Hong Kong Exchanges & Clearing Ltd. · HKEX:388
Hong Kong Exchanges & Clearing — FY2024 Earnings Presentation
26 slides from Hong Kong Exchanges & Clearing's earnings presentation, Feb 27, 2025
Slide 1: 2024 Annual Results Media Briefing
2024 Annual Results Media Briefing Bonnie Y Chan Chief Executive Officer, HKEX Group Vanessa Lau Chief Operating Officer and Group Chief Financial Officer, HKEX Group 27 February 2025
Slide 2: Disclaimer
Disclaimer The information contained in this document is for general informational purposes only and does not constitute an offer, solicitation, inducement, invitation or recommendation to subscribe for, buy or sell any securities or other products or to provide any investment advice or service of a
Slide 3: Agenda
Agenda 01 | 2024 Key Highlights 02 | HKEX Group Financial Review 03 | Business and Strategic Update 04 | Appendix 3
Slide 4: 2024 Key Highlights
2024 Key Highlights Record full year financial results Revenue and other income Profit attributable to shareholders Q4 2024: HK$6.4b (+31% YoY, +19% QoQ) Q4 2024: HK$3.8b (+46% YoY, +20% QoQ) FY 2024: HK$22.4b (+9% YoY) FY 2024: HK$13.1b (+10% YoY) Continued strategic progress Diversification delive
Slide 5: HKEX Group Financial Review
HKEX Group Financial Review
Slide 6: Record quarterly revenue and Q4 profit; best-ever annual revenue and profit
Record quarterly revenue and Q4 profit; Best-ever annual revenue and profit, driven by robust trading volumes Core business revenue(2) Revenue and other income(3) EBITDA Q4 2024: HK$6.0b (33% YoY) Q4 2024: HK$6.4b (31% YoY) Q4 2024: HK$4.7b (44% YoY) FY 2024: HK$20.6b (9% YoY) FY 2024: HK$22.4b
Slide 7: Profit rose 46% on vibrant Cash Market and record Connect volumes
Q4 2024 vs Q4 2023 Profit rose 46% on vibrant Cash Market and record Northbound and Southbound Connect volumes Revenue and Operating Profit attributable to HKEX EBITDA other income(1) expenses(2) shareholders(3) (HK$ m) Total Core business Total Core business Total Core business Total Core business
Slide 8: Best-ever revenue and profit on higher volumes in Cash, Derivatives and Commodities
FY2024 vs FY2023 Best-ever revenue and profit on higher volumes in Cash, Derivatives and Commodities Markets Revenue and Operating Profit attributable to HKEX EBITDA other income(1) expenses(2) shareholders(3) (HK$ m) Total Core business Total Core business Total Core business Total Core business +
Slide 9: Q4 2024 performance above historical trendline
Quarterly performance Q4 2024 performance above historical trendline, supported by the vibrant Cash Market Quarterly performance (HK$ m) Profit attributable to Shareholders 6,381 Revenue and Other Income(1) 5,956 Operating Expenses (2) EBITDA 5,558 5,309 5,309 5,420 5,372 5,201 5,201 5,099 4,953 5,0
Slide 10: NII & aggregate average fund sizes remained stable
Net investment income (NII) – FY2024 vs FY2023 NII & aggregate average fund sizes remained stable FY2024: HK$4,927m (FY2023: HK$4,959m) Net investment income by funds Average fund size (HK$ m) (HK$ b) 245.4 238.6 Corporate Funds Corporate Funds Margin Clearing House (External Portfolio) (Internal) F
Slide 11: Opex up 6% due mainly to prudent control and lower professional fees
Operating expenses and depreciation & amortisation – FY2024 vs FY2023 Opex up 6% due mainly to prudent control, lower professional fees and partial recovery of legal fees from nickel incident Staff costs and IT & computer HKEX Foundation Other operating Depreciation & Premises expenses Professional
Slide 12: Business and Strategic Update
Business and Strategic Update
Slide 13: Strong performance in 2024: record highs
Strong performance in 2024 : record high in 2024 Cash Market demonstrated resilience Strategic diversification continues to pay off Average Daily Turnover (ADT) Derivatives LME Value (HK$ b) Record high ADV of 1.6m contracts ADV 664,000 lots (up 15% YoY) (up 18% YoY) Connect programmes going from st
Slide 14: New products, microstructure enhancements and client engagement drive derivatives growth
