CLS releases its Annual Report
Following our Annual General Meeting and shareholder briefing on Tuesday 8 May, we have released our Annual Report and consolidated accounts for activity in 2017, available on our interactive site or via a downloadable PDF.
2017 was a pivotal year for CLS. Recognizing the opportunity to deliver more for our clients, we advanced on our growth strategy to expand our product portfolio. This in turn is opening up new opportunities to increase participation, with both the buy and sell-side. We continued to deliver this long-term investment program throughout 2017, focused on building the foundations required to deliver an enhanced product portfolio
CLSSettlement had a record year achieving both the highest value transaction day ever at USD12.0 trillion as well as an all-time high of average daily value of trades settled for the full year of USD5.2 trillion, an increase of 8% compared to the same period last year. While the average daily volume of transactions decreased by 5%, the overall underlying trend for CLSSettlement was one of robust performance, demonstrating the value of reduced risk, improved efficiency and the increased liquidity CLSSettlement provides to clients every day.
From a financial perspective, our results for 2017 represent another year of robust underlying profitability complemented by investment in our infrastructure and in new growth initiatives. Despite reporting a profit after tax of GBP16 million, compared to GBP42 million in 2016, on this underlying basis, 2017 profit of GBP23 million is robust, if slightly down year-on-year compared to 2016 (GBP26 million)*. Underlying expenses are similar year-on-year, while Return on Equity (ROE) at 6.0% vs. 7.4% in 2016, is in line with our expectations, and reflects our investment decisions.
Balancing our clients’ needs today with our plans for future product development is central to our long term success. CLSSettlement remains at the heart of our strategy, and as we continue to deliver the secure and stable settlement service that our clients expect, we will build our business and product portfolio to meet their changing needs. More detail on our product roadmap and participation expansion efforts can be found in the CEO report.
The investments we are making are essential in ensuring a strong financial position and, long term, a sustainable future for CLS. We are exceedingly proud of the progress that we have made at CLS in 2017 and equally confident in the plan that we have for future growth.
We extend to you, our members, shareholders and employees, our sincere thanks for your continued support.