Hong Kong Exchanges and Clearing Limited (HKEX) has announced its financial results for the fourth quarter of 2022. Revenue and other income for the fourth quarter was $5.201 billion, up 10 percent from the fourth quarter of 2021 and a record high, the report showed. Core business income increased 7% compared to the fourth quarter of 2021, driven by higher net investment income, which increased 52% compared to the fourth quarter of 2021, primarily due to higher interest income and fair value gains on external portfolios. However, this increase was partially offset by non-recurring valuation gains on 2021 senior equity investments.

The earnings before interest, tax, depreciation and amortisation (EBITDA) margin was unchanged at 74 per cent. Net income attributable to shareholders was $2,979 million, up 11% from the fourth quarter of 2021 and also a record high.

The volatile macro environment in 2022 continues to affect global market volumes, and Hong Kong is no exception. However, market sentiment began to improve in the fourth quarter, which allowed HKEx to end the year on a strong note.

Throughout 2022, the Hong Kong derivatives market performed strongly, with its USD/RMB futures and other individual derivatives products setting new trading records. Trading through the equity channel remained resilient, and Northbound Bond Connect trading volumes and the number of investors continued to hit new highs.

Driven by the re-launch of the IPO market in the second half of the year, Hong Kong remains one of the world's most active IPO fundraising centers, raising a total of $104.6 billion in 2022.

The average daily volume of LME metals contracts is down 7% from 2021, but the market environment is relatively tough.

For the full year ended December 31, 2022, total revenue and other income of the Group was $18.456 billion and net profit attributable to shareholders was $10.078 billion, down 12% and 20%, respectively, from the record high in 2021.

The Board of Directors declared the payment of a second provisional dividend of $3.69 per share, paid entirely in cash, plus the first provisional dividend of $3.45 per share paid in September 2022, for a total dividend of $7.14 per share for the full year.

Nicolas Aguzin, Chief Executive Officer of HKEX, said: "For HKEX, the year ended with a record fourth quarter financial performance, partially offsetting weaker trading volumes in the first half of the year. While the road ahead will be challenging, we look forward to the year ahead and will continue to deliver on our vision of building the market of the future."