Key messages
- The Group experienced strong growth in revenue and other income compared to the prior period (YTD Q3 2014) exceeding $10 billion (bn) for the first time in a financial year.
- Growth in trading and clearing income came from a significant increase in market activity on the Cash and Derivatives Markets in Hong Kong, in particular during the second quarter of 2015 (Q2 2015), nine months of income from LME Clear following its launch in September 2014 and the commercialisation of LME’s trading fees with effect from January 2015.
- The Group also booked a one-off gain of $445 million on the disposal of a leasehold property in the third quarter of 2015 (Q3 2015).
- Operating expenses increased over the prior period primarily reflecting the cost of additional headcount to support strategic initiatives. The overall increase was mitigated by lower litigation costs and higher recoveries from the liquidators of Lehman Brothers Securities Asia Limited (LBSA).
- The strong revenue growth drove an increase in the EBITDA margin to 77 per cent; 8 per cent higher than YTD Q3 2014 and 7 per cent higher than the year ended 31 December 2014. The one-off gain on disposal of a leasehold property together with the increased recoveries from LBSA accounted for approximately 2 per cent of the increased EBITDA margin.
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