LSE hits revenue forecasts thanks to Italian banks
The London Stock Exchange comfortably beat quarterly revenue forecasts with a 17 per cent rise, boosted by interest on short-term loans to Italian banks.
The British exchange reported income of £196m in the three months to December, its third quarter, compared with a forecast for £181m.
Treasury income from its Italian clearing house of £33.5m beat a forecast for £26.6m.
“We have seen a big increase in the volume of transactions we clear and we are looking to optimise the returns we take on margin collateral,” chief financial officer Doug Webb said.
The LSE’s main capital markets business earned £68.9m, compared with a forecast of £69.8m, while its data services group made £52.8m, versus £44m estimated by analysts.
Its Italian clearing house CC&G, like other clearing providers, offers short-term liquidity to clients and this unit has benefited from increased demand from Italian banks.