LCH.Clearnet full year profits soar

Strategic and operational highlights

• Demonstrated, in unprecedented market volatility, its value as a key participant in the global capital markets risk management framework
• Strengthened position as leading OTC clearing house with SwapClear passing $339.9 trillion notional cleared; ForexClear cleared notional of more than $440 billion in 2012 following March launch; CDSClear extended to include international model
• RepoClear cleared over €142.4 trillion nominal
• Continental European cash equity and listed derivative clearing arrangements with NYSE extended
• Revised terms for London Stock Exchange (LSEG) offer for a majority stake provisionally agreed in December
• Acquisition of International Derivatives Clearing Group (IDCG) from Nasdaq in August 2012 to provide platform for accelerated expansion of US multi-asset clearing offer

Financial highlights

• Net revenues increased by 24% to €426.2 million
• Headline operating profit grew by 89% to €127.5 million
• Clearing fees increased 7% to €253.9 million
• Net underlying investment income was €132.3 million, down 5%, while average cash and collateral under management rose 13% to €83.6 billion
• Unrealised net investment gain and net other income including rebates of €40.0 million
• Operating costs controlled at €298.7 million
• Tier 1 ratio of 40% and total capital ratio of 46%

Commenting on performance Ian Axe, Group Chief Executive, said: "Last year saw unprecedented stress in European sovereign debt markets and extensive global financial regulatory reforms covering CCPs. LCH.Clearnet came through for clients and regulators demonstrating once again our effectiveness within the global capital markets risk management framework. A €127.5 million profit is sound evidence of how we strengthened our financial stability and is proof of our longevity. We also achieved a number of important milestones in our strategic development, including reinforcing our leading market position in Europe by growing our OTC businesses and extending our horizontal exchange model, as well as investing in the US and Asia. We are in a strong position to leverage further our strengths as the leading multi-asset class, multi-venue clearer." 

Read the full statement here