LSE enjoys income boost as it puts focus on merger approval
LONDON STOCK Exchange Group, which has agreed to merge with German rival Deutsche Boerse to create a giant European trading house, reported a 19 per cent rise in third-quarter income, boosted by growth in all its businesses.
The company, which owns Borsa Italiana and London Stock Exchange, said that total income from continuing operations rose to £414.6m in the three months to September 30.
London Stock Exchange said it is focused on gaining regulatory approval for its £21bn merger with Germany’s Deutsche Bo erse. Chief executive Xavier Rolet said the merger will create a global markets infrastructure group, generating significant value and benefits for customers and shareholders.
Last month the European Commission said it will open an in-depth investigation into the tie-up in an effort to ensure financial market infrastructure remains “competitive”.
In response, LSE said that to address anti-trust concerns it will look to offload its French subsidiary LCH. Regulators in Britain and Germany are also looking into the proposed deal.
Following Britain’s decision to quit the European Union, the pair have moved quickly to assuage any fears the referendum result would scupper the deal.
LSE said that all core divisions delivered good growth despite a backdrop of testing markets and economic uncertainty.
Its capital markets division reported a 16 per cent rise in revenue to £89.6m, with growth in both primary and secondary markets despite volatile markets.
This is LSE’s first set of quarterly results since the Brexit vote, with the fall in the pound helping to send UK stock markets to record highs as foreign investors take advantage of sterling’s weakness. The pound has fallen 17.5 per cent against the dollar since the vote on June 23.