SGX records all-time highs in revenue, net profit for FY2026

[SINGAPORE] Singapore Exchange (SGX) recorded a 7.8 per cent rise in its FY2026 net profit to S$698.4 million on Thursday (Aug 6), driven by gains across all operating segments.

Net revenue rose 13.9 per cent to S$1.5 billion, while earnings per share (EPS) increased to S$0.653. SGX said FY2026 marked a record year for both revenue and net profit.

On an adjusted basis, which excludes certain non-cash and non-recurring items that have less bearing on the group’s operating performance, net profit climbed 24.6 per cent to S$759.5 million.

Adjusted earnings before interest, tax, depreciation and amortisation (Ebitda) rose 17.9 per cent to S$980.6 million from S$832 million, while adjusted EPS increased to S$0.71 from S$0.57.

SGX also posted a 15.5 per cent increase in net profit for the second half ended June 2026, which rose to S$355.7 million from S$308 million in the year-ago period.

Operating revenue for H2 rose 19.6 per cent to S$823.3 million from S$688.4 million in the corresponding period a year before.

“Growth was broad-based, with our cash equities business leading the way and our foreign exchange and commodities pillars reaching new volume highs” said Loh Boon Chye, chief executive officer of the bourse operator, adding that “FY2026 was another standout year”.

SGX chief financial officer Daniel Koh, who presented the group’s full-year financial results at the SGX Auditorium on Thursday evening, said the board had proposed a one-off additional dividend of S$0.125 a share following capital recycling gains during the year, on top of the previously guided fourth-quarter dividend. 

“This brings FY26’s total dividend to S$0.57 per share, representing a 52 per cent increase from the last financial year,” he added.

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The SGX board proposed a final quarterly dividend of S$0.115 a share, up from S$0.105 in the year-ago period. Both the final quarterly dividend and the one-off additional dividend are payable on Nov 10.

Koh also noted adjusted expenses in FY2026 rose by 5.5 per cent as the group increased resources to support growth initiatives. 

“Total staff costs increased by S$27 million in both fixed and variable portions due to merit increments, higher headcount and higher profitability,” he added.

Total expenses rose 6.4 per cent to S$591.1 million in FY2026 from S$555.3 million the previous year. Higher staff costs and other operating expenses were partly offset by lower depreciation and amortisation.

Fixed staff costs increased 9.3 per cent to S$210.8 million from S$192.9 million, while average headcount rose to 1,182 from 1,138. Variable staff costs climbed 13.4 per cent to S$122.5 million from S$108.0 million.

Other expenses increased 3.6 per cent to S$175.7 million from S$169.5 million. This was mainly due to higher technology costs and professional fees but were partly offset by lower miscellaneous expenses.

Koh added that FY27 capital expenditure will increase to around S$100 million. This will reflect “targeted investments in product innovation, including the expansion of SGX’s FX franchise and gold initiatives, platform modernisation and enhancing enterprise capabilities”, he said.

“In line with these, FY27 expenses are expected to increase by 6 to 8 per cent as we continue to invest in technology, technology and talent to drive growth,” Koh added.

“Well positioned”

Looking ahead, SGX said it remains “well positioned” to deliver its medium-term guidance of 6 to 8 per cent group revenue growth, excluding treasury income, alongside a low to mid-single-digit increase in expenses.

During the results briefing, Loh noted that securities daily average value grew significantly across investor and stock segments, with retail participation reaching a five-year high. Institutional interest also broadened beyond constituents of the Straits Times Index, he added.

“FY2026 was an exceptional year for our stock market, marked by improving participation, liquidity and trading activity,” said Loh.

The FY2026 results were broadly in line with analysts’ expectations and came against a backdrop of strengthening market activity.

RHB Group Research raised its FY2026 to 2028 earnings forecasts after incorporating stronger-than-expected June market data into its model. In a Jun 26 report, it forecasted total turnover of S$1.474 billion and recurring net profit of S$744 million. Meanwhile, DBS forecasted total turnover of S$1.55 billion and net profit of S$736 million for FY2026.

However, in a Jun 24 report, it cautioned that slower-than-expected business growth across various asset classes poses downside risks to its estimates.

RHB analyst Shekhar Jaiswal said SGX’s divestment of Scientific Beta was a positive development as it removes a loss-making subsidiary.

SGX, which acquired a 93 per cent stake in Scientific Beta for 186 million euros in January 2020, announced on Jul 8 that it would sell the loss-making index provider to Stoxx for 23 million euros (US$26.5 million).

Scientific Beta recorded a net loss of around S$15 million, including goodwill impairment, in SGX’s first half of FY2026.

Commenting on its sale during the results briefing, Loh said the group’s original investment in Scientific Beta was intended to grow its adjacent businesses. However, he noted that the research-focused index provider’s high-quality factor indices served a relatively niche customer segment.

As SGX continues to focus on expanding its platforms across asset classes and maintaining disciplined capital allocation, the group decided that Scientific Beta would be better positioned under its new owner to “continue in their journey of research-based methods”, Loh added.

At market close on Thursday, SGX’s counter rose by 1.3 per cent or S$0.31 to S$24.32 with some 3.3 million shares changing hands.