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REG - LondonStockExGroup - LSEG Q1 2022 Trading Statement

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RNS Number : 4463J  London Stock Exchange Group PLC  27 April 2022

 

London Stock Exchange Group plc: Q1 2022 Trading Update

This release contains revenues, cost of sales and key performance indicators
(KPIs) for the three months ended 31 March 2022 (Q1). All figures quoted in
this release are on an underlying basis. Q1 2022 is compared against Q1 2021
on both a statutory and pro-forma basis. Pro-forma figures assume that the
acquisition of Refinitiv took place on 1 January 2021. Revenues and cost of
sales associated with the BETA+ divestment have been classed as discontinued
and are excluded from all periods. Revenues and cost of sales associated with
the Borsa Italiana Group divestment, which completed in H1 2021, are also
excluded. Constant currency variance is calculated on the basis of consistent
FX rates applied across the current and prior year period. For more
information on accounting treatments and approach to FX please refer to the
"Accounting and modelling notes" section below.

 Q1 2022 highlights - continued strong financial and operational progress

 Note: Unless otherwise stated, variances refer to growth rates on a constant
 currency basis, with the comparator, Q1 2021, on a pro-forma basis which also
 excludes the impact of a deferred revenue accounting adjustment(1).

 ·      LSEG continues to make strong financial and operational progress

 ·      Q1 total income (excluding recoveries) up 6.3% with good growth
 across all divisions; up 6.8% adjusting for  the actions LSEG has taken in
 response to the Ukraine and Russia (U/R) conflict(2)

 ·      Good Q1 performance driven by new business growth and high
 customer retention, building on the strong foundations in 2021

 ·      Data & Analytics up 4.5% on an underlying basis; up 5.1%
 excluding U/R impacts, with Trading & Banking growing; Annual Subscription
 Value (ASV) growth of 4.9% adjusted for U/R, or 3.6% unadjusted

 ·      Capital Markets up 11.9%, with good contributions across Fixed
 Income (Tradeweb), FX and Equities

 ·      Post Trade up 6.6% with broad-based growth

 ·      73% of Group income (excluding recoveries) is highly recurring in
 nature; diversified across customer, activity, product and geography

 ·      Continued achievement of cost and revenue synergies during the
 quarter; £25 million run-rate revenue synergies achieved by end of Q1

 ·      On track to meet all financial targets

 ·      Continued focus on portfolio enhancement: acquisitions of
 Quantile, TORA and GDC, which will enhance our offerings in Post Trade,
 Trading & Banking and Customer & Third-Party Risk respectively, are
 all on track for completion during 2022; divestment of BETA+, with a
 significant proportion of the net proceeds of the divestment to be returned to
 shareholders via a share buyback likely to commence in Q3 2022

(1) The deferred revenue impact is a one-time, non-cash, negative revenue
impact resulting from the accounting treatment of deferred revenue within
Refinitiv's accounts which have been re-evaluated upon acquisition by LSEG
under purchase price accounting rules. This reduced Q1 2021 revenue by £22m,
mainly in Data & Analytics with a smaller impact in the FX business within
Capital Markets. There is no material impact in 2022. More details can be
found in the "Accounting and modelling notes" section

(2) Growth rates excluding the Ukraine / Russia conflict impact have been
calculated by excluding income in the region and from sanctioned customers and
related business from both periods

David Schwimmer, CEO said:

"LSEG has delivered a good first quarter, with strong underlying performance
across all divisions. During the quarter we announced two acquisitions to
enhance our product offerings in Trading & Banking and Customer &
Third-Party Risk. We also announced the divestment of BETA+, which will
simplify and refocus our Wealth Solutions business.

"Our ability to invest for growth, make strategic acquisitions and return
capital to shareholders demonstrates the strength of the Group and its
high-quality recurring revenues. The Group is well positioned and we look
forward to further progress during the rest of 2022."

