Status: 10/20/2022 10:00 a.m
If the markets are more turbulent, Deutsche Börse will benefit. In the third quarter, the DAX group was able to grow strongly thanks to the turnaround in interest rates and the increased trading volume with gas products.
With its figures for the third quarter, Deutsche Börse far exceeded analysts’ expectations. Compared to the same period of the previous year, the group achieved a profit increase of 24 percent to 373 million euros. Analysts had only expected growth of 16 percent.
The DAX group owes its growth to the currently difficult market environment and interest rate hikes. The turnaround in interest rates by the US Federal Reserve (Fed) brought Deutsche Börse an increase in net interest income in banking business of more than 540 percent. While the company earned EUR 11.4 million in this segment in the previous year, net interest income rose to EUR 73.6 million in the third quarter.
More trade in gas products
The volatile market for gas and power products also boosted the business with commodities and financial derivatives. Net revenue in the trading and clearing segment, which also includes the EEX power exchange in Leipzig, rose by 31 percent to EUR 553.6 million. As a result, total net sales increased by 30 percent to 1.09 billion euros in the third quarter.
In its report, Deutsche Börse writes that the increase is primarily based on the higher trading volume of financial derivatives. This is due to higher average fluctuations in the market and an increase in the volume of trading in gas products.
However, the lucrative business areas also harbor risks: According to Deutsche Börse in the financial report, there have been “considerable increases in price and volatility” in many of the gas and electricity contracts processed by the clearing house of the electricity exchange. Should the trading volume at the clearing house European Commodity Clearing AG fall below plan in the future, this represents a business risk.
forecast increased
Thanks to the ongoing cyclical tailwind, Deutsche Börse has once again raised its forecast for the current year. Net sales are now expected to increase to over 4.1 billion euros for the year. Previously, the goal was “well over” 3.8 billion euros. Deutsche Börse wants to bring in more than 2.3 billion euros in earnings before interest, taxes, depreciation and amortization (Ebitda). Previously, she had targeted more than 2.2 billion euros.