PSE Inc. 2015 net income slides 21%

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THE Philippine Stock Exchange Inc. (PSE), which operates the country’s sole equities trading market, said Friday its net income last year fell by a fifth due to market volatility.

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In a statement, PSE said its net income in 2015 amounted to P682.8 million, down 21
percent from P867.55 million posted the year before.

Total revenues, which include operating revenues and other income, fell 15 percent to P1.4 billion versus P1.64 billion in 2014.

Listing-related income, which accounts for 40 percent of operating revenues, was down 41 percent at P483 million from the previous year’s P818.64 million.

PSE explained that although capital-raising activities last year were higher, other listing activities arising from other market deals were slower compared to 2014.

However, it said the decline was tempered by higher trading-related revenues, including service fees derived by the Securities Clearing Corporation of the Philippines Inc., which inched up by 2 percent.

Average daily value turnover last year edged up 2 percent to P8.9 billion from P8.8 billion in 2014.

As of February 23 this year, however, daily average turnover was down by 31 percent at P6.2 billion compared to end-December 2015 levels.

“Last year was a challenging year not only for the Philippine stock market but to the global equities market in general,” PSE president and chief executive officer Hans Sicat said.

“Our local market was not spared from the backlash of China’s economic slowdown and the US Federal Reserve’s decision to start gradually raising interest rates. These developments affected both liquidity and capital market deals particularly in the latter part of the year,” Sicat said.

“Volatility has persisted early in 2016 but we are hopeful that the country’s sound economic fundamentals will help temper these and will cause investors to continue having the Philippines in their investment radar,” he added.

Total expenses in 2015 rose 2 percent to P602 million as investments made by the PSE in its new trading system and its move to a new building jacked up its spending.

The PSE is scheduled to transfer to the Fort Bonifacio Global City in Taguig City next year.

“A big part of the spending increase was due to investments that are being made by the company in line with its strategy of creating a bigger Exchange offering more products and services. Despite these, we were able to manage our expenses to help mitigate the impact of slower market activity in our financials,” Sicat said.

Sicat said PSE is sticking to its P200-billion capital raising target on the assumption that capital raising from the market would begin in earnest in the second half or after the national elections

Capital raising activities at the PSE include IPOs, follow-on offerings, and private placements.

Last year, the PSE fell short of its P200 billion target and had raised only P184.60 billion, 20 percent higher than the P153.08 billion recorded the year before.

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