 

Q1 2022 Summary

Variances are provided on a pro-forma and constant currency basis. Unless
stated otherwise, commentary is provided on the constant currency variance
(excluding the deferred revenue adjustment) to provide insight into
performance on a comparable basis. Revenues and cost of sales associated with
the BETA+ divestment have been classed as discontinued and are excluded from
all periods. Revenues and cost of sales associated with the Borsa Italiana
Group divestment, which completed in H1 2021, are also excluded.

 

 Continuing operations                      Q1 2022  Pro-forma    Variance(2)    Constant Currency Variance(3)  Constant Currency Variance

                                            £m       Q1 2021(1)   %              %                              (excl. deferred revenue adjustment)( 3,4)

                                                     £m                                                         %
 Trading & Banking Solutions                378      372          1.6%           1.0%                           (0.9%)
 Enterprise Data Solutions                  304      279          9.0%           8.8%                           6.5%
 Investment Solutions                       308      274          12.4%          10.8%                          9.4%
 Wealth Solutions                           63       61           3.3%           2.2%                           0.9%
 Customer & Third-Party Risk Solutions      94       85           10.6%          9.9%                           7.8%
 Data & Analytics                           1,147    1,071        7.1%           6.3%                           4.5%

 Equities                                   67       61           9.8%           10.0%                          10.0%
 FX                                         60       57           5.3%           2.7%                           2.4%
 Fixed Income, Derivatives & Other          232      200          16.0%          15.2%                          15.2%
 Capital Markets                            359      318          12.9%          11.9%                          11.9%

 OTC Derivatives                            93       87           6.9%           7.5%                           7.5%
 Securities & Reporting                     64       63           1.6%           5.1%                           5.1%
 Non-Cash Collateral                        24       22           9.1%           10.5%                          10.5%
 Net Treasury Income                        57       55           3.6%           5.2%                           5.2%
 Post Trade                                 238      227          4.8%           6.6%                           6.6%

 Other                                      7        5            40.0%          44.1%                          44.1%
 Total income (excl. recoveries)            1,751    1,621        8.0%           7.6%                           6.3%
 Recoveries                                 80       88           (9.1%)         1.6%                           (0.5%)
 Total income (incl. recoveries)            1,831    1,709        7.1%           7.3%                           6.0%
 Cost of sales                              (240)    (230)        4.3%           2.9%                           2.9%
 Gross profit                               1,591    1,479        7.6%           8.0%                           6.4%

(1) The Q1 2021 comparator is pro-forma and assumes that the acquisition of
Refinitiv took place on 1 January 2021

(2 )Variance is the difference between current and prior year periods using FX
rates prevalent at each time, therefore any changes in the FX rates are
reflected in the variance percentage alongside business performance

(3) Constant currency variance shows underlying financial performance,
excluding currency impacts, by comparing the current and prior period at
consistent exchange rates

(4) Excludes the deferred revenue adjustment further explained in the
"Accounting and modelling notes" section

 

Q1 2022 Highlights

Group Income (excluding recoveries) grew 6.3% at constant currency and up 6.8%
adjusting for the actions LSEG has taken in response to the Ukraine and Russia
(U/R) conflict. The revenue impact of U/R is anticipated to be c.£60 million
in 2022. Most of the impact reflects the suspension of Data & Analytics
services to customers in Russia, with the largest impact in Trading &
Banking.

·      Data & Analytics: revenues up 4.5%; up 5.1% excluding U/R
impacts

o  Trading & Banking Solutions down 0.9%; but grew 0.1% excluding U/R
impacts - Driven by better understanding and servicing of customer needs, with
growth in Banking products and an improved performance in Trading revenues.
Acquisition of TORA, expected to complete in H2, will enhance customers'
ability to trade multiple asset classes across global markets through our
platform

o  Enterprise Data Solutions up 6.5% - Continued acceleration in revenue
growth reflects our investment in broadening and deepening our data &
analytics offering, and innovation in our delivery of this content. This has
reinforced our #1 position in real-time data and continues to support market
share gains in pricing and reference data

