London Stock Exchange Group (LSEG) reported its full year (FY) 2023 results today, with earnings in line with expectations despite a slight drop in profits. The firm saw a 12.1% increase in its fixed income business against 2022, offsetting a drop in equities (-8.8%) and FX trading (-1.9%). Overall, capital markets saw 6.1% growth against 2022, up from £1,459 million in 2022 to £1,546 million in 2023.
LSEG CEO David Schwimmer said 2023 was “another strong year” for LSEG and the firm expects “further progress” in 2024. “We continued our track record of broad-based growth, despite an uncertain environment, and delivered on all the targets we set at the time of the Refinitiv acquisition.”
“In capital markets, we are collaborating more extensively with Tradeweb, creating new avenues for growth. We are also seeing an encouraging IPO pipeline for the London Stock Exchange,” said Schwimmer.
Total income for 2023 was up 8.3%, and up 7.7% excluding the 2023 Acadia acquisition, which was towards the upper end of the 6%-8% guidance range.
LSEG’s data and analytics arm – which grew 7.3% – continued to drive the business, with “good progress” on the firm’s Microsoft partnership. The first AI and industry workflow products are expected in H1 2024.
The firm’s post trade division saw a 17.4% increase in 2023 against 2022, reflecting LCH growth and the firm’s Acadia acquisition, announced in December 2022. Acadia provides risk management, margining and collateral services to global financial institutions for the uncleared derivatives markets. “Our post trade business is in the early phase of its next stage of growth, helping financial institutions manage risk and improve capital efficiency across the whole trading book,” Schwimmer said
On the whole, however, the results were strong. The firm saw “significant” shareholder returns, with £1.2 billion returned via buybacks in 2023 and a plan to execute a further £1 billion of buybacks in 2024 from the Blackstone/Thomson Reuters consortium.
©Markets Media Europe 2024
