HKEX Achieves Second Best Profit in 1H 2023

Hong Kong Exchanges and Clearing Clearing Limited (HKEX) has released its financial results for the first half of 2023, unveiling second best ever half-yearly revenue and other income and profit during the period, next to that of 1H 2021.

Revenue and other income for H1 2023 came in at $10,575 million, rising 18% from $8,937 million in H1 2022. Profit attributable to shareholders reached $6,312 million, 31% higher over $4,836 million in the year-ago semester.

Revenue derived from core business was up 5% to $9,729 million on a yearly basis, driven by  higher net investment income from Margin Funds and Clearing House Funds and record half-yearly derivatives contract ADV. Specifically, net investment income stood at $817 million, compared to $378 million loss in the last same period.

EBITDA went up 23% year-over-year to $7,859 million, with EBITDA margin up 3% to 75%. Basic earnings per share surged 31% to $4.99, with interim dividend per share up 30% to $4.50. Operating expenses increased 7% to $2,622 million, due to higher staff costs and professional fees.

"A good half year for HKEX, despite continued global macro uncertainty and market fragility," commented Nicolas Aguzin, Chief Executive Officer. "Looking forward, whilst the macro landscape will continue to shape market sentiment, we are pleased to see encouraging signs of a revival in our IPO market."

Last week, HKEX releases the joint announcement by Hong Kong's Securities and Futures Commission and the China Securities Regulatory Commission on the proposed introduction of block trading under Stock Connect​, the landmark mutual market access programme between Hong Kong and Mainland China.