PSE net income grows 27.8 percent in 1Q
The Philippine Stock Exchange (PSE) posted a net income growth of 27.8 percent for the first quarter of 2013 behind the strong performance of the stock market. The stock index breached several record highs during the year as trading activities once again reached unprecedented levels.
In a disclosure submitted to the Securities and Exchange Commission, the PSE reported that operating revenues grew by 18.1 percent to Php263.41 million for the first quarter of 2013 from Php222.96 million from the same period last year.
The increase was mainly attributed to the growth in listing-related and trading-related incomes, as well as service fees. Listing-related income registered at Php9.09 million or a 15.3 percent increase from the same period in 2012 mainly because of an increase in listing fees from new listings and annual listing maintenance fees that went up by Php4.19 million and Php4.93 million, respectively.
Trading-related income, inclusive of the amount ceded to Capital Markets Integrity Corporation as regulatory fees, went up by Php11.41 million or 17.2 percent as a result of the growth in average daily turnover value, which increased to Php10.22 billion in the January to March 2013 period from Php7.84 billion in the same quarter last year. The higher trading volume likewise had a positive effect on service fees generated by the Securities Clearing Corporation of the Philippines, a wholly-owned subsidiary of PSE, as it posted an increase of 24.2 percent or Php21.66 million.
"Current market conditions and reforms undertaken by the PSE in the past year have been very advantageous to the PSE's operations. The other projects in the pipeline such as ETFs and PSETradex should continue to support the PSE's growth as a listed company and further enhance our competitiveness globally," PSE President and Chief Executive Officer Mr. Hans B. Sicat said.
PSETradex is the technology platform that has been rolled out by the PSE to allow more brokers to offer online trading service to their clients.
Operating expenses for the period were higher by 12.1 percent to Php70.29 million from Php62.72 million in 2012 largely due to increases in general and administrative expenses.
The benchmark PSEi posted its 30th all-time high for 2013 on May 14 at 7,313.46 points after breaking record highs 38 times in 2013. Year-to-date as of May 14, the PSEi has gained 25.8 percent or 1,500.73 points.
"Our shareholders have been rewarded for their trust in the PSE"s potential as a listed firm, as shown by the 17 percent increase in the company's share price year-to-date, and the earlier announcements of a P9.00 per share total cash dividend and 20 percent stock dividend. We are optimistic that 2013 will continue to give good results, as we continue to pursue programs that will improve not just the Exchange, but the entire stock market," Mr. Sicat said.