Singapore Exchange Limited (SGX): 1H FY2026 Financial Analysis & Investor Takeaways

Singapore Exchange Limited (SGX) has released its condensed interim financial statements for the half year ended 31 December 2025. This article reviews SGX’s key financial metrics, performance trends, dividend policy, notable transactions, and offers actionable insights for investors.

Key Financial Metrics

*2H FY2025 figures are inferred based on annual trends and are not directly provided in the report. Comparisons may not be exact.

Segmental Revenue Breakdown

• Fixed Income, Currencies, and Commodities: \$197.1m (+14.0% YoY)
• Equities – Cash: \$226.1m (+16.2% YoY)
• Equities – Derivatives: \$182.4m (-5.3% YoY)
• Platform and Others: \$130.6m (+6.8% YoY)

Historical Performance & Trends

• SGX’s operating revenue continues its upward trajectory, supported by strong growth in Fixed Income, Currencies, Commodities, and Equities – Cash segments.
• Net profit growth was modest YoY, impacted by a \$15m goodwill impairment related to the Indices CGU. Excluding this, underlying profit growth would have been stronger.
• EPS remains resilient, showing incremental improvement quarter-on-quarter.
• Return on equity and net profit margins remain robust, supported by disciplined cost control and effective capital management.

Exceptional Items & Non-Operating Events

• Goodwill Impairment: \$15m impairment on Indices CGU due to continued underperformance of Scientific Beta Pte. Ltd. (SB).
• Impairment Losses on Investments: \$2.2m impairment on an associated company.
• Last Year’s Divestment: \$7.8m gain from divesting 20% interest in Philippines Dealing System Holdings Corp (Dec 2024).

Dividends & Capital Management

• SGX continues to reward shareholders with growing dividends, proposing an interim dividend of 11.0 cents per share (up 22% YoY).
• Share buybacks were executed, reducing treasury shares from 2,839k to 961k over the half year, supporting EPS and shareholder value.

Directors’ Remuneration

• Total key management remuneration for 1H FY2026 was \$8.5m, up from \$7.9m in 1H FY2025, including salaries, CPF contributions, and share-based payments.
• Directors’ fees totaled \$1.8m for the period.

Cash Flow and Balance Sheet Highlights

• Net cash generated from operating activities: \$363.7m (vs \$379.1m last year).
• Net cash from investing activities: \$446.0m, boosted by proceeds from FVPL financial assets.
• Total assets: \$4.16bn; Net assets: \$2.29bn.
• SGX remains highly liquid with \$1.67bn in cash and cash equivalents.

Corporate Actions & Notable Events

• Share Buybacks: 2,031,000 shares repurchased in FY2025 for \$26.3m, now held as treasury shares.
• Medium Term Notes: \$621.5m outstanding notes (USD and SGD issues).
• No mention of IPOs, fundraising, or major asset sales in the current period.
• No major legal, regulatory, or environmental events disclosed.

Chairman’s Statement

“In the opinion of the directors, the accompanying condensed statement of financial position of the Company as at 31 December 2025 and changes in equity of the Company for the half year then ended, the consolidated condensed statement of financial position of the Group as at 31 December 2025, the consolidated condensed income statement and comprehensive income statement, changes in equity and cash flows of the Group for the half year then ended and other explanatory notes, are prepared, in all material respects, in accordance with Singapore Financial Reporting Standards (International) 1-34, Interim Financial Reporting.”

The tone is neutral and procedural, focused on compliance rather than forward-looking optimism or caution.

Outlook & Risks

• SGX’s business is not materially affected by seasonal or cyclical factors.
• Impairments in the Indices segment are noteworthy, but core business segments are performing strongly.
• Dividend growth and share buybacks signal management confidence in future cash flows.
• Management has not highlighted significant macroeconomic or regulatory risks in the current report.

Conclusion & Investor Recommendations

Overall Financial Performance: SGX delivered solid revenue, profit, and dividend growth in 1H FY2026, offset slightly by non-recurring goodwill and investment impairments. Core business operations continue to expand, supported by strong cash flow and prudent capital management. The balance sheet remains robust, and shareholder returns are rising.

• If you currently hold SGX shares: The financial results reaffirm SGX as a stable, income-generating investment with resilient earnings and growing dividends. Hold or accumulate, especially if seeking defensive exposure in your portfolio.
• If you do not currently hold SGX shares: SGX presents an attractive entry point for investors seeking stable returns, capital protection, and dividend growth. Consider initiating a position, particularly if your portfolio lacks exposure to financial infrastructure or regional market operators.

Disclaimer: This analysis is based solely on the attached SGX financial report for 1H FY2026. It does not constitute investment advice and does not consider your individual financial situation. Investors should conduct their own due diligence or consult a qualified advisor before acting on any recommendation.

View SGX Historical chart here