Hong Kong Exchanges and Clearing (HKEX) on Wednesday reported a 13 percent annual decline in its net profit in the first quarter of this year, as lower turnover weighed on fees, while fewer listings eroded revenues.

Data from the city’s bourse showed the group’s profit stood at HK$2.97 billion for the first three months of the year, compared with the HK$3.4 billion seen in the same period a year ago when economic activities rebounded after Covid.

Revenue and other income also declined, dropping 6 percent year on year to HK$5.2 billion.

The declines came as average daily trading turnover dropped 22 percent year on year to HK$99.4 billion, while listing fees fell 25 percent year on year following the reduction in the number of new listings.

However, the lower income was partially offset by strong derivatives trading, record quarterly high turnover in the Northbound Stock Connect, as well as increased trades at its subsidiary, the London Metal Exchange.

“The HKEX demonstrated its strength and resilience in the first quarter of the year,” said the group’s newly appointed chief executive Bonnie Chan.

“Despite a fragile global backdrop, the group’s derivatives and commodities business performed strongly - the former achieving record quarterly volume,” she said, adding there was a notable increase in daily trading volume in March and April, indicating growing confidence.

“Looking ahead, despite the prevailing backdrop, we are optimistic about HKEX’s ability to capitalise on the long-term growth of China, the considerable opportunities to connect with the fast-growing capital hubs of Southeast Asia and the Middle East, and the continuing exciting developments in technology in our industry and beyond,” Chan said.