Credit: LuxSE
At its annual general meeting (AGM) on Friday 14 June 2024, the Luxembourg Stock Exchange (LuxSE) released its financial results for the financial year ending on 31 December 2023, reporting a "solid" performance against the backdrop of a "complex" geopolitical and economic environment.
LuxSE reported operational revenues of €40.8 million for 2023, which represents a year-over-year revenue growth of 7%. The stock exchange also reported a net profit of €10.6 million for the same period, driven by "robust" operational results.
"We are delighted to report that the Luxembourg Stock Exchange has demonstrated a strong performance last year, marked by a significant increase in activity levels across listing, data and trading, which we see as a direct result of our strategic developments. Beyond achieving substantial revenue growth, LuxSE remained the reference exchange for sustainable finance and further expanded its leadership position in international bond listings. We also explored AI solutions and advanced the digital transformation of our core listing system, and we remain committed to driving progress and innovation in these critical areas," commented Julie Becker, CEO of LuxSE.
LuxSE welcomed 13,900 new listings in 2023, a 13% increase year-over-year and representing the highest number of new listings in a single year since 2007. This led LuxSE to increase its global market share in listed international bonds, capturing 34% of the market in 2023, according to figures from Dealogic.
With 42,494 securities admitted on its markets and on the Securities Official List as of 31 December 2023, including more than 38,000 debt instruments, LuxSE reported a 4% increase year over year in the total number of listed securities at year end.
"LuxSE remains the undisputed leader in the listing of international debt securities. However, competition is getting fiercer and through the implementation of our four-year strategic plan, we are working to strengthen our core activities while exploring new business opportunities," stated Alain Kinsch, President of the Board of Directors of LuxSE. "LuxSE has a key role to play both in Luxembourg and in global markets, and we are capitalising on its unique expertise and positioning to ensure that it will remain a relevant, innovative and sustainable exchange in the long term."
Regarding sustainable finance, LuxSE noted that the macroeconomic environment caused a slowdown in the global sustainable bond market in 2023, resulting in a 6% decline in global issuance volumes compared to 2022, according to estimates from Dealogic. Despite the global trend, LGX displayed 554 new green, social, sustainability and sustainability-linked (GSSS) bonds in the course of 2023, a 4% increase compared to 2022. The new GSSS bonds on LGX raised a total of €207 billion for specific green and social projects and sustainable developments across the world, which is consistent with the previous year.
As for its trading offering, in the context of discussions around the Capital Markets Union and the European Union's Retail Investment Strategy, LuxSE made it a priority to further facilitate access to its trading platform in 2023. The exchange welcomed four new trading members and made available LuxTrader, a tool which reduces the costs and complexities of setting up a technical connection to LuxSE's markets for brokers and banks. This and other developments resulted in a 20% increase in the number of trades executed on LuxSE's markets in 2023.
Along with its financial results, LuxSE also published its Sustainability Report 2023. The report reflects the progress made towards the three pillars of the exchange's sustainability strategy, namely climate transition, education and gender equality, and describes how LuxSE is embedding its sustainability strategy into its operations and business strategy.
Futher information is available in LuxSE's Sustainability Report 2023: https://www.luxse.com/about-us/corporate-social-responsibility.
