ASX increases expense growth guidance as reforms progress
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The news: The ASX has increased its FY26 expense growth guidance to between 20% and 23%, from between 14% and 19%, as reforms progress.
The numbers: The guidance includes expenses of between $25 million and $35 million relating to the Australian Securities and Investments Commission's (ASIC) inquiry.
The context: In December, the ASX said its expense growth guidance was unchanged. But due to progress on reforms it has now updated its guidance.
The key driver of the increase is its decision to make future upgrades to the capacity and capability of resources to uplift risk management and modernise and support its major technology platforms.
It noted that slower uptake of e-statements at a time of high trading volumes had also contributed to the increase in expense guidance.
The ASX said it had:
- Progressed development of an implementation plan for the strategic package of actions;
- Revised investment requirements for key strategic priorities informed by the inquiry panel’s interim report; and
- Updated our view of FY26 costs associated with trading volumes and the timing of various legal actions.
The ASX also said its unaudited 1H26 statutory net profit after tax (NPAT) was up 8.3% to $263.6 million. Its total expenses were up 20% to $264.3 million.
What they said: ASX chief executive Helen Lofthouse said: “Alongside the reset of the Accelerate Program and the measures to enhance the independence of the clearing and settlement facilities, we have been reviewing key areas of our strategic investment to support how we address the spirit of the Inquiry’s findings”.
The source: ASX
