SGX Group's FX Revenue Surges 47% as FY22 Brings S$456M in Net Profit

The Singapore Exchange Group (SGX), an investment holding company located in Singapore, reported an adjusted net profit of S$456.4 million for its 2022 fiscal year.

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This is a 2% increase from the S$446.9 million net profit posted in the same period last year.

SGX disclosed these figures on Thursday in its published FY2022 financial summary.

The SGX Group includes subsidiaries such as the Baltic Exchange, BidFX, MaxxTrader, Climate Impact X and Energy Market Company, among others.

Meanwhile, the Groups total revenue grew to S$1,099.0 million, which is a growth of 4% from the S$1,056.0 million recorded in the fiscal year 2021. The group said this is its highest revenue performance since its listing.

“Our record-high revenue was driven by higher derivatives volumes across equities, currencies and commodities, as our global customers increasingly used our multi-asset platform to navigate market uncertainties,” Loh Boon Chye, the Chief Executive Officer of SGX Group, explained.

Additionally,SGX Group‘s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) jumped 2% to S$637.8 million from last year’s $$623.9 million.

The firm also said its Board of Directors has proposed a final quarterly dividend of 8.0 cent per share, which is the same as last years price, and awaits the approval of stakeholders at its next annual general meeting. The dividend is payable on October 21, 2022, it said.

Strong Forex Performance

According to the published FY22 financial summary, over-the-counter (OTC) forex trading revenue now makes up 5% of SGX Groups total revenue.

The Group said its OTC forex revenue reached S$58.4 million in the fiscal year 2022, which is up 47% from S$39.7 million a year ago.

Additionally, OTC FX average daily volume (ADV) surged 64% year-over-year in FY2022, posting US$70.6 billion.

In fact, the volume “is on track to achieve an ADV of US$100 billion in the medium term,” the exchange company said.

Furthermore, SGX Group noted that its acquisitionof off-the-shelf forex trading solution, MaxxTrader, in January, and input from its cloud-based forex market execution management system, BidFX, contributed to the growth in its forex revenue.

Recall that BidFX in its first-year reporting financials after its acquisition by SGXreported a turnover of $29.4 million with an operating profit of $3.5 million.

Finance Magnates reported that the turnover is comparatively higher than the $12 million revenue the electronic forex trading solution provider generated during its first six months.

“Our fixed income, currencies and commodities (FICC) business remains a key growth engine and is expected to deliver mid-teens percentage revenue growth in the medium term,” Chye said, speaking on the results of SGX Groups just-ended fiscal year.