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Banks

Deutsche Boerse net profit up 11% in fourth quarter, less than expected

FILE PHOTO: The German share price index (DAX) board is seen at the end of a trading day at the German stock exchange (Deutsche Boerse) in Frankfurt, Germany, February 12, 2019. REUTERS/Kai Pfaffenbach/File Photo

FRANKFURT (Reuters) - German exchange operator Deutsche Boerse on Wednesday said it posted an 11% rise in fourth-quarter net profit, less than analysts had expected.

Net profit attributable to shareholders was 236.8 million euros ($287.36 million), up from 213.2 million euros a year ago, the company said. Analysts had expected a profit increase of 16%.

Deutsche Boerse saw a jump in revenue early last year as market volatility helped spark trading. But markets calmed as the year progressed, and low interest rates ate away at net interest income that it earns.

Deutsche Boerse last year outlined a new strategy in which mergers and acquisitions would play a big role.

“We want to continue growing organically as well as inorganically, but not at the expense of our high profitability,” chief executive Theodor Weimer said.

Net revenue in the quarter was 814.0 million euros, up from 756.6 million euros a year ago. That is ahead of 782 million euros expected by analysts.

($1 = 0.8241 euros)

Reporting by Tom Sims; Editing by Chris Reese, Alexandra Hudson

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