Euronext registers slight rise in FX trading revenue in Q4 2021
Euronext NV (EPA:ENX) today posted its financial results for the final quarter and full year 2021, with FX trading revenue supported by the positive impact of foreign exchange rates.
FX trading reported revenue amounted to €6.1 million in Q4 2021, up 3.9% from the corresponding quarter a year earlier. The result reflected lower trading volumes which were offset by positive impact of foreign exchange rates over the period. The FX trading revenues in the fourth quarter were higher than those recorded in the preceding quarter.
Over the fourth quarter of 2021, US$19.4 billion average daily volumes were recorded, down 3.1% compared to Q4 2020.
On a like-for-like basis at constant currencies, FX trading revenue was down 0.7% in Q4 2021 compared to Q4 2020.
Derivatives trading revenue increased by 21.4% to €14.2 million in Q4 2021 as a result of the consolidation of Borsa Italiana capital markets, strong traction of commodity derivatives and recent commercial developments.
During the fourth quarter of 2021, average daily volume on financial derivatives was 630,533 lots, up 0.4% from the year-ago quarter reflecting a low volatility environment for equity derivatives, while average daily volumes on commodity derivatives was 87,490 lots, up 14.8% from Q4 2020 reflecting successful geographic expansions and an enlargement of the client base.
Euronext revenue capture on derivatives trading was €0.30 per lot for the fourth quarter of 2021.
Across all segments, in the fourth quarter of 2021, Euronext consolidated revenue and income increased to a record level of €370.1 million, up +59.5%, resulting primarily from (i) the consolidation of the Borsa Italiana Group and (ii) solid organic growth. On a like-for-like basis and at constant currencies, Euronext consolidated revenue and income grew +4.3% in Q4 2021, to €243.1 million, compared to Q4 2020.
Non-volume related revenue accounted for 55% of total Group revenue in Q4 2021, compared to 54% in Q4 2020, reflecting a solid fourth quarter for non-volume related business that offset the consolidation of the Borsa Italiana Group trading activities. The operating cost coverage by non-volume related businesses ratio was at 126% in Q4 2021, compared to 118% in Q4 2020.
In the fourth quarter of 2021, the reported net income, share of the parent company shareholders, increased by 67.8% compared to the fourth quarter of 2020, to €112.7 million. This represents a reported EPS of €1.05 basic and fully diluted in Q4 2021, compared to €0.88 basic and fully diluted in Q4 2020.