SIX Securities Services Reports 36.7% Increase in Earnings in H1 2014

SIX says the improvement reflects the cost-cutting measures that were implemented in the prior year.
By Charlie Woodward(2147487990)
Swiss financial market infrastructure provider SIX reported robust growth in its securities services business in the first half of the year.

Operating income rose 7.3% to CHF138.7 million (€114.57 million), whereas earnings before interest and tax increased 36.7% to CHF23.1 million (€19.08 million). SIX says the improvement reflects the cost-cutting measures that were implemented in the prior year.

Within Securities Services, the total deposit volume reached CHF3,013 billion (€2,488 billion), an increase of 8.1%, thanks to positive market trends.

Due to stronger volumes on international stock exchanges, cross-border settlement transactions were higher, too, rising 13.1% to 5.8 million transactions. In clearing services, SIX was able to offer its customers access to additional stock exchanges. As a result, the number of transactions in the first half grew by 42.7 million to 154.3 million. This 38% increase illustrates the consequent expansion of business volume beyond country borders, says SIX.

An improved net financial result, higher income from operating activities and strict cost discipline have all contributed towards an increase in SIX’s results for the first half of 2014. With operating income rising by 18%, earnings before interest and tax have correlatively risen by 29.5% to a total CHF151 million (€124.73 million), amounting to a group net profit total of CHF130.7 million (€107.97 million), an increase of 40.4%.

SIX reports that the 18.0% increase experienced in its operating income was achieved as a result of considerably higher activity on the financial markets and an expansion of the international business in Payment Services.

The earnings before interest and tax margin rose from 15.6% to 17.1%.

“This increase was possible because of the successful implementation of initiatives over the last two years. All business areas generated higher operating income and therefore growth compared with the same period last year,” explains SIX Group’s CEO, Urs Rüegsegger.

The Swiss Exchange saw a 6.0% increase in total stock exchange transactions, resulting in a 6.5% boost to stock exchange trading volume. SIX’s Financial Information business registered a 2.5% year-on-year rise to CHF196.8 million (€162.59 million).