HONG KONG, Oct. 20, 2023 /PRNewswire/ —
Highlights
Commenting on the results, Hong Kong Exchanges and Clearing Limited (HKEX) Chief Executive Officer Nicolas Aguzin said: "This was another good quarter of strategic progress for the Group, accompanied by strong headline financials. Quarterly revenue was up 18 per cent, core business revenue was up 9 per cent and profit attributable to shareholders was up 30 per cent compared with the 2022 comparable period.
Despite challenging global markets, these results reflect HKEX’s resiliency, the purposeful ongoing diversification of the business, our active management of costs and the team’s resolute focus on the execution of our strategy. Highlights included the continued health and growth in HKEX’s Derivatives Markets, the go-live of a new smart-contract settlement platform, HKEX Synapse in October, and the confirmed launch of FINI, Hong Kong’s new digitalised IPO settlement platform for later this quarter.
The macro backdrop remains fragile, but the business is in good shape and is well-positioned to capitalise on slowly improving market sentiment. Looking forward we will continue to place our customers at the heart of all that we do as we leverage our unique China connectivity and continue to strengthen the attractiveness and competitiveness of our markets and our offering."
Strategic Highlights
- ADV of derivatives contracts traded on HKFE, Bond Connect Northbound ADT and ADT of ETPs all reached record nine-month highs
- OTC Clear’s total clearing volume in Q3 2023 reached a record quarterly high
- Launch of HKEX Synapse on 9 October 2023, a new smart contract-powered platform, accelerating the settlement process for Stock Connect Northbound Trading
- Confirmed launch for FINI, Hong Kong’s new digitalised IPO settlement platform
- Consultation paper on GEM Listing Reforms published
- Introduction of block trading under Stock Connect announced
- The LME Group announced two key initiatives under its two-year Action Plan: extending the use of volume-weighted average prices to determine Closing Prices in its most liquid contracts; and the approval of the first fast track brand registration for nickel
Financial Highlights
- Q3 2023 revenue and other income of HK$5,084 million, up 18 per cent compared with Q3 2022 Core business revenue up 9 per cent against Q3 2022, attributable to the increase in net investment income from Margin Funds and Clearing House Funds, partly offset by lower listing fees
- Net investment income from Corporate Funds of HK$360 million, compared to a Q3 2022 loss of HK$46 million, driven by higher investment income from internally-managed Corporate Funds, and lower fair value losses on the externally-managed investment funds (External Portfolio) of HK$5 million (Q3 2022: losses of HK$148 million)
- Operating expenses up 1 per cent, attributable to higher staff costs and IT costs, partly offset by lower charitable donations and professional fees
- EBITDA margin of 74 per cent, 4 percentage points higher than Q3 2022
- Profit attributable to shareholders of HK$2,953 million, 30 per cent higher than Q3 2022
Key Financials
|
Q3 2023 HK$m |
Q3 2022 HK$m |
Change |
|
|
Revenue and other income |
|||
|
Core business revenue |
4,696 |
4,324 |
9 % |
|
Donation income of HKEX Foundation |
28 |
40 |
(30 %) |
|
Net investment income/(loss) of Corporate Funds |
360 |
(46) |
N/A |
|
5,084 |
4,318 |
18 % |
|
|
Operating expenses |
1,304 |
1,291 |
1 % |
|
EBITDA |
3,706 |
2,984 |
24 % |
|
Profit attributable to shareholders |
2,953 |
2,263 |
30 % |
|
Capital expenditure |
329 |
295 |
12 % |
|
Basic earnings per share |
$2.33 |
$1.79 |
30 % |
For more information, please refer to HKEX’s announcement here.