o  Investment Solutions up 9.4% - Good growth in FTSE Russell with
subscription revenues up 10.3%. Asset-based revenues rose 17.0%, despite
volatile market conditions over the quarter. Further revenue synergy
realisation in the quarter from cross-selling of FTSE Russell and Refinitiv
data products

o  Wealth Solutions up 0.9% - Steady growth in our subscription-based
services providing data and analytics to Wealth advisory companies.
Contribution from the transaction-orientated BETA+ business moved to
discontinued operations ahead of expected divestment in H2 2022

o  Customer & Third-Party Risk Solutions up 7.8% - Double-digit organic
growth maintained in Q1, reduced on a reported basis by disposal of ERMT
business in November 2021. Strong growth in the core screening business,
WorldCheck, reflecting market share gains and customer demand for
comprehensive, reliable and timely sanctions and KYC data

 

·      Capital Markets: revenues up 11.9%

o  Equities up 10.0% - Robust secondary market activity in Q1, reflecting the
value customers place on the breadth and depth of LSEG's liquidity, especially
during periods of heightened volatility. This more than offsets the impact of
weaker primary market issuance and suspension of securities impacted by the
U/R conflict

o  FX up 2.4% - Strong growth in our leading global dealer-to-client FX
platform, FXall, reflects investment in customer service and platform
functionality. Performance partially offset by weaker volumes on Matching
platform, our dealer-to-dealer FX trading venue. We continue to make good
progress towards transitioning Matching to our modern, proprietary trading
architecture in 2023

o  Fixed Income, Derivatives & Other up 15.2% - Strong performance at
Tradeweb(1) which saw $1.17 trillion of total Average Daily Volume traded in
the quarter, an increase of 11%. Growth was driven by continued market share
gains and a more volatile macroeconomic backdrop

 

·      Post Trade: total income up 6.6%

o  OTC Derivatives up 7.5% - Strong volumes seen across SwapClear,
ForexClear, CDSClear and SwapAgent, as we support OTC market participants'
need for robust risk management and capital optimisation

o  Securities & Reporting up 5.1% - Good volume growth at RepoClear and
EquityClear as they continue to provide an essential service through volatile
markets and the introduction of Central Securities Depository Regulation
(CSDR)

o  Non-Cash Collateral up 10.5% - Mainly driven by an increase in average
non-cash collateral balances

o  Net Treasury Income up 5.2% - Reflecting the benefit of larger cash
collateral balances due to increased clearing activity in Q1

(1 )Tradeweb Q1 2022 results will be released on 28 April 2022 and will
provide more detailed commentary on performance

Statutory financials(1)

 Continuing operations                      Q1 2022  Q1 2021

                                            £m       £m
 Trading & Banking Solutions                378      247
 Enterprise Data Solutions                  304      194
 Investment Solutions                       308      238
 Wealth Solutions                           63       40
 Customer & Third-Party Risk Solutions      94       57
 Data & Analytics                           1,147    776

 Equities                                   67       61
 FX                                         60       39
 Fixed Income, Derivatives & Other          232      141
 Capital Markets                            359      241

 OTC Derivatives                            93       87
 Securities & Reporting                     64       63
 Non-Cash Collateral                        24       22
 Net Treasury Income                        57       55
 Post Trade                                 238      227

 Other                                      7        4
 Total income (excl. recoveries)            1,751    1,248
 Recoveries                                 80       58
 Total income (incl. recoveries)            1,831    1,306
 Cost of sales                              (240)    (171)
 Gross profit                               1,591    1,135

( )

(1 )The comparator Q1 2021 figures are statutory results, incorporating
Refinitiv from acquisition at the end of January 2021. Revenues and cost of
sales associated with the BETA+ divestment have been classed as discontinued
and are excluded from all periods. Revenues and cost of sales associated with
the Borsa Italiana Group divestment, which completed in H1 2021, are also
excluded

 

