The Philippine Stock Exchange Inc. (PSE) posted a 5.1 percent rise in net income to P254.67 million in the first quarter, lifted by a surge in trading and listing revenues after consolidating earnings from its expanded stake in Philippine Dealing System Holdings Corp. (PDS).

The stock market regulator said on Friday that operating revenues surged by 82.7 percent to P645.49 million from P353.34 million, lifted by an 83.8 percent jump in trading-related revenues to P222.60 million and a 49.2 percent increase in listing-related revenues to P171.19 million. 

These gains were attributed to the consolidation of transaction revenues from the Philippine Dealing & Exchange Corp. and the Philippine Depository & Trust Corp. (PDTC) and a 5.1 percent rise in equities trading value.

The acquisition also added P139.28 million from PDTC’s depository securities account fees, while revenues from additional listings and higher listing maintenance caps supported the growth.

Stable revenue source

“The acquisition of PDS gives us another stable revenue source. But more than the consolidation of PDS numbers into PSE’s financial performance, this integration has always been intended to introduce synergies between the two exchanges to enhance the domestic capital market infrastructure,” PSE president and CEO Ramon S. Monzon said.

Meanwhile, operating expenses nearly doubled, rising 93.8 percent to P339.14 million from P174.99 million due to the inclusion of PDS costs. Still, operating income rose by 71.8 percent to P306.35 million from P178.35 million.

Other income dropped by 73.2 percent to P32.23 million from P120.17 million, reflecting lower returns from financial assets amid market volatility, which tempered overall net income growth.

As of 15 May, PSE had increased its shareholdings in PDS to 91.6 percent from 79.9 percent in March.

The acquisition is part of a three-year strategic plan to unify trading of fixed income, equities and other products under a single marketplace.