SINGAPORE (Apr 24): Singapore Exchange (SGX) has reported earnings of $137.5 million for 3QFY2020 ended March, some 38% higher than its earnings of $99.7 million a year ago.

Operating revenue rose 29% to $295.8 million in 3Q2020, from $228.8 million a year ago.

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“Our expanded geographical footprint has helped to support our US and European clients trading outside of Asian trading hours, whose activity has grown to 20% of total derivatives volumes,” says Loh Boon Chye, CEO of SGX.

Equities - Derivatives revenue increased 24% to $106.0 million from last year’s $85.3 million, with higher contributions from equity, data, connectivity, and indices, as well as commodities. These are due to increased volumes in the Nikkei 225, MSCI Taiwan, and Nifty 50 index futures contracts, as well as the consolidation of revenues from the acquisition of Scientific Beta.

Total expenses increased 20% or $22.4 million to $132.9 million, up from last year’s $110.6 million. This was mainly due to higher staff costs from Scientific Beta, costs associated with the SGX Care Package for COVID-19 related support, as well as an increase in processing and royalties expenses. The increase was partially offset by decreased technology expenses from lower costs from system maintenance and rental due to the adoption of the new accounting standard by the Singapore Financial Reporting Standards (SFRS).

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SGX has declared an interim dividend of 7.5 cents per share -- the same as a year ago -- which will be paid out to unitholders on May 13.

Looking ahead, Loh says “elevated levels of volatility” are likely to be prolonged due to the impact of Covid-19.

“Together, we will continue to enable efficient risk and portfolio management for investors and clients, and help businesses raise capital,” he says.

From July 1 (FY2021), SGX will adopt half-yearly financial reporting, with dividends still paid on a quarterly basis.

Loh adds, “We will also continue to publish our monthly market statistics reports which provide timely updates on our markets and products.” 

As of 9.10am, SGX shares are trading 29 cents lower, or down 2.9%, at $9.87.