Contacts: London Stock Exchange Group plc

 Investors
 Paul Froud / Chris Turner - Investor Relations                  ir@lseg.com

 Media
 Lucie Holloway / Rhiannon Davies - Financial Communications     +44 (0) 20 7797 1222

                                                                 newsroom@lseg.com

 

Additional information can be found at www.lseg.com (http://www.lseg.com)

 

 

Q1 investor and analyst conference call:

 

The Group will host a conference call on its Q1 Trading Statement for analysts
and institutional shareholders today at 08:30am (UK time). On the call will be
David Schwimmer (Chief Executive Officer), Anna Manz (Chief Financial Officer)
and Paul Froud (Group Head of Investor Relations).

To access the telephone conference call or webcast please register in advance
using the following link and instructions below:

https://www.lsegissuerservices.com/spark/LondonStockExchangeGroup/events/7c30d30d-da35-461a-8d5e-4314cd811e0e
(https://www.lsegissuerservices.com/spark/LondonStockExchangeGroup/events/7c30d30d-da35-461a-8d5e-4314cd811e0e)
 

·      If you wish to participate in Q&A, questions can be submitted
by clicking the 'Ask a question button' on the page or by emailing the LSEG
Investor Relations team at ir@lseg.com (mailto:ir@lseg.com) . Questions can be
submitted in advance and during the event itself

·      If you wish to ask a question live, you will need to register for
the telephone conference call here:
https://cossprereg.btci.com/prereg/key.process?key=PQ6N49EQ8
(https://cossprereg.btci.com/prereg/key.process?key=PQ6N49EQ8)

·      NOTE: Once you have registered for the conference call, you will
be provided with the information you need to join the conference, including
dial-in numbers and passcodes. Please save this information to your calendar
or print this information

 

Presentation slides can be viewed at https://www.lseg.com/investor-relations
(https://www.lseg.com/investor-relations)

 

Accounting and modelling notes

 

Minor business revenue reclassification - As indicated at Preliminary results
2021

 

To better align with our operating model, some small revenue items have been
reallocated between business lines from Q1 2022. All results in this release
reflect this reclassification. At a divisional level, the impact on the 2021
results previously reported is:

·    £7 million of revenue moves from Post Trade to Data & Analytics

·    £6 million of revenue moves from Capital Markets to Data &
Analytics

 

Deferred revenue accounting adjustment

 

This adjustment is as previously described in 2021. There is no material
impact in 2022. An adjusted variance, excluding the deferred revenue
adjustment, has been presented to show true underlying business growth on the
prior year.

 

As a reminder, the adjustment results from the acquisition of Refinitiv and
the associated purchase price accounting rules. Refinitiv's deferred revenue
balances were subject to a one-time haircut at the time of acquisition. This
was a non-cash adjustment. 2021 saw a negative revenue impact of £25 million,
with £22 million in Q1; £1 million in Q2; £1 million in Q3; £1 million in
Q4. The impact is mostly in the Group's Data & Analytics division, with a
much smaller impact on the Group's FX venues business sitting within Capital
Markets.

 

FX conversion

 

As a result of the acquisition of Refinitiv, the majority of LSEG revenues and
expenses are in USD followed by GBP, EUR and other currencies. All guidance
given by LSEG, including the longer-term targets associated with the
acquisition of Refinitiv as well as specific guidance for the 2022 financial
year, has been given on a constant currency basis.

 

The results for Q1 2022 have been translated into Sterling using the average
exchange rates for the period. The rates for the largest two currency pairs
are shown in the table below.

