SPXCF - Singapore Exchange Limited (SPXCF) Q2 2024 Earnings Call Transcript
2024-02-01 01:22:04 ET
Singapore Exchange Limited (SPXCF)
Q2 2024 Earnings Conference Call
January 31, 2024 08:00 PM ET
Company Participants
Dominic Lim - Head of Investor Relations
Ng Yao Loong - Chief Financial Officer
Loh Boon Chye - Chief Executive Officer
Lee Beng Hong - Head of Wholesale Markets and Platforms
Michael Syn - President
Pol de Win - Head of Global Sales and Origination
Conference Call Participants
Harsh Modi - JPMorgan Chase & Co.
Nick Lord - Morgan Stanley
Thilan Wickramasinghe - Maybank
Jovi Ho - The Edge Singapore
Presentation
Dominic Lim
Good morning, ladies and gentlemen, and also to those viewing online over the webcast system. Welcome to SGX Group's First Half FY2024 Results Briefing. This morning's agenda will kick off with a presentation of our financial highlights and performance by Mr. Ng Yao Loong, our CFO. This will be followed by a business update by our CEO, Mr. Loh Boon Chye. Following, which we will end off the briefing with a question-and-answer session with SGX's senior executives.
So without further delay, let me hand over the stage to our CFO, Mr. Loong, please.
Ng Yao Loong
A very good morning, and thank you for joining us for this half year results briefing. So our half year financial performance reflects the resilience of our multi-asset exchange amidst a challenging macroeconomic environment. We saw strong growth in currencies and commodities, which we'll talk about later. But as a Group, earnings wise, on an adjusted basis, it increased 6% to SGD251 million. This is a metric that we have been showing. Adjusted earnings gives a better reflection of our underlying performance as non-cash and one-off items are excluded. This improved earnings was driven by a 4% increase in revenue and a lower growth in expenses of 3%. As a result, we saw improvements in both operating margins and at the earnings level as well.
Now, let me run through the details of our financial performance. So this half, we continue to cement our position as the platform of choice for Asian access and portfolio risk management. So on the left, our derivatives franchise across the various asset classes grew 6% or SGD16 million more. As in aggregate, it contributes 45% of our Group revenue and includes both trading and clearing, revenue and the associated treasury income. So we saw robust volume growth from commodities and FX derivatives and also OTC FX. So commodities DAV or daily average volume increased almost 50%, volume increases across all commodities products.
Currency futures DAV grew 25%, mainly driven by our CNH contract. Our OTC FX business continue to see healthy growth as you can see from the chart on the right with ADV increasing 46% to US$100 billion....
Singapore Exchange Limited (SPXCF) Q2 2024 Earnings Call Transcript