Deutsche Börse AG published its figures for the third quarter of 2014 on Monday. The Group generated net revenue of €495.9 million, an increase of 8 per cent on the prior-year period (Q3/2013: €457.9 million). Operating costs adjusted for exceptional items increased as expected and amounted to €266.0 million (Q3/2013: €236.1 million). The increase is attributable to consolidation effects and higher investments in growth initiatives and infrastructure. Adjusted earnings before interest and tax (EBIT) rose by 4 per cent, to €233.5 million (Q3/2013: €224.0 million). As a result, the Group recorded adjusted basic earnings per share of €0.85 (Q3/2013: €0.83).
In the first nine months of 2014, the Group generated net revenue of €1,498.5 million, a year-on-year increase of 4 per cent (Q1–3/2013: €1,439.3 million). The Group’s adjusted operating costs amounted to €758.7 million (Q1–3/2013: €699.7 million). Adjusted EBIT amounted to €745.7 million (Q1–3/2013: €747.8 million) and adjusted earnings per share increased slightly to €2.75 (Q1–3/2013: €2.72).
Gregor Pottmeyer, Deutsche Börse AG’s CFO and Executive Board member for human resources, said: “Trading activity on the Group’s markets picked up significantly at the end of the third quarter. In combination with continuous growth at Clearstream and in the Market Data + Services segment, this increased the Group’s net revenue and earnings compared with the previous year.”
Pottmeyer added: “The growth trend continued in October, with high double-digit growth rates in some parts of the business. Against this background, the Group is reiterating its guidance for 2014 and now expects to generate net revenue roughly in the middle of the forecast range of €1.9 to €2.1 billion. As for operating costs, the Group is maintaining its forecast of €1,050 million, excluding non-recurring items and consolidation effects.”
Results for Q3/2014
In total, Deutsche Börse Group’s net revenue amounted to €495.9 million in the third quarter of 2014, an increase of 8 per cent year-on-year (Q3/2013: €457.9 million). The increase in net revenue at Eurex, the derivatives segment, and at Clearstream, the post-trade segment, as well as further growth in the Market Data + Services segment more than offset the slight decline in net revenue in the Xetra cash market segment. Net interest income from banking business rose to €9.6 million (Q3/2013: €8.1 million), primarily due to an exceptional item of €2.1 million.
The third quarter’s operating costs decreased compared with the prior-year quarter, to €274.0 million (Q3/2013: €359.1 million). They included costs of €8.0 million mainly in connection with efficiency programmes (Q3/2013: €123.0 million, including a settlement payment of €114.8 million made to the US Office of Foreign Assets Control (OFAC)). Operating costs adjusted for these exceptional items amounted to €266.0 million (Q3/2013: €236.1 million). The expected year-on-year increase is attributable to consolidation effects and higher investments. The result from equity investments amounted to €10.6 million (Q3/2013: €2.2 million). It included two offsetting effects: firstly, there was a one-off gain because of the retrospective adjustment to the fair value of the consideration transferred resulting from the acquisition of European Energy Exchange AG (EEX). Secondly, an impairment loss was recognised on the investment in Zimory GmbH. The adjusted result from equity investment stood at €3.6 million (Q3/2013: €2.2 million).
As a result of the development of net revenue and operating costs, EBIT stood at €232.5 million in the third quarter (Q3/2013: €101.0 million). Adjusted for exceptional items, EBIT was €233.5 million (Q3/2013: €224.0 million). The Group’s financial result amounted to €–14.0 million (Q3/2013: €–12.9 million). The tax rate, adjusted for the above-mentioned exceptional items and a non-recurring effect resulting from a tax refund, was 26.0 per cent (Q3/2013: 26.0 per cent).
Consolidated net income for the third quarter of 2014 amounted to €160.0 million (Q3/2013: €61.6 million). Adjusted for the exceptional items mentioned above, consolidated net income was €155.9 million (Q3/2013: €152.6 million). Earnings per share, based on the weighted average of 184.2 million shares outstanding, amounted to €0.87 (Q3/2013: €0.33 for 184.1 million shares outstanding); adjusted earnings per share were €0.85 (Q3/2013: €0.83).
Results of the stress test of the European Central Bank for
Clearstream Banking S.A.
The European Central Bank (ECB) published the results of its stress test and Comprehensive Assessment of banks on 26 October 2014. The implementation of the Single Supervisory Mechanism (banking union), due to come into force on 4 November, will make the ECB the highest regulatory authority for banks in the euro zone. Prior to the implementation of this mechanism, the ECB has undertaken a critical analysis of the balance sheets of 130 euro zone banks and banking groups over the past months, and, in line with the goals of the banking union, has ultimately classified 120 as “significant institutions”.
Clearstream Banking S.A., Luxembourg, as a core infrastructure to ensure the integrity of the capital markets in possession of a banking licence, was included by the ECB in the assessment exercise. Clearstream passed the stress test with very good results in all scenarios. In the course of the extensive evaluation of the balance sheet and the sufficiency of equity capital coverage levels, the ECB confirmed the institution’s high resilience. Under the standard guidelines of the stress test, Clearstream Banking S.A. achieved a Core Tier 1-quota of close to 20 per cent.