LME reports highest profits since 2015

The London Metal Exchange has reported its highest profits since 2015, buoyed by a recovery in metals markets and lower costs, according to recently filed accounts.

Pre-tax profits in the year to December rose 5 per cent to $109m, allowing the exchange to a pay a $75m dividend to its parent company, Hong Kong Exchanges and Clearing.

A separate filing showed the LME’s clearing business made pre-tax profits of $45m in 2017, against $52m a year earlier, and paid a dividend of $21.5m to HKEX.

The results, which were lodged at the UK’s Companies House earlier this week, provide a granular insight into the profitability of the world’s biggest industrial metals exchange.

HKEX does not break out the results of the LME in its quarterly results statements, reporting only revenue, operating expenses and earnings from its wider commodities and clearing businesses.

HKEX bought the 140-year old exchange in 2012, paying £1.4bn in an attempt to break into the global league of exchanges.

The results also show volumes traded on the LME totalled 157m lots last year, up 0.6 per cent from a year earlier.

In October and November, LME chief executive Matt Chamberlain cut fees on some of its most popular trades in order to boost activity and build bridges with its membership.

This post was originally published here via Google News