX’s total adjusted expenses rose 1.6 per cent to S$542.8 million, up from S$534.3 million a year earlier. The increase was mainly due to a S$9 million rise in staff costs, driven by a higher variable bonus provision in line with improved profitability.

The group clarified that variable staff costs remain performance-linked, and it is reviewing its internal processes to manage staffing more effectively. It is also looking to manage expenses with discipline.

Strong cash equities performance

SGX is gaining strong momentum in its cash equity business, with its initial public offering pipeline reaching its most robust level in years, Loh said.

“Through our efforts to deepen market participation and the tailwinds from the MAS equity review group to boost currency, we started to see a significant improvement in stock market liquidity and volumes, not just in the index stocks, but also in the small and mid cap (companies),” he added.

Loh also noted that the group has been curating a diverse product suite designed to help investors diversify their portfolios across asset classes, geographies, and themes. For example, SGX has expanded its Singapore depository receipts offering by adding more names to the suite.

He said the group is entering FY2026 with “readiness and a clear growth agenda”.

“While market conditions may stabilise following the earlier economic uncertainty and volatility, capital flows into Asia are likely to remain strong, and we are well positioned to capitalise on this across regions and products,” Loh added.

For FY2026, SGX said in its Friday bourse filing that it will invest in key strategic areas, including capability building and technology enhancements, where expenses are expected to increase by 4 to 6 per cent, and capital expenditure is expected to come in at S$90 million to S$95 million. This comes with investments in long-term scalability to achieve resilience for its technology systems and infrastructure.

The group also noted in its statement that it is collaborating with the Monetary Authority of Singapore and key ecosystem partners to strengthen the competitiveness of the Singapore equities market.

“We are positive about our initial public offering pipeline and its near-term outlook. Concurrently, we are exploring the development of new categories of structured products to broaden our retail and institutional offerings,” SGX said.

Shares of SGX ended on Thursday 0.4 per cent or S$0.06 up at S$16.34, before its results release.