Euroclear reports results for the year ending 31 December 2018
Euroclear will hold a presentation for investors today, March 11, with a video streaming service available on https://www.euroclear.com .
Financial Highlights
– Operating income increased 9%, compared to FY 2017, to EUR 1335 million
– Business Income rose 4% to EUR 1079 million as our open architecture
model and strategic initiatives captured the benefit of positive market
conditions
– Banking and Other Income increased by 39% to EUR 256 million, boosted by
higher US interest rates
– Operating costs were broadly stable at EUR 814 million as continued
investment in our customer proposition and regulatory-driven initiatives
were offset by tight control of costs
– Net profit was up 36% to EUR 322 million
– EPS was up 21% to EUR 102.3 per share, compared to EUR 84.6 per share in
2017
– Board indicates an interim dividend of EUR 55 per share. Dividend
expected to be paid in fourth quarter 2019 as a consequence of
successful corporate reorganisation
Key Operating Metrics
– Record number of netted transactions settled in the Euroclear group
equivalent to EUR 791 trillion by value, an increase of 8% compared to
2017, and approximately 10x Global GDP
– The average value of securities held on behalf of Euroclear clients
continued to grow in 2018 to EUR 28.8 trillion compared to EUR 28.4
trillion in 2017
– Euroclear’s Collateral Highway mobilised a yearly average of EUR 1.2
trillion, up 7%
– Number of fund orders routed by Euroclear increased 4% to 10.9 million
in 2018
Strategic Update
Remain focused on delivering our three strategic objectives to enhance our customer proposition: strengthening our network, growing our network and reshaping our network.
Highlights from 2018:
– Launch of Single CSD access to the ECB’s T2S platform, providing an
efficient gateway to Eurozone liquidity for international investors
– Continuing to invest in core systems, enhance cyber resilience and meet
the requirements of incoming regulations, including CSDR
– Client feedback on collateral management solutions remains positive and
Euroclear was awarded top honours in the Global Custodian Tri-Party
Securities Financing survey
– Strong pipeline of emerging markets who are attracted to
become ‘Euroclearable’ to facilitate international investment
– Exploring new opportunities to provide data services that support
clients in optimising collateral and liquidity
Corporate Evolutions
– Successfully completed the relocation of the ultimate holding company to
Belgium, following almost unanimous approval from our shareholders. This
guarantees that the Company’s legal seat is located inside the European
Union
– Shareholders also approved amendments to the articles of association,
meaning the Company now has a single class of ordinary shares
– The Board recognises the need to provide a long-term liquidity solution
available to all shareholders and is reviewing options to ensure this is
completed in an orderly manner
