ISE primary business and revenues increase

Exceptional charges dragged profits down by nearly €1 million at the Irish Stock Exchange (ISE) last year, but the market still saw primary business increase and overall annual revenues rise by 4%.

New figures show that total revenue for 2011 amounted to €21.3 million — up by 4% on 2010 levels. However, pre-tax profits for the ISE fell by €900,000 to €4.6m; on account of a one-off exceptional pension charge.

The €2m charge arose from the decision to close the ISE’s defined benefit pension scheme, during the year, and replace it with a defined contribution plan.

Primary market business — from listing international funds and debt securities — which represents 64% of overall ISE revenue, recorded a slight increase from €13.6m to €13.7m.

Irish market business — from equity listings, membership fees and information products — represents 32% of ISE revenue, and increased by 13% during 2011 to €6.9m.

The rise in Irish business benefited from a 14.2% rise in equity trading volumes here; while the stagnant primary market business was due to a low level of product issuance, globally, in recent years.

ISE chief executive Deirdre Somers said that “a strong performance” had been delivered in 2011, despite the ongoing challenging environment facing international capital markets.

“After the turbulence of 2009 and 2010, there was some improved stability in the markets during 2011 and this has been reflected in the Irish Stock Exchange’s revenues. We have seen a strong performance across our diverse range of revenue streams,” she said.

With regard to the current year, Ms Somers added: “We will continue to focus on developing our business, identifying new sources of revenue, while delivering our existing services efficiently and cost-effectively.”