 

            Average rate     Closing rate at  Average rate     Closing rate at

3 months ended
31-Mar-22
3 months ended
31-Mar-21

31-Mar-22
31-Mar-21
 GBP : USD  1.342            1.317            1.379            1.374
 GBP : EUR  1.196            1.180            1.143            1.173

 

Divisional revenue, gross profit and non-financial KPIs

 

1.   Data & Analytics

 

Results to gross profit (1)

 

 

 Continuing operations                      Q1 2022  Pro-forma    Variance(2)    Constant Currency Variance(3)  Constant Currency Variance (excl. deferred revenue adjustment)(3,4)

                                            £m       Q1 2021(1)   %              %                              %

                                                     £m
 Trading & Banking Solutions                378      372          1.6%           1.0%                           (0.9%)
     Trading                                298      297          0.3%           -                              (2.0%)
     Banking                                80       75           6.7%           5.2%                           3.3%
 Enterprise Data Solutions                  304      279          9.0%           8.8%                           6.5%
     Real Time Data                         195      178          9.6%           9.2%                           6.6%
     PRS                                    109      101          7.9%           8.2%                           6.4%
 Investment Solutions                       308      274          12.4%          10.8%                          9.4%
 Benchmark Rates, Indices & Analytics       137      122          12.3%          10.6%                          10.3%
     Index - Asset-Based                    70       58           20.7%          17.0%                          17.0%
     Data & Workflow                        101      94           7.4%           7.0%                           3.7%
 Wealth Solutions                           63       61           3.3%           2.2%                           0.9%
 Customer & Third-Party Risk Solutions      94       85           10.6%          9.9%                           7.8%
 Total revenue (excl. recoveries)           1,147    1,071        7.1%           6.3%                           4.5%
 Recoveries                                 80       88           (9.1%)         1.6%                           (0.5%)
 Total revenue (incl. recoveries)           1,227    1,159        5.9%           6.0%                           4.1%
 Cost of sales                              (198)    (192)        3.1%           1.5%                           1.5%
 Gross profit                               1,029    967          6.4%           6.9%                           4.6%

 

Non-financial KPIs (1)

 

                                                               Q1 2022  Q1 2021  Variance

                                                                                 %

 Annual Subscription Value growth (%) (5)                      3.6%     3.0%
 Annual Subscription Value growth excl. U/R impact (%) (5, 6)  4.9%     3.0%
 Subscription revenue growth (%) (5, 7)                        3.7%
 Subscription revenue growth excl. U/R impact (%) (5, 6, 7)    3.9%
 Index - ETF AUM ($bn)                                         1,100    956      15.1%
 Index - ESG Passive AUM ($bn) (8)                             167      63       165.1%

( )

(1) The Q1 2021 comparator is pro-forma and assumes that the acquisition of
Refinitiv took place on 1 January 2021. Revenues and cost of sales associated
with the BETA+ divestment have been classed as discontinued and are excluded
from all periods. Revenues and cost of sales associated with the Borsa
Italiana Group divestment, which completed in H1 2021, are also excluded

(2 )Variance is the difference between current and prior year periods using FX
rates prevalent at each time, therefore any changes in the FX rates are
reflected in the variance percentage alongside business performance

(3) Constant currency variance shows underlying financial performance,
excluding currency impacts, by comparing the current and prior period at
consistent exchange rates

(4) Excludes the deferred revenue adjustment further explained in the
"Accounting and modelling notes" section

(5 )The variance is a constant currency variance adjusted for acquisitions and
disposals

(6) Growth rates excluding the Ukraine / Russia conflict impact have been
calculated by excluding income in the region and from sanctioned customers and
related business from both periods

(7 )The variance is a 12-month rolling constant currency variance excluding
the impact of the deferred revenue accounting adjustment. The comparator is
not available due to different methodologies applied to the data for the
periods before the completion of the Refinitiv acquisition

(8) ESG Passive AUM is at 30 June 2021 and prior period comparator is at 30
June 2020. The metric is updated bi-annually

 

2.   Capital Markets

 

Results to gross profit (1)

 

 Continuing operations                  Q1 2022  Pro-forma    Variance(2)    Constant Currency Variance(3)  Constant Currency Variance (excl. deferred revenue adjustment) (3,4)

