Brussels-based securities clearing firm Euroclear today released its financial results for the first quarter of 2023, reporting a net profit of EUR 796 million.
The number was largely attributed to interest earnings on cash balances arising from the application of international sanctions related to Russia. This represents a significant increase of 215% in operating income, with business income of EUR 409 million and interest, banking, and other income of EUR 971 million.
Excluding the impact of the Russian sanctions, Euroclear’s Q1 net profit surged by 95% to EUR 256 million on an underlying basis. The company’s underlying operating income also saw a robust increase of 51% year-on-year to reach EUR 651 million.
Additionally, The underlying business income hit a record high of EUR 414 million in Q1 2023, marking a 2% increase compared to the same period last year. The company’s three-year underlying business income CAGR of 9% highlights the growth it has achieved despite the volatility of financial markets, the firm noted.
Meanwhile, quarterly interest, banking, and other income surged by 871% to EUR 237 million on an underlying basis, driven by increasing interest rates. However, Euroclear’s investment in its strategy, combined with higher inflation, has resulted in a 19% year-on-year increase in underlying operating expenses, which totaled EUR 307 million.
Despite these challenges, earnings per share rose by 95% to EUR 81.4 per share on an underlying basis, indicating the company’s strong performance in a difficult environment. With a diversified business model and a track record of robust growth, Euroclear looks set to continue to thrive in the coming years.
We are pleased that Euroclear has delivered another quarter of growth. Our diversified and robust business model continues to serve our stakeholders well, enabling further investment in our client proposition and business resilience as we implement the group’s growth strategy.
Earlier in December last year, Euroclear announced its acquisition of London-based provider of digital access and technology-enabled solutions to private markets, Goji.
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