PR95689

BRUSSELS, April 27, 2022 /PRNewswire=KYODO JBN/--

    Euroclear today provides an update on its financial and operational

performance in the first quarter of 2022.

    Financial Summary

    Euroclear delivered a strong financial and operational performance in Q1

2022. Net profit increased +11% to EUR 134 million.

    Operating income was up +10% year-on-year to EUR 438 million driven by

strong business income growth, up +9% to EUR 405 million and Interest, Banking

and Other income up 39% to EUR 32 million.

    We increased our investments in technology in line with our strategy.

Operating expenses increased to EUR 260 million, up 11% compared to Q1 2021.

    Sanctions related to the invasion of Ukraine have led to increased cash

held on our balance sheet, which are explained further below

    Infographic - https://mma.prnewswire.com/media/1805340/Euroclear_1.jpg

    Note: 2021 figures have been restated to include MFEX pro forma, in order

to allow for like-for-like comparison.

    Operational highlights

    Throughout the first quarter, Euroclear continued to make strategic

progress, while remaining focused on our responsibilities as a critical

financial market infrastructure. This is reflected in the key operating metrics

shown below:

   The integration of MFEX is progressing to plan as we combine MFEX's

established fund distribution platforms with Euroclear's post-trade expertise

to create a new end-to-end funds offering.

    We have also made two strategic investments during the first quarter.

    Firstly, we have further advanced Euroclear's digital strategy through our

investment in Fnality, an international consortium of global banks and

financial market infrastructures focused on building regulated payment systems

to support the adoption of tokenised assets and marketplaces.

    Secondly, we have progressed our sustainable finance and ESG strategy

through an investment in Greenomy, a Belgium based sustainable finance

technology platform. Greenomy helps corporates, credit institutions and asset

managers comply with new European Union sustainable finance legislation by

digitalising the data capturing and reporting processes.

    As part of our commitment to ESG, we are pleased to announce that Euroclear

has taken the important step to reduce its global carbon footprint by

committing to the Science Based Targets initiative (SBTi). We will now set CO2

reduction actions with the commitment to achieve net-zero value chain Green

House Gas (GHG) emissions by no later than 2050.

    Implications from the invasion of Ukraine and Sanctions

    Our thoughts are with those affected by the humanitarian crisis resulting

from the invasion of Ukraine. We have focused on supporting our staff,

especially those of Ukrainian and Russian origin, as well as those in bordering

countries.

    Euroclear is complying with the international sanctions imposed in response

to the invasion of Ukraine and has suspended all transactions with sanctioned

entities since 28 February. In addition to ensuring all the sanctions are

applied immediately and completely, our teams are supporting clients diligently

in managing the exceptional situation. We are working closely with clients to

apply all new rules fully and according to the spirit of the sanctions.

    A consequence of the sanctions is that assets owned by sanctioned parties

are blocked in the respective financial market infrastructures, including

Euroclear. As the assets mature through their lifecycle, cashflows (e.g.

coupons and redemptions) that are normally transferred to the underlying

parties accumulate on our balance sheet for as long as the sanctions remain in

place. We do not expect these sanctions to affect our financial performance.

During the first quarter, Euroclear Bank's balance sheet increased by €23

billion year-on-year, for which the company is working on the mitigation of

potential regulatory capital requirements.  

    In light of these circumstances, the Board of Euroclear considers it to be

prudent to wait until the second half of 2022 to formally decide on the

dividend payment of EUR 88.5 per share (equating to a total of EUR 279 million)

as announced in its full year results.

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

    "The invasion of Ukraine is deeply troubling and our thoughts are with all

who are impacted. As a financial market infrastructure, we have an important

role to play in a turbulent world. I am proud of the staff response as our

people mobilised swiftly to apply the sanctions; to support clients during the

exceptional circumstances; and to contribute to relief efforts for those

affected. From a financial and operational perspective, Euroclear continues to

perform very well, achieving another strong quarter as we continue to deliver

on our strategy."

    Appendix: Financial Statements for Euroclear Bank and Euroclear Investments

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    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 992 trillion in securities transactions in

2021, representing 295 million domestic and cross-border  transactions, and

held EUR 37.6 trillion in assets for clients by end 2021. For more information

about Euroclear, please visit www.euroclear.com　

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    Source - Euroclear