                                        £m       Q1 2021(1)   %              %                              %

                                                 £m
 Equities                               67       61           9.8%           10.0%                          10.0%
 FX                                     60       57           5.3%           2.7%                           2.4%
 Fixed Income, Derivatives & Other      232      200          16.0%          15.2%                          15.2%
 Total revenue                          359      318          12.9%          11.9%                          11.9%
 Cost of sales                          (8)      (6)          33.3%          12.7%                          12.7%
 Gross profit                           351      312          12.5%          11.9%                          11.8%

 

Non-financial KPIs (1)

 

                                               Q1 2022    Q1 2021    Variance

%
 Equities
 Primary Markets
 New issues                                     27         35        (22.9%)
 Total money raised (£bn)                       2.6        6.9       (62.3%)

 Secondary Markets - Equities
 UK Value Traded (£bn) - Average Daily Value    5.7        4.9       16.3%
 SETS Yield (bps)                               0.66       0.71      (7.0%)

 FX
 Average daily total volume ($bn)              484         471       2.8%

 Fixed income, Derivatives and Other
 Tradeweb Average Daily ($m)
 Rates - Cash                                   387,494    378,323   2.4%
 Rates - Derivatives                            361,041    287,477   25.6%

 Credit - Cash                                  10,793     10,382    4.0%
 Credit - Derivatives                           22,420     16,690    34.3%

( )

(1) The Q1 2021 comparator is pro-forma and assumes that the acquisition of
Refinitiv took place on 1 January 2021. Revenues and cost of sales associated
with the Borsa Italiana Group divestment, which completed in H1 2021, are
excluded from all periods

(2 )Variance is the difference between current and prior year periods using FX
rates prevalent at each time, therefore any changes in the FX rates are
reflected in the variance percentage alongside business performance

(3) Constant currency variance shows underlying financial performance,
excluding currency impacts, by comparing the current and prior period at
consistent exchange rates

(4) Excludes the deferred revenue adjustment further explained in the
"Accounting and modelling notes" section

 

3.   Post Trade

 

Results to gross profit (1)

( )

 Continuing operations       Q1 2022  Pro-forma    Variance(2)    Constant Currency Variance(3)

                             £m       Q1 2021(1)   %              %

                                      £m
 OTC Derivatives             93       87           6.9%           7.5%
 Securities & Reporting      64       63           1.6%           5.1%
 Non-Cash Collateral         24       22           9.1%           10.5%
 Total revenue               181      172          5.2%           7.0%
 Net Treasury Income         57       55           3.6%           5.2%
 Total income                238      227          4.8%           6.6%
 Cost of sales               (34)     (32)         6.3%           9.9%
 Gross profit                204      195          4.6%           6.0%

 

Non-financial KPIs (1)

( )

                                                    Q1 2022  Q1 2021  Variance

%

 OTC
 SwapClear
 IRS notional cleared ($trn)                         324      271     19.6%
 SwapClear members                                   123      121     1.7%
 Client trades ('000)                                658      574     14.6%
 Client average 10-year notional equivalent ($trn)   4.2      4.8     (12.5%)

 ForexClear
 Notional cleared ($bn)                              6,512    5,474   19.0%
 ForexClear members                                  36       35      2.9%

 CDSClear
 Notional cleared (€bn)                              927      627     47.8%
 CDSClear members                                    25       26      (3.8%)

 Securities & Reporting
 EquityClear trades (m)                              647      506     27.9%
 Listed derivatives contracts (m)                    77.8     74.9    3.9%
 RepoClear - nominal value (€trn)                    67.5     55.6    21.4%

 Non-Cash Collateral
 Average non-cash collateral (€bn)                   172.0    160.6   7.1%

 Net Treasury Income
 Average cash collateral (€bn)                       121.5    106.4   14.2%

( )

(1) The Q1 2021 comparator is pro-forma and assumes that the acquisition of
Refinitiv took place on 1 January 2021

(2 )Variance is the difference between current and prior year periods using FX
rates prevalent at each time, therefore any changes in the FX rates are
reflected in the variance percentage alongside business performance

