euroclear group 2016 full year results · 2020-06-18 · euroclear group 2016 full year results...

LONDON • 1 MARCH 2017 Euroclear group 2016 full year results Contact us Christine Vanormelingen Head of Investor Relations Tel: +41 41 768 0707 Email: [email protected] or [email protected] Koenraad Geebels Executive Secretary, Euroclear plc Baarermatte CH-6340 Baar Switzerland Tel: +41 41 768 0700 Email: [email protected] Robust 2016 performance demonstrates Euroclear’s role as the financial industry’s trusted provider of post-trade services The statutory auditor has issued an unmodified report dated 27 February 2017 on the company’s consolidate accounts as of and for the year ended 31 December 2016, and has confirmed that the accounting data reported in the accompanying announcement is consistent, in all material respects, with the accounts from which it has been derived. Client assets held in safekeeping reached EUR 27.7 trillion, flat compared to 2015, and the group settled a record 196 million transactions in 2016, an increase of 3% compared to the prior year, equivalent to EUR 655 trillion in the value of securities processed. Daily average collateral outstanding was flat at EUR 1,072 billion, while Fund assets under custody grew 6% as Euroclear progressed its funds strategy, particularly in the ETF sector. As a result of client activity being stable with the prior year’s record levels, net fee income was flat in 2016. Total operating income of EUR 1,162 million increased 3% compared to 2015. This reflects the benefit to net interest income of recovering interest rates in USD and charging negative interest rates, despite reduced levels of client cash deposits. Administrative expenses increased by 7.7% to EUR 778 million in 2016. After exclusion of the one-off expenses linked to provisions for early retirement, administrative expenses increased by 2.9% resulting from continued investments in regulatory-driven, cyber security and growth initiatives. The group’s operating profit before taxation was EUR 373.4 million. After exclusion of the provisions for early retirement, operating profit before impairment and taxation was EUR 411.0 million, up 2.6% on 2015, reflecting the higher operating income, which compensated the increase in administrative expenses. Profit for the year was EUR 298 million, an increase of 2% compared to a profit of €293 million in 2015. Euroclear continues to maintain a strong and highly liquid capital base. Euroclear Bank retains industry leading credit ratings of AA+ by Fitch and AA by Standard & Poor’s. For shareholder updates, please visit https://www.euroclear.com/investorrelations/ shareholder/shareholder- news.html

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LONDON • 1 MARCH 2017

Euroclear group 2016 full year results

Christine VanormelingenHead of Investor Relations

Tel: +41 41 768 0707Email: [email protected] or [email protected]

Koenraad GeebelsExecutive Secretary, Euroclear plc

Baarermatte CH-6340 Baar Switzerland Tel: +41 41 768 0700 Email: [email protected]

Robust 2016 performance demonstrates Euroclear’s role as the financial industry’s trusted provider of post-trade services

The statutory auditor has issued an unmodified report dated 27 February 2017 on the company’s consolidate accounts as of and for the year ended 31 December 2016, and has confirmed that the accounting data reported in the accompanying announcement is consistent, in all material respects, with the accounts from which it has been derived.

Client assets held in safekeeping reached EUR 27.7 trillion, flat compared to2015, and the group settled a record 196 million transactions in 2016, an increaseof 3% compared to the prior year, equivalent to EUR 655 trillion in the value ofsecurities processed.

Daily average collateral outstanding was flat at EUR 1,072 billion, while Fund assets under custody grew 6% as Euroclear progressed its funds strategy, particularly in the ETF sector. As a result of client activity being stable with the prior year’s record levels, net fee income was flat in 2016.

Total operating income of EUR 1,162 million increased 3% compared to 2015.This reflects the benefit to net interest income of recovering interest rates in USDand charging negative interest rates, despite reduced levels of client cash deposits.

Administrative expenses increased by 7.7% to EUR 778 million in 2016. After exclusion of the one-off expenses linked to provisions for early retirement, administrative expenses increased by 2.9% resulting from continued investments in regulatory-driven, cyber security and growth initiatives.

The group’s operating profit before taxation was EUR 373.4 million. After exclusion of the provisions for early retirement, operating profit before impairment and taxation was EUR 411.0 million, up 2.6% on 2015, reflecting the higher operating income, which compensated the increase in administrative expenses.

Profit for the year was EUR 298 million, an increase of 2% compared to a profit of€293 million in 2015.

Euroclear continues to maintain a strong and highly liquid capital base. Euroclear Bank retains industry leading credit ratings of AA+ by Fitch and AA by Standard & Poor’s.

For shareholder updates, please visit https://www.euroclear.com/investorrelations/shareholder/shareholder- news.html