Euroclear, a provider of post-trade services, has released its financial results for the 2021 financial year. According to the report, the platform saw an 8% surge in the net profit for the year, rising to EUR 1467 million year-over-year.

Euroclear’s Business Income Has Grown By 15%

Euroclear has been witnessing sustained growth over the past months. Its business income rose by 15% YoY, which offset the impact of lower interest rate on total operating income. The trading firm has also expanded its investment in human capital and technology systems, hitting EUR 919 million in operating expenses. This represents a 7% increase from its figures the previous year.

The company has been maintaining a low-risk profile and a strong capital position, which are very important for the acceleration of growth.

Euroclear has also been reporting strong operating metrics across all its business lines. Presently, the firm is driving its business income through the number of processed transactions and the number of assets under custody.

According to the report, assets under custody rose by 15%, hitting EUR 37.6 million in 2021. However, the group noted that 50% of its business income is coming from fixed income fees. These are charged on the nominal value of the securities in contrast to equities.

The firm is enjoying an impressive and exciting foundation for its business model since the market valuations do not have an impact on the nominal value.

Euroclear Combines MFEX To Offer Long-Term Shareholder Value

The report also indicated that Euroclear processed 295 million netted transactions in 2021, which is worth EUR 992 million in monetary equivalent. Its growth business lines have seen impressive results than the core business. The company’s collateral highway surged 27%, hitting a record average daily volume of EUR 1.9 trillion in 2021.

The integration of MFEX business into the platform has also helped to expand Euroclear’s business model. MFEX has a well-established fund distribution platform, which has created a new end-to-end offering for clients of Euroclear. The company explained that the acquisition of MFEX will offer long-term value to its shareholders.

Euroclear says it’s expecting cost and revenue synergies of at least EUR 25 million when the integration is complete.