Euroclear marks 12% rise in business income in Q1 2021
Euroclear group, a provider of post trade services for the financial industry, today provided a trading update for the first quarter of 2021.
Business income rose 12% to EUR 358 million driven by strategic progress, sustained settlement activity, higher equity valuations and new issuance by governments and corporations, whereas banking and other income decreased 61% to EUR 24 million as expected, given the lower interest rate environment compared to Q1 2020.
Resulting total Q1 revenues amounted to EUR 382 million, flat year-on-year, despite the reduction of interest-related income.
Operating costs were up 2% to EUR 218 million, in line with expectations, despite the strong growth in business activity.
Net profit fell 4% from a year earlier to EUR 123 million.
Operating metrics were solid in the first quarter of 2021, as settlement volumes increased by 6% year-on-year to 76 million netted transactions processed by Euroclear’s resilient infrastructure.
Assets under custody increased 16% to EUR 34.1 trillion, boosted by equity market recovery, combined with new issuances and business strategy progress.
Lieve Mostrey, Chief Executive Officer, commented:
“We have seen a strong start to the year, a testament to the resilience of our team and robustness of our business model as well the continuation of very high levels of activity across our markets. We remain focused on delivering on our long term strategic priorities for all our stakeholders.”