Singapore Exchange Posts Strong Performance Despite Treasury Headwinds February 13, 2026

Financial Results Exceed Expectations

Singapore Exchange Limited (SGX) reported a solid first-half FY26 results, meeting analysts’ expectations with revenue and earnings reaching 51% and 50% of full‑year forecasts respectively. The exchange operator demonstrated resilience by achieving core operating revenue growth that successfully offset declining treasury income, highlighting the strength of its diversified business model.

Core Business Segments Drive Growth

SGX’s performance was anchored by robust growth across its primary trading segments. The Fixed Income, Currencies and Commodities (FICC) division delivered impressive 14% year-on-year growth, primarily driven by continued expansion in commodity and currency derivatives volumes alongside higher over-the-counter foreign exchange revenue. The equities segment also contributed positively with 6% revenue growth, fueled by a surge in Securities Daily Average Value (SDAV) that compensated for lower equity derivatives volumes.

However, treasury income presented headwinds, declining 14% year-on-year due to lower average yields on margin deposits as interest rates decreased. Despite this challenge, SGX maintained strong shareholder returns, increasing its interim quarterly dividend per share by 22% to 11 cents, bringing the first-half dividend to 21.75 cents, representing a 21% year-on-year increase.

Investment Outlook and Strategic Positioning

SGX operates as Singapore’s primary securities and derivatives exchange, serving as a critical financial infrastructure provider in Asia. The company has established strong market positioning through its comprehensive trading, clearing, and settlement services across multiple asset classes.

The exchange’s strategic focus on digitalisation and platform development continues to generate operating leverage benefits. Currency and commodities trading revenue increased 18% year-on-year, with currency derivatives volumes rising 18% and commodity derivatives volumes surging 24%. The OTC FX business maintained stable growth with revenue up 8% and average daily volume reaching US$180 billion, representing a 32% increase.

Looking ahead, SGX is posed to benefit from several tailwinds including Equity Market Development Programme inflows, potential trade policy uncertainty from the Trump administration, and the Federal Reserve’s monetary easing cycle, all of which should support volume growth through 2026.

Research Recommendation

Phillip Securities Research maintains an ACCUMULATE recommendation with a revised target price of S$18.30, increased from the previous S$16.90. The target price reflects a 28x price-to-earnings ratio based on FY26 estimates, up from the previous 26x multiple, positioned at two standard deviations above the five-year mean valuation.

Key Takeaways

Q: What was SGX’s dividend performance in the first half of FY26?

A: SGX increased its interim quarterly dividend per share by 22% to 11 cents. The total first‑half dividend amounted to 21.75 cents, representing a 21% year‑on‑year increase. The company maintains guidance to raise dividends by 0.25 cents per quarter until FY28.

Q: Which business segments drove SGX’s revenue growth?

A: FICC revenue grew 14% year-on-year led by commodity and currency derivatives volumes and higher OTC FX revenue, while equities revenue rose 6% from increased SDAV, partially offset by lower equity derivatives volumes.

Q: What challenges did SGX face during the reporting period?

A: Treasury income declined 14% year-on-year due to lower average yields on margin deposits as interest rates fell, creating headwinds for overall earnings momentum.

Q: How did SGX’s OTC FX business perform?

A: OTC FX revenue increased 8% year-on-year with average daily volume rising 32% to US$180 billion. SGX maintains guidance that OTC FX will contribute mid-to-high single digits to EBITDA in the medium term.

Q: What is Phillip Securities Research’s recommendation for SGX?

A: Phillip Securities Research maintains an ACCUMULATE recommendation with a target price of S$18.30, increased from S$16.90, based on 28x price-to-earnings ratio for FY26 estimates.

Q: What factors are expected to support SGX’s future performance?

A: Expected drivers include Equity Market Development Programme inflows, Preisdent Trump’s administration trade policy uncertainty, the Fed’s monetary easing cycle boosting volumes in 2026, and operating leverage from rising SDAV offsetting treasury headwinds.

Q: How did currency and commodities trading perform?

A: Revenue for these segments increased 18% year‑on‑year, with currency derivatives volumes up 18% and commodity derivatives volumes surging 24%.

Singapore Exchange Posts Strong Performance Despite Treasury Headwinds

This article has been auto-generated using PhillipGPT. It is based on a report by a Phillip Securities Research analyst.

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About the author

Glenn Thum

Glenn covers the Banking and Finance sector. He has had 3 years of experience as a Credit Analyst in a Bank, where he prepared credit proposals by conducting consistent critical analysis on the business, market, country and financial information. Glenn graduated with a Bachelor of Business Management from the University of Queensland with a double major in International Business and Human Resources.

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