PSE sees profit boost with PDS acquisition

MANILA, Philippines — The Philippine Stock Exchange Inc. (PSE) expects the acquisition of the Philippine Dealing System Holdings Corp. (PDS) to boost its bottom line further after seeing its profit surge by more than half last year.

The PSE registered a 57.5-percent jump in its net income to P1.21 billion in 2024 from P766.31 million in 2023.

Operating revenues stood at P1.4 billion, while expenses rose by 14.9 percent year-on-year to P861.67 million due to higher depreciation and maintenance fees for the trading and clearing and settlement systems.

Other income, on the other hand, ballooned by 166 percent to P836.32 million as a result of gains on remeasurement of previously held equity interest of P462.86 million, which came from the consolidation of the additional stake in PDS that was purchased by PSE as of end-2024.

PSE president and CEO Ramon Monzon said the three-year strategic plan laid out by the company last year included the acquisition of PDS.

Monzon said the acquisition should provide a significant boost to PSE’s market development initiatives and bottom line.

“Our post-acquisition objectives will be focused on the seamless integration of both entities to fully realize the synergies, efficiencies and risk management benefits,” Monzon said.

“We will also continue to pursue and complete the initiatives that PDS has already started on the fixed income and depository businesses to further expand investor participation and protection in our market,” he said.

As of Feb. 24, PSE’s ownership in PDS stood at 78.33 percent from its original equity interest of 20.98 percent.

The acquisition of PDS shares is part of the PSE’s intention to align the Philippine capital market with other markets globally that have a single exchange structure for fixed income and equities through the transactions.

The PSE seeks to provide investors with a facility to trade fixed income, equities and other products in a unified marketplace.