Hong Kong Exchanges & Clearing Ltd. · HKEX:388
Hong Kong Exchanges & Clearing — Q3 2022 Earnings Presentation
17 slides from Hong Kong Exchanges & Clearing's earnings presentation, Oct 19, 2022
Slide 1: 2022 Q3 Results Briefing
2022 Q3 Results Briefing Nicolas Aguzin Chief Executive Officer, HKEX Group Vanessa Lau Group Chief Financial Officer, HKEX Group 19 October 2022
Slide 2: Disclaimer
Disclaimer Q3 2021 Key Highlights The information contained in this document is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to subscribe for or purchase any securities, or other products or to provide any investment advice or s
Slide 3: Agenda
Agenda 01 | YTD Q3 2022 Key Highlights 02 | HKEX Group Financial Review 03 | Business and Strategic Update 04 | Appendix 3
Slide 4: YTD Q3 2022 key highlights
YTD Q3 2022 key highlights Financial Performance HK$13.3bn HK$1.7bn HK$7.1bn (-18%YoY) (-18%YoY) (-28%YoY) Revenue and other income Stock Connect revenue Profit attributable to and other income shareholders Business and Strategy Resilient results, despite global market fragility and ongoing geopol
Slide 5: HKEX Group Financial Review
HKEX Group Financial Revie vo
Slide 6: Q3 2022: Revenue down vs Q3 2021 due to lower ADT, but EBITDA and PAT improved vs Q2 2022
Q3 2022: Revenue down vs Q3 2021 due to lower ADT, but EBITDA and PAT improved vs Q2 2022 Core business revenue(2) Revenue and other income (3) EBITDA Q3 2022: HK$4.3bn Q3 2022: HK$4.3bn Q3 2022: HK$3.0bn (17% vs Q3 2021) (19% vs Q3 2021) (28% vs Q3 2021) (4% vs Q2 2022) (2% vs Q2 2022) (2% vs
Slide 7: Core business net profit down 27% driven by 41% lower Headline ADT
Q3 2022 vs Q3 2021 Core business net profit down 27% driven by 41% lower Headline ADT Revenue and Operating Profit attributable to HKEX EBITDA other income(1) expenses(2) shareholders(3) (HK$ m) Total Core business Total Core business Total Core business Total Core business - 19% - 17% + 17% + 13% -
Slide 8: Net profit up 4% driven by increase in net investment income
Q3 2022 vs Q2 2022 Net profit up 4% driven by increase in net investment income, offsetting the 25% lower Headline ADT 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 b
Slide 9: 2022 results consistent with long-term normalised levels
Quarterly performance 2022 results consistent with long-term normalised levels Quarterly performance (HK$ m) Profit attributable to Shareholders Revenue and Other Income (1) Operating Expenses(2) 5,956 EBITDA 5,309 5,309 5,099 4,953 4,773 4,809 4,732 4,690 4,288 4,290 4,247 4,318 4,150 4,044 4,009 4
Slide 10: Net investment income affected by macro sentiment & interest rate
Net investment income – Q3 2022 vs Q3 2021 Net investment income affected by macro sentiment & interest rate Q3 2022: HK$334mn (Q3 2021: HK$155mn) Net investment income by funds Average fund size (HK$ mn) (HK$ bn) 255.6 263.9 Corporate Funds Corporate Funds Margin Clearing House 35.4 34.3 (External
Slide 11: Investment in talent, technology and operational excellence
Operating expenses and depreciation & amortisation – Q3 2022 vs Q3 2021 Investment in talent, technology and operational excellence, in addition to increased professional fees on nickel incident Staff costs and IT & computer HKEX Foundation Other operating Depreciation and Premises expenses Professi
Slide 12: Business and Strategic Update
Business and Strategic Update
Slide 13: Resilient performance in weak market
Resilient Q3 2021Q3 2022 Key performance in weak market Highlights Diversification helped to mitigate lower cash market Global market comparison 140 HSI CSI 300 S&P 500 volumes 130 Average Daily Turnover Value – Hong Kong (HKD bn) 120 Cash Market ADT at HK$124.1bn (down 31%YoY), reflecting -25% YT
Slide 14: Good delivery on strategic priorities
Good delivery on strategic priorities Connecting China and the World Connecting Capital with Opportunities Connecting Today with Tomorrow • Enhance “Connect” programmes • Further build attractiveness of primary • Modernise infrastructure Focus areas • Become China’s go-to offshore risk market • Evol
Slide 15: Looking ahead
Looking Q3 2021ahead Key Highlights Macro economic and geopolitical factors will continue to impact market sentiment and volumes Ongoing market volatility, inflationary pressures, a rising interest rate environment and slowing global growth could continue to impact returns on the external portfo
Slide 16: Welcome questions
Welcome questions Q&A Session
Slide 17: Thank you.
Thank you. For further information on HKEX, please go to hkexgroup.com and hkexnews.hk
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