Euroclear Sees 95% YoY Jump in Underlying Net Profit for Q1 2023

Post trade services provider Euroclear has published its financial results for the quarter ended March 31, 2023, seeing a strong performance in its underlying business.

Financial Overview for Q1 2023:

• The net profit totaled to EUR 796 million for the quarter, including interest earnings on cash balances arising form the application of international sanctions related to Russia.

• Operating income amounted to EUR 1,380 million, an increase of 215%.

• Business income rose by 1% from EUR 405 million in Q1 2022 to EUR 409 million and interest, banking, and other income jumped 293.4% from EUR 32 million to EUR 971 million on a yearly basis.

Financial Overview Excluding Russia Sanctions Impact:

• Underlying net profit in Q1 2023 increased 95% from EUR 131 million to EUR 256 million.

• Underlying operating income came in at EUR 651 million, increasing 51% compared to EUR 431 million in Q1 2022.

• Underlying business income for the quarter increased 2% from EUR 407 million to EUR 414 million on a yearly basis, hitting a record high.

• Underlying quarterly interest, banking, and other income increased by 871% from EUR 24 million in Q1 2022 to EUR 237 million due to rising interest rates.

• Investment in Euroclear's strategy, coupled with higher inflation have led to underlying operating expenses increasing to EUR 307 million, up 19% compared to the prior year.

• On an underlying basis, earnings per share rose by 95% to EUR 81.4 per share. The EBITDA margin stood at 57.0% at the end of the quarter.

Lieve Mostrey, CEO of Euroclear, said: "We are pleased that Euroclear has delivered another quarter of growth. Our diversified and robust business model continues to serve our stakeholders well, enabling further investment in our client proposition and business resilience as we implement the group's growth strategy."