Deutsche Börse reports 17% increase in net revenues
08 February 2024 Germany
Image: cineberg
Deutsche Börse net revenues increased by 17 per cent to €5,077 million for the year 2023.
The increase was assisted by the acquisition of global software company Simcorp, which delivered net revenue volumes of €198 million in Q4.
The group reported a mixed year for the European fund industry in 2023.
Although it benefited from rising prices, the higher interest rates opened up alternative investment opportunities, prompting outflows from equity funds.
For Q4 2023, fund processing increased 8 per cent year-on-year (YoY) to €56.1 million while fund distributions declined 13 per cent YoY to €21.3 million.
For 2023, fund processing increased by 1 per cent YoY to €213.9 million, while fund distributions declined 5 per cent YoY to €85.3 million.
In securities services, custody and settlement were positively affected by ongoing high levels of fixed income issuance activity and higher index levels.
For Q4, securities services reported a 7 per cent YoY increase in net revenue to €371.5 million. For 2023, net revenue increased 35 per cent YoY to €1,510.7 million.
Custody services reported a 3 per cent YoY increase to €152.6 million for Q4 2023, and a 5 per cent YoY rise for 2023 to €615.1 million.
There was a 12 per cent YoY rise in settlement volume recorded for Q4 to €28.9 million, with 2023 volumes rising 9 per cent YoY to €114.4 million.
For 2024, the firm aims to increase momentum in fixed income by expanding its repo offering, increasing its market share in OTC clearing and by moving into short-term interest rate derivatives.
In trading and clearing, financial derivatives benefitted mainly from higher fixed income activity, futures and repo, while lower equity volatility resulted in a decline of margin fees.
For Q4, net revenue increased 8 per cent to €582.4 million. For 2023, results rose 3 per cent YoY to €2,262.8 million.
The increase was assisted by the acquisition of global software company Simcorp, which delivered net revenue volumes of €198 million in Q4.
The group reported a mixed year for the European fund industry in 2023.
Although it benefited from rising prices, the higher interest rates opened up alternative investment opportunities, prompting outflows from equity funds.
For Q4 2023, fund processing increased 8 per cent year-on-year (YoY) to €56.1 million while fund distributions declined 13 per cent YoY to €21.3 million.
For 2023, fund processing increased by 1 per cent YoY to €213.9 million, while fund distributions declined 5 per cent YoY to €85.3 million.
In securities services, custody and settlement were positively affected by ongoing high levels of fixed income issuance activity and higher index levels.
For Q4, securities services reported a 7 per cent YoY increase in net revenue to €371.5 million. For 2023, net revenue increased 35 per cent YoY to €1,510.7 million.
Custody services reported a 3 per cent YoY increase to €152.6 million for Q4 2023, and a 5 per cent YoY rise for 2023 to €615.1 million.
There was a 12 per cent YoY rise in settlement volume recorded for Q4 to €28.9 million, with 2023 volumes rising 9 per cent YoY to €114.4 million.
For 2024, the firm aims to increase momentum in fixed income by expanding its repo offering, increasing its market share in OTC clearing and by moving into short-term interest rate derivatives.
In trading and clearing, financial derivatives benefitted mainly from higher fixed income activity, futures and repo, while lower equity volatility resulted in a decline of margin fees.
For Q4, net revenue increased 8 per cent to €582.4 million. For 2023, results rose 3 per cent YoY to €2,262.8 million.
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