LSEG reveals ‘strong set of results’ for H1
03 August 2018 London
Image: Shutterstock
The London Stock Exchange Group (LSEG) has delivered another strong set of results, with growth across all business areas, according to David Warren, LSEG’s financial officer.
Commenting on its first half of the year results, Warren said: “The LSEG is well positioned as a global financial infrastructure business, providing critical services to clients around the world, based on a strategy with open access and customer partnership at its centre.”
“During the period, we have continued to invest for growth as we launch new products and drive further efficiencies across our businesses.”
Capital markets performed well, with good growth in the period in primary markets, where issuance was strong, and in secondary markets, with increased equities, derivatives and repo trading.
In capital markets, the first half saw an increase in the number of new issues, with 87 companies joining the Group’s markets.
On a reported basis, total income increased 12 percent, while operating expenses (before depreciation and amortisation) rose by 2 percent, with adjusted operating profit rising 21 percent to £480 million, and adjusted earnings per share (EPS) increasing 25 percent to 88.7 pence per share.
Underpinning the income growth were strong performances at FTSE Russell and at LCH, with both businesses achieving the targeted double-digit revenue growth rates.
LCH delivered record notional cleared volume at the SwapClear service, up 23 percent to $576 trillion, and compression activity increased 24 percent at $388 trillion.
The ForexClear service also saw record clearing levels with $8.7 trillion cleared and 1.26 million trades, up by 79 percent and 87 percent respectively.
LSEG increased its stake in LCH Group to 68 percent, acquiring an additional 2 percent following a sale by a minority shareholder. LSEG also acquired around a 16 percent stake in AcadiaSoft; LCH SwapAgent and AcadiaSoft signed heads of terms agreement.
LCH SwapClear continues to expand its spread of currencies from 18 to 21, clearing its first non-deliverable interest rate swaps denominated in Chinese yuan, Korean won and Indian rupee; and, in June, gained approval to clear for counterparties domiciled in Mexico.
LCH SwapClear launched Secured Overnight Financing Rate clearing, while LCH ForexClear launched clearing of FX options in early July.
LSEG announced plans to expand the global footprint of group’s shared services company, BSL, with the establishment of a new business services centre in Romania.
David Warren added: “In line with the group’s stated progressive dividend policy, we have increased the interim dividend by 19 percent, to 17.2 pence per share.”
David Schwimmer, LSEG’s new CEO, said: “My immediate focus is to meet with colleagues, customers, shareholders and other stakeholders, and to ensure we continue our focus on driving operational excellence across LSEG as I work with the executive team to develop the group’s many opportunities ahead.”
Commenting on its first half of the year results, Warren said: “The LSEG is well positioned as a global financial infrastructure business, providing critical services to clients around the world, based on a strategy with open access and customer partnership at its centre.”
“During the period, we have continued to invest for growth as we launch new products and drive further efficiencies across our businesses.”
Capital markets performed well, with good growth in the period in primary markets, where issuance was strong, and in secondary markets, with increased equities, derivatives and repo trading.
In capital markets, the first half saw an increase in the number of new issues, with 87 companies joining the Group’s markets.
On a reported basis, total income increased 12 percent, while operating expenses (before depreciation and amortisation) rose by 2 percent, with adjusted operating profit rising 21 percent to £480 million, and adjusted earnings per share (EPS) increasing 25 percent to 88.7 pence per share.
Underpinning the income growth were strong performances at FTSE Russell and at LCH, with both businesses achieving the targeted double-digit revenue growth rates.
LCH delivered record notional cleared volume at the SwapClear service, up 23 percent to $576 trillion, and compression activity increased 24 percent at $388 trillion.
The ForexClear service also saw record clearing levels with $8.7 trillion cleared and 1.26 million trades, up by 79 percent and 87 percent respectively.
LSEG increased its stake in LCH Group to 68 percent, acquiring an additional 2 percent following a sale by a minority shareholder. LSEG also acquired around a 16 percent stake in AcadiaSoft; LCH SwapAgent and AcadiaSoft signed heads of terms agreement.
LCH SwapClear continues to expand its spread of currencies from 18 to 21, clearing its first non-deliverable interest rate swaps denominated in Chinese yuan, Korean won and Indian rupee; and, in June, gained approval to clear for counterparties domiciled in Mexico.
LCH SwapClear launched Secured Overnight Financing Rate clearing, while LCH ForexClear launched clearing of FX options in early July.
LSEG announced plans to expand the global footprint of group’s shared services company, BSL, with the establishment of a new business services centre in Romania.
David Warren added: “In line with the group’s stated progressive dividend policy, we have increased the interim dividend by 19 percent, to 17.2 pence per share.”
David Schwimmer, LSEG’s new CEO, said: “My immediate focus is to meet with colleagues, customers, shareholders and other stakeholders, and to ensure we continue our focus on driving operational excellence across LSEG as I work with the executive team to develop the group’s many opportunities ahead.”
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