Singapore Exchange Posts Record Earnings on Retail and Institutional Surge

Record Performance Across the Board

Singapore Exchange closed its fiscal year ending June 2026 with net profit climbing to S$698.4 million, a jump that reflects momentum across every operating division. Total revenue reached S$1.5 billion, marking the highest figures in the bourse's history. Earnings per share settled at S$0.653, while adjusted net profit, which strips out non-recurring items, rose to S$759.5 million.

The operator attributed the performance to strong turnover in cash equities, where retail investors returned in numbers not seen in five years. Institutional flows also diversified, moving beyond the traditional Straits Times Index names into a wider array of listed securities. Foreign exchange and commodities desks hit volume records, underscoring the exchange's expanding reach beyond its home market.

Dividend Boost and Capital Recycling

The board proposed a final quarterly dividend of S$0.115 per share, alongside a one-off payment of S$0.125 per share tied to capital recycling gains realized during the year. Combined, total dividends for FY2026 amount to S$0.57 per share, a 52 percent increase over the prior fiscal year. Both the regular and special dividends will be paid in November.

Chief financial officer Daniel Koh noted that the special payment reflects proceeds from asset divestments, including the sale of Scientific Beta to Stoxx for 23 million euros in July. Singapore Exchange had acquired a 93 percent stake in the index provider for 186 million euros in early 2020, but the unit recorded a net loss of around S$15 million, including goodwill impairment, in the first half of FY2026. CEO Loh Boon Chye explained that while the acquisition was intended to support adjacent businesses, the research-focused factor indices served a niche segment that did not align with the exchange's broader platform strategy.

Rising Costs to Support Growth

Total expenses increased to S$591.1 million, up from S$555.3 million a year earlier. Fixed staff costs climbed to S$210.8 million, while variable compensation rose to S$122.5 million, reflecting merit increases and higher headcount. Average staff numbers stood at 1,182, compared with 1,138 the previous year. Other operating expenses grew to S$175.7 million, driven by technology investments and professional fees.

For the fiscal year ahead, management expects expenses to rise between 6 and 8 percent as the exchange invests in product innovation, including an expanded foreign exchange franchise, gold initiatives, and platform modernization. Capital expenditure is forecast at around S$100 million.

Outlook and Analyst Reception

Singapore Exchange reiterated its medium-term revenue growth target of 6 to 8 percent, excluding treasury income, with expenses rising in the low to mid-single digits. The FY2026 results aligned closely with analyst projections. RHB Group Research had forecast total turnover of S$1.474 billion and recurring net profit of S$744 million, while DBS estimated revenue of S$1.55 billion and net profit of S$736 million.

RHB analyst Shekhar Jaiswal viewed the Scientific Beta divestment as a positive step, removing a loss-making unit from the group's portfolio. DBS cautioned in late June that slower growth across asset classes could pose downside risks to future earnings, though the exchange's diversified revenue streams and disciplined capital allocation provide a degree of resilience.

Market Reaction

Shares in Singapore Exchange rose 1.3 percent to close at S$24.32 on the day of the earnings release, with 3.3 million shares traded. The stock has benefited from sustained trading activity and investor confidence in the exchange's ability to capture flows across equities, derivatives, and fixed income.

The bourse's performance underscores a broader trend in Asian financial markets, where retail participation has rebounded following years of subdued activity. Singapore's position as a regional financial hub continues to attract both domestic and international capital, supported by a stable regulatory environment and deep liquidity pools. As the exchange expands its product suite and invests in technology infrastructure, it remains a bellwether for sentiment across Southeast Asian capital markets.