Singapore Exchange Annual Report 2013

Singapore Exchange (SGX) released its financial results for the year ended 30 June 2013 (FY 2013) recently. This report covered the period from 1 July 2012 to end 30 June 2013.

SGX’s performance for current financial year was better than the year before. This financial year had the best performance since FY 2008.

Operating revenue rose 10.0 per cent to $715 million. (Last Year: $648 million). Revenue was 10.0% higher primarily due to a 23% increase in Derivatives revenue to $200.8 million (LY: $163.2 million) and a 9% increase in Securities revenue to $269.6 million (LY: $248.5 million).

The operating environment for FY 2013 was better than previous year. Securities daily trading value of $1.46 billion (LY: $1.32 billion) and turnover velocity of 52% (LY: 53%).

Net profit after tax increased by 15.1 per cent to $335 million (LY: $292 million).

Return on Equity (ROE) increased by 3.8 percentage points to 39.0 per cent (LY: 35.2%). Earnings per share increased by 15.0 per cent to 31.4 cents (LY: 27.3 cents).  Out of earnings, total dividend to be paid is 28 cents per share (LY: 27 cents). This translates into 89.1 per cent of profit (LY: 98.8%).

The company has a policy of distributing no less than 80 per cent of profit as dividend. According to plan, for this financial year FY2013, SGX intended to pay base dividend of 4 cents for first three quarters (total 12 cents) plus 16 cents as final dividend. Total dividend is minimum 28 cents or higher if net profit for new financial year shoot up suddenly and 80% dividend payout translates to more than 28 cents. SGX kept its promise in proposing the final dividend.

SGX share price is currently trading at $7.65. 52-week high was $7.85 and 52-week low was $6.50. Dividend yield (at 28 cents) based on $7.65 is 3.6%.

Looking at the business in SGX, the exchange is the only one in Singapore. It will perform well when global economies recover in longer term and investors are increasingly trading both in securities and derivatives segments of its business.

Copyright © 2013, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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