Spanish exchange operator BME saw profits rise over 15% in 2014 following strong performance in its equity markets, though its derivatives offering has struggled.
BME reported full-year revenue of €342.5 million, up 11.3% on 2013, resulting in a net profit of €164.9 million, its highest since the beginning of the financial crisis in 2008.
Significant growth in its equities markets was a major contributor, with total turnover of cash trades increasing 25.6% to €884.7 billion year-on-year. Trade volume grew to 71.1 million trades, up 45.8% on the previous year, which BME attribute to increased interest from institutional investors and those using trading algorithms.
However, trading in non-equities suffered from more difficult market conditions in 2014. Derivatives contracts traded declined by 10.7% in the fourth quarter of 2014 compare to the same period in 2013, though across the whole year it grew by 2.9%.
Fixed income trading volume dropped 10.5% for the year compared to 2013, resulting in a fall in revenue for the fixed income unit of 2.8%.
Post-trade services fared well, with settlement revenues up 13% to €22.1 million while BME’s clearing unit saw revenue rise 9.4% to €17.7 million.
However, it’s data business saw the strongest post-trade performance, with sales climbing 15.1%% to €38 million for the year.
As a result, BME is proposing and increase in its dividend of 15%.