The Singapore Exchange (SGX) posted a 16 percent fall in net profit to S$83 million for the first quarter in FY2017, year-on-year, reflecting lower levels of market activity. The 16-year-old stock exchange had reported a net profit of S$93 million in the corresponding quarter last fiscal.
Revenues dropped 13 percent to S$190.8 million from S$219.6 million in the year-ago period while operating profit came 17 percent lower at S$97.2 million.
SGX's financial year is from July 1 to June 30.
"Our first quarter performance this year reflects lower levels of market activities, compared with a more volatile market a year earlier," SGX CEO Loh Boon Chye said and warned of low trading volumes ahead.
"Participants reacting and adjusting to slowing global economic growth, political uncertainties and implications of Brexit on the European economy could result in a period of relatively subdued trading volumes. We expect full year FY2017 operating expenses to be between $420 million and $430 million, and technology-related capital expenditure to be between $65 million and $70 million," he said in a statement.
Listing income rose 3 percent as the number of listings was a tad more at eight compared to seven in the corresponding quarter last fiscal. The quarter saw 139 bond listings raising $59.4 billion, compared to 97 listings raising $41.6 billion a year earlier.
The board declared an interim dividend of 5 cents per share, payable on November 3, 2016, in line with the stated dividend policy.