Euroclear Business and Financial update – Q3 2021


BRUSSELS, Oct. 29, 2021 /PRNewswire/ —  

Financial highlights

  • Q3 YTD 2021 operating income up 9% year-on-year to EUR 1156 million as strong Business Income growth offset lower Banking and Other Income
    • Business Income rose 14% to EUR 1089 million
    • Banking and Other Income trajectory remains stable since Q2 2020, albeit Q3 YTD is 36% lower year-on-year at  EUR 67 million
  • Operating costs increased by 6% to EUR 676 million, including exceptional  costs related to the MFEX acquisition
  • Net profit increased by 11% to EUR 347 million
  • EPS increased 11% to EUR 110.3 per share

Key Operating Metrics remain strong

  • Assets under custody reached  EUR 36.1 trillion an increase of 15% year on year
  • Record number of netted transactions settled in the Euroclear group of 220 million, an increase of  7%
  • Euroclear’s Collateral Highway mobilised a record EUR 1.8 trillion

Continued progress of Strategic Plans

Acquisition of MFEX group

  • MFEX acquisition completed, with integration progressing well
  • Brigitte Daurelle appointed as CEO of MFEX to deliver commercial opportunities from combination of the complementary service offerings 

Strengthening, Growing and Reshaping Euroclear’s Network

  • Income drivers remain strong across asset classes leading to business income growth of 14%, driven by business gains, increased volumes, record issuance in fixed income securities and increased equity valuations
  • Fund assets under custody up 19% to EUR 2.9 trillion, before the inclusion of MFEX business
  • Continued investment in systems and infrastructure to enhance business resilience and customer proposition
  • Growth business lines continue to perform strongly. Collateral Management business income increased 19% year-on-year, while Euroclear’s global and emerging markets network, Global Reach increased business income by 21%
  • Euroclear Bank and Saudi Arabia’s Securities Depository Center Company (Edaa) have agreed to launch a fully Euroclearable link to enable international investors direct access to this local government bond market for the first time
  • Development of shareholder identification services providing transparent in-depth insights to enhance corporate governance, including the recent introduction of  Euroclear Sweden’s Vantage solution and continued rollout of InvestorInsight in ESES
  • Investing in digital and data services that support post trade efficiency including the launch of SettlementDrive, a new service offering analysis into the level of settlement fails observed on individual instruments processed within the Euroclear group
  • Supporting projects to explore central bank digital currencies, such as the successful completion of a pilot with Banque de France and a consortium of actors to test the use of central bank digital currency across a wide range of core securities settlement operations for a French Government bond
  • Continue to develop our group ESG strategy exploring how to support clients’ green finance ambitions, supported by the recent launch with PwC of a whitepaper identifying key opportunities in scaling sustainable finance

Commenting on the results, Lieve Mostrey, Chief Executive Officer said:

"I am pleased to announce that we have continued to deliver robust business performance throughout 2021, and the acquisition of MFEX allows for further commercial opportunities. We continue to invest in our client proposition as we seek to foster safety and sustainability in global capital markets."

About Euroclear

Euroclear group is the financial industry’s trusted provider of post trade services. Euroclear provides settlement and custody of domestic and cross-border securities  for bonds, equities and derivatives to investment funds. Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.

The Euroclear group comprises Euroclear Bank, the International CSD, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear   UK & International. The Euroclear group settled the equivalent of EUR 897 trillion in securities transactions in 2020, representing 276 million domestic and cross-border  transactions, and held EUR 32.8 trillion in assets for clients by end 2020. For more information about Euroclear, please visit www.euroclear.com

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