Euroclear H1 2021 – Strong growth in operating income and continued investment

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Key operating indicators remain strong

  • Assets under custody reached € 35.2 trillion at the end of June (H1 2020: € 31.1 trillion, an increase of 13% over one year
  • Record number of cleared transactions settled in the Euroclear group of 149 million, an increase of 6% (H1 2020: 141 million)
  • Euroclear’s Collateral Highway mobilized a record 1.7 trillion euros (H1 2020: 1,500 billion euros), benefiting from the growth of fixed income securities

Continuous progress of strategic plans

Acquisition of the MFEX group

  • On track to complete the acquisition of MFEX in the second half of 2021, as planned.
  • Euroclear Investments’ € 350 million 30-year hybrid corporate bond issue finances MFEX transaction
  • Integration flows established and progressing well

Strengthening the Euroclear network

  • Business drivers remain strong across all asset classes, driving corporate revenue growth of 13%, driven by business gains, increased volumes, record issuance of fixed income and l ” increase in equity valuations
  • Fund assets under custody, up 24% over one year, to € 2,800 billion, before taking into account MFEX financials
  • Continuous investment in systems and infrastructure to improve business resilience

Develop and reshape the Euroclear network

  • Revenue from the “Grow and Reshape” segments increased by 15% year-on-year
  • Collateral management, including securities lending and borrowing, increased 12% year-on-year
  • Euroclear’s global and emerging network, Global Reach, increased commercial revenue by 18% year-on-year
  • Euroclear Bank and the Ministry of Finance of Chile have joined forces to facilitate access to debt for Chilean companies via the Euroclearable market link
  • Continued deployment of the InvestorInsight solution for issuers, including shareholder identification services to support issuer efforts to improve corporate governance
  • Support central bank digital currency exploration projects, such as proof of concept with the Bank of France and a consortium of actors to test the use of the central bank’s digital currency to settle the issue of a French government bond by Agence France Trésor

Governance reforms completed

  • Francesco Vanni of Archirafi appointed Chairman of the Boards of Directors of Euroclear Holding and Euroclear SA / NV
  • Reforms have been implemented to strengthen Euroclear’s corporate governance, including the alignment of the composition of the two boards of directors

Embrace hybrid work

  • Gradual implementation of a new hybrid working model, combining the presence in Euroclear offices with the continuation of remote work
  • Gradual reopening of offices in accordance with local government directives
  • Ensuring business continuity and employee health and safety remain high priorities

Commenting on the results, Lieve Mostrey, CEO, said:

“I am pleased to report that Euroclear achieved a record business performance in the first half of 2021. Our consistent strategy has generated growing financial performance, despite a business environment that remains uncertain.

By continuing to invest in our people and technology, we meet the needs of our clients and the broader market for a robust infrastructure, across all asset classes, as they gain access to our global network of participants. to financial markets. “

About Euroclear

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

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

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SOURCE Euroclear


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