Euroclear posts 11% Y/Y rise in net profit in Q3 2021

Euroclear group, a provider of post trade services for the financial industry, today provided a business and financial update for the third quarter of 2021.

Q3 YTD 2021 operating income rose 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, whereas banking and other income trajectory has remained 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. MFEX acquisition is now completed, with integration progressing well, Euroclear said.

Net profit increased by 11% to EUR 347 million.

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.

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%.

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.”

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