The Australian Securities Exchange (ASX) reported an 8.3 per cent increase in net profit, reaching $263.6 million for the half-year ending December 31. However, this positive result was overshadowed by a significant 20 per cent surge in expenses. The ASX had previously warned of substantial expense growth, initially projecting a 14 to 19 per cent increase, which was later revised to between 20 and 23 per cent. The Australian Securities Exchange operates Australia’s primary securities exchange. It facilitates trading, clearing, and settlement services for various asset classes.
The ASX revealed that its expenses totalled $264.3 million, primarily driven by costs associated with the corporate regulator’s ongoing inquiry and investments in key programs. In December, the Australian Securities and Investments Commission (ASIC) imposed a $150 million capital charge and introduced additional requirements concerning the ASX’s culture and governance, following several operational failures, including multiple system outages.
Despite the revenue increase of 11.2 per cent to $602.8 million, interim dividends have been reduced by 8.5 per cent to 101.8 cents, fully franked, representing a 75 per cent payout ratio. These results were released shortly after the announcement of chief executive Helen Lofthouse’s resignation. Lofthouse noted that excluding the costs related to the ASIC inquiry, core business expenses increased by 12.1 per cent.
