LSE earns £550m on bank bonanza

THE London Stock Exchange earned £546m in the first quarter of 2019 due to a boom in big banks using its services.

Total income at the LSE was 5pc higher than a year earlier, chiefly driven by a surge in its clearing business LCH, which handles trades between international lenders.

income from LCH was up 17pc at £182m for the quarter. Clearing houses sit between major banks when they trade with each other, and guarantee that sellers will get money they are owed even if a buyer collapses before it is able to pay up.

They have become increasingly important since the financial crisis a decade ago, and London has emerged as by far the biggest European centre for the industry.

LSE’s former boss, Xavier rolet, had warned before the brexit vote that brussels could snatch away its clearing business if Leave won.

but the firm now says there has been no discernible change in customers’ use of the service.

Shares rose 3.4pc, or 172p, to 5186p.