SGX Group Results For The Financial Year Ended 30 June 2004 - SGX Group Achieves Record Profit Of S$133.0 Million For FY2004 Record Year For Securities Business, Healthy Growth In Foreign Listings And Asian Derivatives Contracts

• Operating revenue of s$316.3 million, a record
• Net profit of s$133.0 million, record and best-ever
• Operating expenses down 9.9% to s$149.9 million
• Total gross dividends of 13.5 cents per share for the financial year
  • Final gross dividend of 4.075 cents per share
  • Special gross dividend of 6.5 cents per share
• Interim gross dividend of 2.925 cents per share*, paid in february 2004
  *The interim dividend for fy2004 has been regressed at the tax rate of 20%

Singapore Exchange Limited (SGX) today announced its audited financial results for the financial year ended 30 June 2004. The Group registered a record profit of S$133.0 million, which represents an increase of 731.0% over the last financial year.

Financial Highlights of Audited FY2004 Results – 1 July 2003 to 30 June 2004

NM = Not Meaningful

Results for the financial year ended 30 June 2004

SGX recorded S$133.0 million net profit after tax and minority interests for the financial year ended 30 June 2004, compared to S$16.0 million for the previous financial year ended 30 June 2003.

Total operating revenue rose 44.8% to S$316.3 million, compared to the previous financial year while total operating expenses dropped by 9.9% to S$149.9 million. Operating profit for the financial year amounted to S$166.4 million, compared to S$52.1 million for the previous financial year.

In the fourth quarter of FY2004, operating profit amounted to S$39.6 million, compared to S$15.0 million for the previous corresponding quarter. The Group generated operating revenue of S$71.3 million for 4Q FY2004, compared to S$63.8 million for 4Q FY2003. The 11.8% increase was mainly due to the increase in revenue from the Securities and Derivatives Markets.

Results for the quarter ended 30 June 2004

In the Securities Market, trading value increased 18.9% to S$41.0 billion in 4Q FY2004 from S$34.5 billion in 4Q FY2003. Securities clearing fees increased 19.0% to S$26.1 million from S$21.9 million between the two periods. The corresponding trading volume decreased 18.3% to 39.3 billion from 48.1 billion, reflecting a shift in activity to higher value denominated securities.

In the Derivatives Market, net derivatives clearing revenue rose 17.4% to S$13.762 million in 4Q FY 2004 despite a decrease in trading volume of 11.2% to 8.49 million contracts. The pick up in our trading activity for Asian derivatives has helped mitigate the impact of the decline in Eurodollar trading volumes. In 4Q FY2004, Asian equity derivatives, which have a higher profit margin, contributed 51% of total contracts traded, compared to 34% in 4Q FY2003.

Proposed final and special dividends

SGX declared a final gross dividend of 4.075 cents per share. An interim gross dividend of 2.925 cents per share was paid for the half year ended 31 December 2003. The final dividend brings the full year gross dividend to 7 cents per share. SGX proposed that it will pay a special gross dividend of 6.5 cents per share for the financial year. Subject to shareholders' approval at the Annual General Meeting on 17 September 2004, both the final dividend and special dividend will be paid on 6 October 2004.

Mr Hsieh Fu Hua, SGX CEO commented, "We have performed exceptionally well this year, on the back of increased trading activity. Our profits have seen a sharp increase while operating expenses have come down by 9.9%. The surge in securities trading volume to 251.7 billion shares is more than double the previous financial year and we have clearly seen the positive effect on our revenue and net profit, both new record highs for the SGX Group.

"Our Derivatives Market continues to weather the storm of competitive pressures stemming from more prevalent use of electronic trading. Meanwhile, the pick up in our trading activity for Asian derivatives contracts also helped mitigate the impact of the Eurodollar challenges on our derivatives revenue.

"We are also encouraged by the healthy growth of our stable and derivatives revenues, which now effectively covers 86% of our costs. We also saw significant growth in the number of new listings to 70, compared with 45 last financial year."

He added, "Going forward, we will grow and develop our domestic market and at the same time position SGX as an Asian hub for foreign listings and Asian derivatives."

For the FY 2004 Full Year Results click here.