(3) Constant currency variance shows underlying financial performance,
excluding currency impacts, by comparing the current and prior period at
consistent exchange rates

 

Appendix - Total income by type (1)

 Continuing operations            Q1 2022  Pro-forma    Variance(2)    Constant Currency Variance(3)  Constant Currency Variance (excl. deferred revenue adjustment) (3,4)

                                  £m       Q1 2021(1)   %              %                              %

                                           £m
 Recurring                        1,273    1,189        7.1%           6.6%                           4.9%
 Transactional                    414      372          11.3%          10.7%                          10.7%
 Net Treasury Income              57       55           3.6%           5.2%                           5.2%
 Other income                     7        5            40.0%          44.1%                          44.1%
 Total income (excl. recoveries)  1,751    1,621        8.0%           7.6%                           6.3%
 Recoveries                       80       88           (9.1%)         1.6%                           (0.5%)
 Total income (incl. recoveries)  1,831    1,709        7.1%           7.3%                           6.0%

 

(1) The Q1 2021 comparator is pro-forma and assumes that the acquisition of
Refinitiv took place on 1 January 2021

(2 )Variance is the difference between current and prior year periods using FX
rates prevalent at each time, therefore any changes in the FX rates are
reflected in the variance percentage alongside business performance

(3) Constant currency variance shows underlying financial performance,
excluding currency impacts, by comparing the current and prior period at
consistent exchange rates

(4) Excludes the deferred revenue adjustment further explained in the
"Accounting and modelling notes" section

 

Appendix - Total income and gross profit by quarter (1)

 

The table below has used FX rates on a YTD average basis which is the basis
upon which the Group presents its financials. The 2021 results have been
rebased to reflect the minor revenue reclassifications described in the
"Accounting and modelling notes" section. Revenues and cost of sales
associated with the BETA+ divestment have been classed as discontinued and are
excluded in all periods. Revenues and cost of sales associated with the Borsa
Italiana Group divestment, completed in H1 2021, are also excluded.

 

 £m                                                Q1       Q2       Q3       Q4       2021       Q1

 Trading & Banking Solutions                       372      373      373      375      1,493      378
     Trading                                       297      297      296      296      1,186      298
     Banking                                       75       76       77       79       307        80
 Enterprise Data Solutions                         279      282      284      296      1,141      304
     Real Time Data                                178      182      182      188      730        195
     PRS                                           101      100      102      108      411        109
 Investment Solutions                              274      286      294      302      1,156      308
     Benchmark Rates, Indices & Analytics          122      126      136      134      518        137
     Index - Asset-Based                           58       64       62       69       253        70
     Data & Workflow                               94       96       96       99       385        101
 Wealth Solutions                                  61       62       61       65       249        63
 Customer & Third-Party Risk Solutions             85       90       92       92       359        94
 Data & Analytics                                  1,071    1,093    1,104    1,130    4,398      1,147

 Equities                                          61       59       60       61       241        67
 FX                                                57       53       56       57       223        60
 Fixed Income, Derivatives & Other                 200      187      193      205      785        232
 Capital Markets                                   318      299      309      323      1,249      359

 OTC Derivatives                                   87       82       86       103      358        93
 Securities & Reporting                            63       60       60       63       246        64
 Non-Cash Collateral                               22       24       24       25       95         24
 Net Treasury Income                               55       53       47       52       207        57
 Post Trade                                        227      219      217      243      906        238

 Other                                             5        10       9        10       34         7
 Total income (excl. recoveries)                   1,621    1,621    1,639    1,706    6,587      1,751
 Recoveries                                        88       90       90       86       354        80
 Total income (incl. recoveries)                   1,709    1,711    1,729    1,792    6,941      1,831
 Cost of sales                                     (230)    (222)    (227)    (241)    (920)      (240)
 Gross profit                                      1,479    1,489    1,502    1,551    6,021      1,591

( )

(1) Q1 2021 is pro-forma and assumes that the acquisition of Refinitiv took
place on 1 January 2021

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