Euroclear delivers robust performance in 2020
Provider of post trade services Euroclear today reported a set of robust financial results for 2020.
- Operating income for the full year of 2020 amounted to EUR 1,430 million, flat compared to the preceding year, as strong business income growth offset the impact of lower interest rates.
- Business Income rose 12% to EUR 1,280 million as continued support for clients throughout Covid-19 combined with delivery of strategic initiatives and further business gains.
- Interest, Banking and Other Income, however, was down by 48% year-on-year to EUR 150 million due to a lower interest rate environment.
- EBITDA margin of 46.6% was down 2.8 percentage points compared to 2019, impacted by lower interest income.
- Net profit was flat at EUR 432 million, resulting in earnings per share of EUR 137.2, in line with prior year.
In 2020, Euroclear processed 276 million netted transactions, up 15% year-on-year, equivalent to EUR 897 trillion (approximately 12x Global Economic Product). The Group also marked increased volumes of debt issuance and success of strategic initiatives which drove record Assets under Custody.
Euroclear managed to strengthen its network. The Group reports continued progress in the migration of Irish corporate securities from Euroclear UK & Ireland to Euroclear Bank as Issuer CSD. In addition, all Euroclear Group entities received their CSDR licenses with Euroclear UK & Ireland securing its licence at the end of the fourth quarter of 2020.
Previously announced 2019 dividend of EUR 82.4 per share will be paid as an interim dividend during first quarter 2021. Finally, the Board of Euroclear has signalled its intention to maintain the 2020 dividend at prior year level, to be paid as an interim dividend in second half 2021.