New products, microstructure enhancements and expanded client engagement drive continued robust growth of derivatives Execution of key market development initiatives Derivatives ADV hits fresh record ADV (in ‘000) Product Launch (2024 ADV) 1,551 HS TECH Index Suite Weekly Options MSCI Suite FY21-24
Slide 15: Strong strategic progress in 2024
Strong strategic progress in 2024 Build on our China strength Enhance market vibrancy • Connect programmes’ enhancement and expansion • Provide a liquid and vibrant marketplace • Integrate China strategy across business • Grow product, client and issuer ecosystems • Creating more China opportunities
Slide 16: Looking ahead
Looking ahead ➢ The market vibrancy in 2024 once again reinforced Hong Kong’s position as a leading international financial centre. With the renewed enthusiasm from September 2024, we saw a number of fresh all-time records across our Cash and Derivatives markets. This in turn helped HKEX report its
Slide 17: Thank you / Q&A Session
Welcome Welcome Thank questions questions you Q&A Session Q&A Session
Slide 18: Appendix
Appendix
Slide 19: Q4 2024 vs Q3 2024: record quarterly revenue and Q4 profit
Q4 2024 vs Q3 2024 Record quarterly revenue and Q4 profit driven by surge in volumes in Cash and Derivatives Markets Revenue and Operating Profit attributable to HKEX EBITDA other income(1) expenses(2) shareholders(3) (HK$ m) Total Core business Total Core business Total Core business Total Core bus
Slide 20: NII mainly driven by higher Margin Fund size
Net investment income (NII) – Q4 2024 vs Q4 2023 NII mainly driven by higher Margin Fund size Q4 2024: HK$1,199m (Q4 2023: HK$1,072m) Net investment income by funds Average fund size (HK$ m) (HK$ b) 274.0 Corporate Funds Corporate Funds Margin Clearing House (External Portfolio) (Internal) Funds Fun
Slide 21: Opex up 6% reflecting prudent investments
Operating expenses and depreciation & amortisation – Q4 2024 vs Q4 2023 Opex up 6% reflecting prudent investments in talent, infrastructure and operational excellence Staff costs and IT & computer HKEX Foundation Other operating Depreciation & Premises expenses Professional fees Total opex(2) relate
Slide 22: Financial highlights – Income Statement
Financial highlights – Income Statement (HK$ m, unless stated otherwise) FY2024 FY2023 YoY Change Results Revenue and other income 22,374 20,516 9% Less: Transaction-related expenses (332) (247) 34% Revenue and other income less transaction-related expenses 22,042 20,269 9% Operating expenses (5,761
Slide 23: Performance by operating segment
Performance by operating segment Data and Corporate Group Group HK$ m Cash Derivatives Commodities Connectivity Items FY2024 FY2023 Revenue and other income 9,422 6,204 2,788 2,126 1,834 22,374 20,516 % of Group Total 42% 28% 12% 10% 8% 100% 100% Less: Transaction-related expenses (9) (323) - - - (3
Slide 24: Global indices and key market data performance
Global indices and key market data performance Global market comparison Key market indicators (Q1 2023 – Q4 2024) HSI CSI 300 S&P 500 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 170 160 +57% Derivative ADV 150 1,418 1,316 1,336 1,343 1,500 1,565 1,482 1,654 ('000 contracts) 140 130 120 110 100 9
Slide 25: Continuous ADR conversion while trading migration moderated
Continuous ADR conversion while trading migration moderated from China concept homecoming except Alibaba (converted to Primary) Top 10 Secondary and ADR conversion to HK CCASS Trading shares in HK(3) Dual Primary Listings(1) Market HKEX trading volume HK IPO HK freely traded shares (2) Stock Name Ca
Slide 26: Stock Connect – trading trends
Stock Connect – trading trends Stock Connect generated revenue of HK$2,744m in FY2024 (up 24% YoY) Stock Connect average daily turnover in value (HK$ b) Shenzhen Southbound Shenzhen Northbound (1) Total average daily turnover in value (2) NB record of SB record of Shanghai Southbound Shanghai Northb
Hong Kong Exchanges and Clearing — FY2024 Earnings Presentation on 6ix