Euroclear recorded an increase of 9% for operating income in 2018, largely driven by a record number of settled transactions and growth in its collateral business.
Business income for the year reached over €1 billion, up 4% as its “open architecture model and strategic initiatives captured the benefits of positive market conditions,” it stated.
Banking and other income increased by over one-third to €256 million, driven by US interest rates.
Euroclear processed a record number of settled transactions over the year, equivalent to €791 trillion by value, an increase of 8%. The Euroclear Collateral Highway mobilised a yearly average of €1.2 trillion, up 7%, and assets under custody reached €28.8 trillion.
“Euroclear has had an excellent year, with key business metrics reaching record levels, demonstrating the attractiveness of our proposition and focused strategy. Looking forward, we will continue to invest in our customer offer and focus on delivering our strategic objectives for the benefit of all our stakeholders,” said Lieve Mostrey, CEO of Euroclear.
The Belgium-based central securities depository (CSD) has become a key focus for other financial institutions, including the London Stock Exchange Group (LSEG) which purchased a 4.92% stake last month, and Intercontinental Exchange (ICE) which increased its share to 10%.
Meanwhile, Euroclear made its own investment into fixed income FinTech firm Algomi, and in July it implemented new technology, provided by Tata Consultancy Services, for Euroclear Finland, marking the first transformation in Europe of a CSD replacing its legacy technology.