HKEX Reports 9% Increase in 2021 Revenue and Other Income

Hong Kong Exchanges and Clearing Limited (HKEX) has announce its annual results for the year ended 31 December 2021.

Financial Highlights

• ​2021 revenue and other income of $20,950 million, up 9 per cent against the previous record set in 2020

  -Core business revenue up 10 per cent compared with 2020, reflecting higher trading and clearing fees driven by record Headline ADT

  -Stock Connect revenue and other income reached a record high of $2,724 million, up 41 per cent against 2020, accounting for 13 per cent of Group total revenue and other income

  - Net investment income from Corporate Funds down 16 per cent compared with 2020, reflecting reduced interest income and lower fair value gains of collective investment schemes

• Operating expenses up 2 per cent compared with 2020, attributable to higher IT costs and marketing expenses

• EBITDA1 up 11 per cent compared with 2020 at $16,269 million, with EBITDA margin at 78 per cent, 1 per cent higher than 2020

• In 2021, there was a one-off deferred tax charge on acquired LME intangible assets of $160 million arising from the approval of the change in the UK statutory corporate tax rate from 19 per cent to 25 per cent, effective April 2023

• ​Profit attributable to shareholders up 9 per cent, to a record high of $12,535 million

Nicolas Aguzin, Chief Executive Officer said:"HKEX had a strong year in 2021, despite a turbulent macro backdrop and the ongoing pandemic. Revenue and other income, and profit both reached record highs. Turnover on our Cash Market and volumes on both Stock Connect and Bond Connect achieved new highs, helping to offset the impact of the low interest rate environment on investment income. With a strong IPO pipeline, a new listing regime for SPACs and overseas issuers, an expanding product portfolio, as well as a range of new market microstructure enhancements, including holiday trading, I am confident that HKEX is well-positioned as a super-connector to play an increasingly important role in the fast-evolving global capital markets of the future."