BRUSSELS, May 14, 2025 /PRNewswire/ — Results for the first quarter ending 31 March 2025.
Financial Highlights
Euroclear continues to demonstrate resilience and growth in a challenging environment. Let’s delve into the financial highlights for Q1 2025 that underline this robust performance.
- Record Underlying Business Income: Euroclear achieved an impressive underlying business income of €466 million in Q1 2025, marking a growth of 10% year-over-year due to vigorous business drivers, such as increased fixed income issuance and heightened settlement activity amid market volatility.
- Interest Income Decline: There was a decline in underlying interest and banking income, which fell by 10% to €255 million, reflecting a lower interest rate environment. However, this was somewhat mitigated by increased cash balances.
- Cost Management: Underlying costs rose by 5%, aligning with expectations as Euroclear invests in strategic initiatives while also implementing cost containment measures.
- Improved Operating Margin: The operating margin for business income jumped from 23.4% in Q1 2024 to 27.1% in Q1 2025, showcasing positive operational leverage.
- Stable Profits: Adjusted net profit slightly decreased by 1% to €283 million, with Earnings Per Share holding steady at €90.
- Euroclear Group maintains a solid capital position, exceeding regulatory requirements with a robust Common Equity Tier 1 capital ratio of approximately 61%.
Following a strategic acquisition of a 49% stake in Inversis, their results will be consolidated starting from March 1, contributing €1.2 million in profit.
CEO Commentary: Resilience Amidst Challenges
Valerie Urbain, Chief Executive Officer of Euroclear, reflected on the results, stating: “We have made a strong start to 2025, reporting a 10% increase in business income driven by robust growth in safekeeping fees and settlement income, offsetting the anticipated decrease in interest income as rates have declined. Despite market volatility and uncertainty, our continued growth shows the strength of our diversified, resilient business model.
“Amid recent geopolitical tensions and US tariffs, we’ve closely monitored potential impacts, yet so far, our operation remains largely unaffected. Our commitment to resilience and reliability shines through, as our systems continue to deliver optimal performance during heightened trading volumes.”
Business Performance: Key Metrics
The first quarter of 2025 has showcased exceptional operational performance, highlighted by the following metrics:
| Metric | Q1 2024 | Q1 2025 | Year-on-Year Change |
| Assets Under Custody | €39.1 trillion | €41.4 trillion | +6% |
| Number of Transactions | 80.6 million | 88 million | +9% |
| Turnover | €274 trillion | €336 trillion | +23% |
| Fund Assets Under Custody | €3.3 trillion | €3.6 trillion | +9% |
| Collateral Highway | €1.8 trillion | €2 trillion | +12% |
Remarkably, Euroclear has reached record levels in both settlement and safekeeping activities. Assets under custody surpassed €41 trillion for the tenth consecutive quarter, while turnover soared by 23% amidst strong equity quotations and increased settlement activity fueled by geopolitical uncertainties.
Q1 2025 Business Milestones
Strategic Acquisition of Inversis
In a strategic move, Euroclear has successfully acquired a 49% stake in Inversis, serving to enhance its funds offering and expand its footprint within Southern Europe.
New Branch in Singapore
As part of its Asia strategy, Euroclear received approval for a branch in Singapore, effective February 1, 2025, which will enable a wider range of banking activities in the region.
Innovative Service for US Treasury Repo Market
In an effort to enhance operational efficiency, Euroclear launched a new US Treasury Delivery-Versus-Payment (DVP) repo service, ensuring a seamless experience for cash lenders and counterparties.
Partnership with Microsoft
Euroclear entered a strategic partnership with Microsoft, aiming to leverage cloud technology and AI to transform client experiences and drive growth.
Impact of Russian Sanctions
Financial Implications
- The financial repercussions of Russian sanctions resulted in a 7.5% decrease in interest earnings on sanctioned assets, totaling €1,470 million.
- Euroclear provisioned €944 million as a windfall contribution for Q1 2025 due to EU regulations.
- Direct costs stemming from Russian sanctions totaled €22 million, with a business income loss of €9 million.
- Despite these challenges, Euroclear generated significant tax revenue, contributing €360 million to the Belgian State.
The ramifications of the ongoing geopolitical landscape necessitate a vigilant approach by Euroclear. The imposition of international sanctions following Russia’s invasion of Ukraine has led to a meticulous implementation of protocols to maintain operational integrity.
Euroclear is committed to navigating these challenges, focusing on minimizing risks while upholding compliance with international mandates. The outlook remains focused on resilience as it continues to contribute positively to the financial ecosystem.
About Euroclear
Euroclear is celebrated as the financial industry’s trusted provider of post-trade services. Providing essential settlement and custody solutions for various asset classes, Euroclear stands at the forefront of promoting efficiency and safety within financial markets.
Contact: Pascal Brabant, [email protected], +32 475 78 36 62
