Singapore Exchange (S68) H1 2025 earnings summary

Executive summary

• Achieved record first-half FY2025 results with net revenue up 15.6% year-over-year to S$646.4 million and adjusted NPAT up 27.3% to S$320.1 million, driven by broad-based growth across all segments and strong execution of a multi-asset strategy.

• Cash equities SDAV rose 31.2% to S$1.3 billion, derivatives DAV increased 20.1%, and OTC FX ADV up 35.4%, reflecting elevated investor interest and global market volatility.

• Maintained cost discipline with adjusted expenses flat year-over-year; staff costs rose due to higher variable bonuses, while technology and other expenses remained stable or declined.

• Interim quarterly dividend increased to 9.0 cents per share, totaling 18.0 cents for 1H FY2025, a 6% increase, in line with mid-single-digit CAGR dividend growth target.

• Management remains optimistic for the medium term, with expenses and capex expected at the lower end of FY2025 guidance.

Financial highlights

• Net revenue rose 15.6% year-over-year to S$646.4 million, with all segments contributing to growth.

• Adjusted NPAT increased 27.3% to S$320.1 million; adjusted operating profit margin improved by 6.1 percentage points to 54.1%.

• Adjusted EPS grew 27.3% to 29.9 cents; interim dividend per share increased 5.9% to 18.0 cents.

• Cash equities net revenue up 22.3% to S$192.6 million; SDAV up 31.2% to S$1.3 billion.

• Derivatives net revenue up 21.6% to S$177.4 million; overall derivatives daily average volume up 20.1%.

• OTC FX net revenue up 35.7%; average daily volume up 35.4% to $136 billion.

• FICC segment revenue up 13.4% to S$159.1 million, now 25% of total revenue.

• Platform and Others net revenue up 1.7% to S$117.3 million; connectivity revenue up 8.7%.

Outlook and guidance

• Full-year expenses and capex expected at the lower end of guidance (2%-4% increase in expenses, S$70-75 million capex).

• Capex will trend up as trading and clearing platforms and data centers are modernized, but remain below 7% of group revenue over a cycle.

• Medium-term revenue growth target (excluding Treasury income) of 6%-8% reaffirmed; optimistic on IPO pipeline and market leadership.

• Focus on expanding multi-asset offerings, client acquisition, and strengthening the global network.

• Dividend per share expected to grow at mid-single-digit CAGR, subject to earnings growth.