London Stock Exchange announces income growth across all areas

The London Stock Exchange (LSE) has posted growth across all of its core business areas in the first half of 2017, showing it certainly didn't need the Deutsche Bourse in order to thrive.

Read more: London Stock Exchange (LSE) and Deutsche Boerse timeline: How "merger of equals" stumbled over Brexit, shareholder votes and criminal investigations before European Commission veto

The exchange announced its revenue was up 18 per cent to £853m, as adjusted operating profit grew by 20 per cent to £398m.

It revealed it would boost the interim dividend by 20 per cent to 14.4p per share, and a £200m share buyback is still ongoing.

"The group has produced a strong financial performance, with good income growth across all of our core business areas," said chief executive Xavier Rolet.

"As well as continuing to deliver organic growth, during the period we announced the acquisition of The Yield Book and Citi Fixed Income Indices business."

Read more: London Stock Exchange Group buys Citigroup's Yield Book and fixed-income indices for $685m

The LSE also completed the acquisition of US data and analytics company Mergent.

The FTSE Russell indexes and LCH over-the-counter clearing services saw particularly strong performance, with each business generating double-digit growth.

Underlying operating costs also increased by five per cent, but the LSE said it was "benefiting from ongoing cost savings and integration efficiencies".

Its adjusted net debt-to-earnings ratio showed 1.2-times leverage, which the exchange said was a "strong balance sheet position".

Perhaps in a bid to allay any Brexit fears, Rolet referenced the LSE's "open access" focus ahead of the implementation of the new Markets in Financial Instruments Directive (Mifid II).

Open access is one of the key elements of Mifid II, according to the LSE, including "the ability of investors to choose where to trade and clear their products, by preventing exchanges and clearing houses from operating a 'closed' silo model".

Read more: More than half of European traders fear increased regulation, while Brexit ranks as a minor concern

Full story: London Stock Exchange announces income growth across all areas: City A.M.

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News