PHILIPPINE STAR/EDD GUMBANTHE PHILIPPINE Stock Exchange, Inc. (PSE) grew its 2024 net income by 57.5% to P1.21 billion from P766.31 million in 2023, following its acquisition of the Philippine Dealing System Holdings Corp. (PDS).
Operating revenue declined by 0.23% to P1.398 billion from P1.401 billion the previous year, PSE said in an e-mail statement on Monday.
PSE increased its other income by 166% to P836.32 million, driven by a P462.86-million gain on the remeasurement of its previously held equity interest, arising from the consolidation of its additional stake in PDS.
Expenses rose by 14.9% to P861.67 million due to higher depreciation costs and maintenance fees for trading, clearing, and settlement systems.
“The three-year strategic plan we laid out last year included the acquisition of PDS, which should provide a significant boost to our market development initiatives and bottom line,” PSE President and Chief Executive Officer Ramon S. Monzon said.
In December last year, the market operator announced its acquisition of a 61.92% stake in PDS for P2.32 billion as part of efforts to consolidate the local capital markets. PSE will purchase 3.87 million PDS shares at P600 apiece.
PSE also previously signed an agreement to acquire the 4% stake in PDS held by AIA Philippines Life and General Insurance Co., Inc. Once all closing conditions are met, this move will increase PSE’s ownership in PDS to 88.44%.
As of Feb. 24, PSE’s stake in PDS stood at 78.33%, up from its original equity interest of 20.98%.
“Our post-acquisition objectives will focus on the seamless integration of both entities to fully realize synergies, efficiencies, and risk management benefits,” Mr. Monzon said.
“We will also continue to pursue and complete the initiatives that PDS has already started in the fixed-income and depository businesses to further expand investor participation and protection in our market,” he added.
On Monday, PSE shares rose by 2.14% or P3.90 to P185.90 apiece. — Revin Mikhael D. Ochave
