LSEG Sets Clearing Records
LSEG interim results for the six months ended 30 June 2018
.@LSEGplc well positioned to drive further growth as a diversified, global financial markets infrastructure business – operating on an Open Access basis in partnership with customers https://t.co/BlT7Waswve pic.twitter.com/RjBrW1hhu5
— London Stock Exchange Group (@LSEGplc) August 2, 2018
- Strong financial performance – with double-digit revenue growth in Information Services, LCH and Capital Markets
- Revenue up 12% to £953 million (H1 2017: £853 million); total income up 12% to £1,060 million (H1 2017: £946 million)
- Adjusted operating profit1 up 21% to £480 million (H1 2017: £398 million), with underlying operating expenses on an organic and constant currency basis up 5% as the Group continues to invest in growth and efficiencies
- On a reported basis, operating profit up 29% to £393 million (H1 2017: £305 million); profit before tax up 30% to £360 million (H1 2017: £277 million); profit after tax of £283 million (H1 2017: £208 million)
- Adjusted EPS1 up 25% to 88.7 pence (H1 2017: 71.2 pence); basic EPS up 41% to 71.1 pence (H1 2017: 50.4 pence)
- Interim dividend increased 19% to 17.2 pence per share (H1 2017: 14.4 pence per share), in line with stated dividend policy
- Strong balance sheet position with leverage reduced to 1.6 times adjusted net debt: pro forma EBITDA
- During the period, capital deployed for acquisitions, including increasing stake in LCH Group to 68%; 100% ownership of
- FTSE TMX; and c.16% minority stake in AcadiaSoft alongside organic investment to capitalise on multiple growth opportunities
- FTSE Russell integration of The Yield Book is on track, delivering further expanded multi-asset index capabilities, data and analytics
- LCH continues global leadership with record clearing volume at SwapClear, and successfully launched non-deliverable and SOFR IRS. ForexClear launched options clearing
- Group is well positioned to drive further growth as a diversified, global financial markets infrastructure business – operating on an open access basis in partnership with customers
David Schwimmer, Group CEO, said:
“I am delighted to join the Group, which continues to deliver strong growth. The Group’s strategy, based on an open access and customer partnership approach, provides a great foundation for further success. 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.”
David Warren, Group CFO, said:
“The Group has delivered another strong performance, with growth across all business areas. LCH has launched new products and set new records for clearing levels in the SwapClear and ForexClear services, while FTSE Russell has produced another good result. Capital Markets performed well with increases in primary and secondary markets activity. We are in a strong position as we work to execute on our strategy and to meet our financial targets while continuing to invest for further growth.”
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Phase 5 of the uncleared margin rules (UMR) took effect from September 2021.
Temporary equivalence is set to expire on June 30 2022.
IRS trading volumes have fragmented without an equivalence agreement.
Phase 5 of the uncleared margin rules came into effect on 1 September.
Triparty repos can be executed across U.S. Treasury securities to central clearing.