Euroclear registers steep rise in profits in first nine months of 2022
Provider of post trade services to the financial services industry Euroclear today provided an update on its performance for the period to the end of the third quarter 2022.
Euroclear continued to deliver a strong financial performance, with the underlying business performing well and benefitting from its diversified, resilient business model. The group also reported higher interest earnings due to rising interest rates on cash balances.
Excluding the impact of frozen assets due to the Russian sanctions, Euroclear’s underlying business continues to perform strongly. Adjusted net profit rose by 25% to EUR 426 million.
Business income was up 7% to EUR 1,208 million, reflecting continued solid growth of Euroclear’s business lines. The diversification of the business has provided a hedge against market volatility over recent months. Interest, banking and other income increased by 179% to EUR 182 million.
Operating Expenses increased to EUR 811 million, up 12% compared to the prior year, as Euroclear continued to invest in its technology and service offering, as well as being impacted by inflation.
Inflationary pressures on costs, as well as the broader impact of the macro-economic environment, are monitored at the level of each of operating entity. Only Euroclear Bank benefits directly from the compensating effect of higher interest rates.
Euroclear says it will increase its focus on ESG, data-driven and digital innovations and expanding its global reach.
Illustrating this strategic focus, Euroclear enhanced its offering in sustainable finance through an investment in Impact Cubed, a leading provider of ESG tech-enabled analytics and data science solutions. This investment complements Euroclear’s investment in Greenomy, a provider of data and reporting for issuers to comply with EU sustainable finance legislation.
One year ago, Euroclear acquired MFEX as part of its expanded funds platform. Considerable progress has been made to integrate MFEX and enhance the group’s end-to-end funds offering. This is reflected through the new MFEXbyEuroclear branding for all group funds solutions.