Profit attributable to shareholders decreased to $2,216 million in the first six months of 2012 against $2,584 million for the same period in 2011. The drop was mainly due to lower turnover- related income and higher operating expenses, but partly offset by an increase in net investment income.
Economic uncertainty around the world and the sovereign debt problems in Europe caused market sentiment to remain weak in the first half of 2012. Although the average daily turnover on the Cash Market dropped by 23 per cent, income affected by market turnover only fell 11 per cent due to higher depository, custody and nominee services fee income in the first six months of2012 compared with the corresponding period in 2011. Net investment income rose 63 per cent, mainly due to higher net fair value gains on investments and a rise in interest income due to increases in bank deposit rates.
Operating expenses increased over the same period in 2011 mainly due to higher staff costs and premises expenses.
The Group incurred $110 million of expenses, mainly on professional fees, for the proposed acquisition of the LME Group.
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