Photo from pse.com.ph
MANILA, Philippines—The Philippines Stock Exchange doubled its profit in the first nine months compared to last year as the robust stock market encouraged landmark capital-raising and listing activities.
Its net profit grew by 103.4 percent to P484.95 million year-on-year primarily due to higher listing revenues, the PSE said in a press statement on Friday.
“The PSE continues to be committed to excellence and prudent financial management as it endeavors to improve its financial performance every year to provide value to its shareholders. While the company has benefited tremendously from the favorable economic environment and sky-high optimism in the Philippines, we hope to further sustain the profitability of our operations as we continuously work to introduce new products and put in place corporate governance enhancements in the market,” PSE president and chief executive officer Hans Sicat said.
Nine-month operating revenues went up by 38.9 percent to P833.98 million from the same level last year as all components of income increased. Listing-related revenues expanded by 61.3 percent to P406.05 million over the same period.
Total capital proceeds from private placements, stock rights offerings, initial public offerings and follow-on offerings in the January to September period amounted to P174.97 billion from P64.54 billion in the same period last year. Companies that raised fresh capital during the third quarter included San Miguel Corp., First Gen Corporation, BDO Unibank, Inc., and Tanduay Holdings, Inc. (to be renamed LT Group, Inc.).
The P80-billion preferred shares offering of San Miguel made history as the largest capital-raising exercise on the stock market while BDO’s P43-billion fund-raising was the largest local stock rights offering.
Apart from listing fees, the PSE also posted higher service fees and other income.
Service fees generated by the Securities Clearing Corp. of the Philippines, a wholly owned subsidiary, increased by 25 percent to P233.51 million year-on-year. Other income grew by 171.2 percent to P101.13 million over the same period primarily due to improved investments.
Total expenses amounted to P321.28 million for the first nine months, only 3.7 percent higher than total expenses in the same period last year.
The PSE was ranked as the world’s top performing market by the World Federation of Exchanges in 2011. Among the notable reforms implemented by the PSE was the rollout of a new trading system, extension of trading hours and implementation of multiple regulatory and governance enhancements.