Latest Results

Latest Results

Trading Statement including revenues and KPIs for the three months ended 30 September 2020 (Q3)

23 October 2020

  • Resilient Q3 performance across the Group despite challenging market conditions

  • Q3 total income up 2% to £600 million

  • On a nine-month year-to-date basis total income up 6% to £1,835 million

  • Continue to demonstrate strong operational resilience, focusing on continuity of service for customers and the welfare of employees, majority of whom continue to work remotely due to COVID-19 pandemic
  • Well positioned for Brexit with diversified revenue mix. LCH Limited recognised as a Tier 2 CCP under the EMIR 2.2 supervisory framework as part of the wider ESMA recognition of the UK framework as equivalent until at least 30 June 2022

  • Proposed acquisition of Refinitiv continues to make good progress; additional merger clearances achieved and conditional divestment of Borsa Italiana to Euronext agreed; expect to complete Refinitiv transaction in Q1 2021

Q3 summary:

  • Information Services: revenues up 1% to £223 million and up 4% on an organic and constant currency basis (up 4% on a nine-month year-to-date basis). Subscription revenue at FTSE Russell up 4% (up 7% on a constant currency basis) while asset-based revenues decreased 7% (down 3% on a constant currency basis) reflecting lower levels of passive fund AUM in the prior quarter, however, assets benchmarked against ETF products continued to rise

  • Post Trade: income up 5% to £259 million (up 14% on a nine-month year-to-date basis). Good growth in non-OTC and Net Treasury Income; decline in OTC revenues reflecting lower SwapClear volumes compared to elevated prior year period. Cost of Sales down 17% due to one-off positive revenue sharing impact as a result of strong income generation in the nine months year-to-date; a further small benefit is expected in Q4 2020
  • Capital Markets: revenues flat on prior year at £102 million (up 8% on a nine-month year-todate basis and excluding the one-off benefit of an IFRS 15 adjustment in prior year). Primary markets revenue up, with good further issuance activity; equities trading revenues lower as a result of reduced market activity