Bourse net profit doubled to P485M in first 9 months

The Philippine 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 103.4 percent to P484.95 million year-on-year primarily due to higher listing revenues, the PSE said in a statement 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,” said PSE president and chief executive Hans Sicat.

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 and stock rights, follow-on and initial public 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 Corp., BDO Unibank and Tanduay Holdings Inc. (to be renamed LT Group Inc.).

The P80-billion preferred shares offering of San Miguel made history as the biggest capital-raising exercise in the stock market while BDO’s P43-billion fund-raising was the largest stock rights offer seen in the local market.

Apart from listing fees, the PSE also posted higher service fees and other income. Service fees generated by Securities Clearing Corporation of the Philippines, a wholly-owned subsidiary, increased by 25 percent to P233.51 million. Other income grew 171.2 percent to P101.13 million over the same period primarily due to  improved investments.

Total expenses were capped at P321.28 million for the first nine months, only 3.7-percent higher compared with the level 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.