Treasury & Capital Markets

Treasury & Capital Markets

Business summary1

  • Total revenue £161m down 2%
  • Total order intake £78m down 9%
  • Operating profit £36m down 8%
  • Gained new-name customers
  • Launched Misys Quick Start solutions
  • Expanded our SaaS/hosted solutions offerings for Opics Plus and Loan IQ into North America and won five new-name customers
  • Extended value of strategic partnerships
  1. Financial performance measures reported on a like-for-like basis. See the financial review for a reconciliation to as reported measures.

Delivery updates

Get fit: completed (Mar 07-May 08)

  • Expand distribution to cover more opportunities (achieved)
  • Enter new segments ’Buy side’ (achieved)

Win more: started (1-2 years)

  • Target 6-9% revenue growth1
  • Boost services capability and capacity (achieved)
  • Increase usage of partnerships (achieved)
  • Expand in growth geographies
  1. Growth target published in announcement on 23 October 2008 ‘Group Revenue Growth Reiterated’.

Lead: ongoing (2-4 years)

  • Extend product portfolio coverage and functionality
  • Extend into higher value service offerings
  • Increase use of partnerships
Our business

We provide comprehensive integrated solutions and services that enable financial institutions and corporate treasury departments to manage their capital market activities across a significant number of asset classes. We are the global leader in our market, with the highest market share in our chosen sectors.

Our customers

We work with the world’s leading financial institutions and have the largest installed base in our market, with more than 1,200 customers across 85 countries. Our customers’ margins are dependent on speed to market or volume, so we develop and deliver fast, agile and interoperable solutions that are innovative, scalable and flexible.

Priorities and actions
We helped customers respond to tough conditions

Our deep relationships, focused portfolio and mission-critical solutions generated demand from existing customers this year, despite challenging market conditions. We were also quick to spot and respond to new customer priorities. For example, we built enhanced risk management and compliance functionality into Misys Opics and Misys Summit. We have also launched a new, integrated enterprise risk management solution for our client base. New solutions included Misys Summit FT Collateral Management, which helps financial institutions manage counterparty risk, and Misys Eagleye V3.5, which enhances transaction checks and controls.

We continued to win new customers

With many financial institutions delaying IT investments, the number of potential new customers reduced and competition increased. As customers sought to reduce spending and decision cycles became elongated, ILF orders and revenues declined in the fourth quarter particularly in Asia and the USA. Despite this, we identified opportunities and secured over 28 new name customers, including our first accounts in Russia and Turkey. We have achieved particularly strong growth in China and now serve 26 Chinese financial institutions.

We grew our addressable market through Misys Quick Start

Using pre-packaged solutions, Misys Quick Start is a new initiative that enables customers to reduce the cost, risk and timescales involved in implementing solutions - a powerful proposition in the current environment. We launched this service with Misys Opics Plus Quick Start, a complete out-of-the-box treasury processing solution, and we then introduced Misys Summit Quick Start for cross-asset trading. We saw strong demand with several important clients choosing Misys Quick Start since its launch in December 2008.

We enhanced and extended our market-leading solutions

Once again, we successfully combined innovative research and development with effective technical implementation to deliver upgrades across our portfolio. For example, in September 2008 we launched the latest major release of Misys Summit FT V5.3 - which incorporates new modules for equities trading, structured bonds and market risk limits. In October 2008 we introduced Misys e-Opics Plus, a secure online portal through which banks can trade and make payments. We also offered a hosted solution option, or ’software as a service’, for every one of our products, providing customers with faster time to market, improved operating efficiencies, rapid scalability and reduced risk when launching new services.

We are adding value through partnerships

Partnerships are enabling us to enhance customer support, integrate specialist technology in our solutions, improve product development processes and achieve better coverage of regional markets. This year, new strategic partnerships included:

  • HCL CapitalStream Lending Group - integrating HCL’s leading platform for business and commercial loan origination into Misys Loan IQ and we completed our first joint sale to a US bank.
  • SAP - completed our first referral sale of OpicsPlus to a major SAP corporate customer.
  • NS Solutions Corp - promoting, marketing and supporting Misys Confirmation Matching and Opics Plus in Japan, in addition to Summit Systems.