THE Philippine Stock Exchange, Inc. (PSE) saw a 25% increase in its net profit for the first half, reaching P495.7 million from P398 million a year ago, after taking control of the Philippine Dealing System Holdings Corp. (PDS).
Operating revenue rose by 82%, as trading-related and listing-related fees grew by P233.9 million and P36.7 million, respectively, the PSE said in a regulatory filing on Monday.
“The surge in revenue from trading-related fees was largely attributed to transaction fees from the subsidiaries of PDS, while the increase in revenue from listing-related fees was driven by the additional listing fees and listing maintenance fees, which grew by 57% and 43%, respectively,” the PSE said.
“Furthermore, depository securities account fees from the Philippine Depository & Trust Corp. (PDTC) contributed an additional P282.4 million, boosting total revenues,” it added.
However, the PSE said growth was partially offset by a 70% increase in total expenses and a 58% decline in other income due to foreign exchange losses driven by prevailing market volatility and interest expense from payable loans.
The PSE added that the drop in other income occurred because it no longer recorded equity income from PDS, which is now treated as a subsidiary.
The market operator has been acquiring additional interest in PDS since December last year to provide a single venue for listing and capital-raising activities in the Philippines.
PDS owns PDTC as well as fixed-income exchange operator Philippine Dealing and Exchange Corp.
The PSE beneficially owns 92.06% of PDS after completing the acquisition of 28,790 shares from a selling member bank of the Bankers Association of the Philippines (BAP) on May 30.
On top of the market operator’s 20.98% interest, the PSE previously closed transactions with Singapore Exchange Ltd., Whistler Technologies Inc., San Miguel Corp., Golden Astra Capital Inc., Financial Executives Institute of the Philippines Research and Development Foundation, Investment House Association of the Philippines, and AIA Philippines Life and General Insurance Co., Inc.
The PSE also finalized deals with the Social Security System, Insular Investment Corp., Citicorp Capital Philippines, Inc., Tata Consultancy Services Asia Pacific Pte. Ltd., Mizuho Bank, Ltd., and MUFG Bank, Ltd. It also closed deals with BAP and some of its member banks.
PSE shares climbed by 0.29% or 60 centavos to P207.60 per share on Monday. — Revin Mikhael D. Ochave