Hong Kong Exchanges and Clearing Limited (HKEX) on Thursday said its full-year revenue and profits were the second-best on record in 2023, helped by the growth in investment income as well as derivatives trading.

The bourse’s net profits for 2023 jumped 18 percent year on year to HK$11.9 billion, although that was lower than analysts’ estimates as higher investment income was offset by a drop in trading and listing activities amid a challenging macro-economic environment.

Revenues, meanwhile, grew 11 percent year on year to over HK$20.5 billion, the highest since 2021.

“HKEX delivered a strong set of 2023 full-year results, fuelled by notable growth in its derivatives, fixed-income and currencies business,” said the bourse’s chief executive, Nicolas Aguzin.

The group also saw its net investment income from its global stock and bond holdings rise to HK$1.5 billion last year, compared with the HK$48 million loss it posted in 2022.

But HKEX’s average daily turnover tumbled 16 percent to HK$105 billion in 2023, eroding the group’s fee income, according to its filing.

The bourse proposed a second interim dividend of HK$3.91 per share, bringing the total to HK$8.41 for 2023, up 18 percent from 2022. It maintained the payout at 90 percent of earnings.

Despite the full-year growth, the stock market operator’s fourth-quarter profits took a hit, down by 13 percent year on year to HK$2.6 billion, while revenues and other income also declined, dropping seven percent year on year to HK$4.8 billion, amid shrinking stock transactions.

Operating expenses in the last three months of 2023 were 12 percent higher year on year due to higher staff and IT costs.

Looking ahead, Aguzin said the company remains “cautiously optimistic” regarding its outlook despite the turbulent macroeconomic and geopolitical environment.

“As sentiment improves, we are well placed to capitalise on the global pivot to Asia, on Hong Kong’s unique role as an East-West super connector, on our unrivalled China advantage and on the megatrends, such as sustainability, that are shaping capital markets around the world,” he said.

After leading the bourse for three years, Aguzin stood down on Thursday.

His counterpart Bonnie Chan, the co-chief operating officer, takes over the top post from Friday.