Euroclear reveals increase of assets under custody in H1
20 July 2020 Brussels
Image: Shutterstock.com
Euroclear’s Collateral Highway mobilised a record €1.5 trillion in the first half of the year, up from €1.3 trillion in the same period in 2019.
The post-trade services provider also reported a record number of netted transactions settled in Euroclear of 141 million, an increase of 20 percent compared to the first half 2019 for a total value of €461 trillion, which represents a 12 percent growth on H1 2019.
Overall, Euroclear saw strong growth in assets under custody for the first half of 2020 despite the market volatility caused by the pandemic.
Assets under custody reached €31.1 trillion as of the end June, an increase of 3.7 percent year-on-year.
Elsewhere, operating income increased by 1 percent to €730 million, a €5 million increase from the same period the year before.
Despite this, Euroclear says that adverse market conditions mean it does not expect to beat its 2019 annual profit figures.
Interest-related income has been severely impacted by rate cuts as well as lower customer balances, Euroclear explains, and this will result in a yearly decline of approximately 60 percent in banking and other income in 2020, compared to 2019 results.
Euroclear adds: “While we expect to meet the target of business income operating margin of low to mid 30 percent range this year, the material impact of lower interest-related income will result in lower profitability in 2020, compared to 2019.”
Commenting on the H1 results, Lieve Mostrey, Euroclear CEO, notes: “Euroclear delivered a resilient financial and business performance in the first half. Our strategy is proving successful even in the context of an unprecedented global crisis.
“Our robust operating performance and business continuity in such unparalleled circumstances has cemented our reputation as a safe and reliable infrastructure partner for global financial market participants.”
The post-trade services provider also reported a record number of netted transactions settled in Euroclear of 141 million, an increase of 20 percent compared to the first half 2019 for a total value of €461 trillion, which represents a 12 percent growth on H1 2019.
Overall, Euroclear saw strong growth in assets under custody for the first half of 2020 despite the market volatility caused by the pandemic.
Assets under custody reached €31.1 trillion as of the end June, an increase of 3.7 percent year-on-year.
Elsewhere, operating income increased by 1 percent to €730 million, a €5 million increase from the same period the year before.
Despite this, Euroclear says that adverse market conditions mean it does not expect to beat its 2019 annual profit figures.
Interest-related income has been severely impacted by rate cuts as well as lower customer balances, Euroclear explains, and this will result in a yearly decline of approximately 60 percent in banking and other income in 2020, compared to 2019 results.
Euroclear adds: “While we expect to meet the target of business income operating margin of low to mid 30 percent range this year, the material impact of lower interest-related income will result in lower profitability in 2020, compared to 2019.”
Commenting on the H1 results, Lieve Mostrey, Euroclear CEO, notes: “Euroclear delivered a resilient financial and business performance in the first half. Our strategy is proving successful even in the context of an unprecedented global crisis.
“Our robust operating performance and business continuity in such unparalleled circumstances has cemented our reputation as a safe and reliable infrastructure partner for global financial market participants.”
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