Euroclear Sees 11% YoY Rise in Net Profit in Q3 2021

​Fazzaco learned that Euroclear group, a provider of post trade services for the financial industry, has posted its business and financial results for the third quarter of 2021, showing a year-on-year rise in the main financial metrics.

The company' s operating income reach EUR 1,156 million in Q3 YTD 2021, up 9% year-on-year, due to the strong Business income growth which offsets the lower Banking and Other Income. Business income increased by 14% to EUR 1,089 million, while banking and other income has remained stable since Q2 2020, despite Q3 YTD being 36% lower than the same period last year at EUR 67 million.

Operating costs rose 6% to EUR 676 million, including one-time costs associated with the MFEX acquisition. According to Euroclear, the MFEX acquisition is now complete, and integration is proceeding smoothly. As a result, the company's net profit grew by 11% to EUR 347 million.

Furthermore, the business income growth is driven by strong incomes across asset classes, including business gains, increased volumes, record issuance in fixed income securities and increased equity valuations. Also, the business growth lines are still performing well. Business income for Collateral Management climbed 19 percent year over year, while business income for Euroclear's worldwide and emerging markets network, Global Reach, increased by 21%.

“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,”said Lieve Mostrey, Chief Executive Officer at Euroclear.

Fazzaco recently reported that Euroclear has tied with Edaa to Launch New Post Trade Link in Saudi Arabia.