Euroclear builds on strong momentum in Q3 2025

BRUSSELS, Oct. 24, 2025 /CNW/ -- Results for the first nine months of 2025

Financial highlights 

Euroclear financial performance Q3 2025

Euroclear Russian sanctions Q3 2025

Euroclear cash balances Q3 2025

Euroclear income statements Q3 2025

Record deposit levels, solid business performance and improved operating margin

• In the first three quarters of 2025, Euroclear has achieved solid financial performance and demonstrated sustained growth in most business lines coupled with disciplined cost management.
• Underlying business income increased by 7% year-on-year to reach €1.4 billion, driven by record-high deposit levels, resilient settlement activity, strong ETF flows and solid international fixed income volumes.
• As anticipated, interest and banking income continues to decrease (-10%) to approx. €800 million, mainly due to lower interest rates. Nevertheless, net interest earnings exceeded expectations, supported by stable USD interest rates and higher balances.
• After adjusting for non-recurring items, operating expenses increased by €31 million (+3%) to €1,021 million. Cost mitigation measures continue to progress and helped offset inflationary impacts and increased wage-related costs.
• Inversis, in which Euroclear has held a 49% stake since March 2025, contributed €7 million to the share of results, outperforming expectations. Initial synergies were realised with Inversis transferring its international settlement and custody service to Euroclear Bank. As planned, Euroclear will acquire the remaining 51% in the coming years to accelerate the growth of its funds offering and expand its presence in Southern Europe.
• As result of the positive operating leverage, business income operating margin continues to improve to 27.4% (+3.4% percentage points), reflecting continued growth in core activities and effective cost control.
• Resulting adjusted net profit remains stable at €878 million. Adjusted Earnings Per Share is €27.9¹.
• Euroclear Group's capital position remains very strong, comfortably above regulatory requirements with a Common Equity Tier 1 capital ratio of around 61%².

The impacts of the Russian sanctions are detailed in the last section of this press release.

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Valerie Urbain, Chief Executive Officer of Euroclear, commented:

"Our performance demonstrates the continued strength and resilience of our business. We delivered solid growth in our core activities, with underlying business income up 7% year-on-year to €1.4 billion and our operating margin improving to 27.4%. In the nine first months of 2025, our systems seamlessly processed 267 million transactions worth over €1 quadrillion. This represents a year-on-year increase of 20% and a new record confirming Euroclear's systemic role at the heart of the global capital markets.

In Europe, we continue to implement our vision for a true Savings and Investments Union – one that delivers tangible benefits to issuers, investors and all users through  deepening liquidity pools, ensuring systems are interoperable and asset classes are fungible. Euroclear's plan is clear: providing a single point of access across all financial asset classes to the 27 Member States and the UK. This commitment is supported by innovative projects to develop a modern and interconnected market infrastructure, most recently illustrated by our collaboration with Banque de France to tokenise short-term debt (NEU CP) on our DLT platform. 

We are aware that the European Commission is working on a proposal to provide Ukraine with a Reparations Loan. We expect to receive further information on the envisaged mechanism and will continue to engage with decision-makers. Any proposal should respect international law and internationally accepted legal principles underpinning Western economies, and protect the interests of Euroclear and its stakeholders."

Business performance

The key operating metrics (end of period unless stated otherwise) demonstrate an excellent business performance during the period.

	End Q3 2024	End Q3 2025	YoY evolution	3-year CAGR
Assets under custody	€40 trillion	€42.5 trillion	+5 %	+7 %
Number of transactions	243 million	267 million	+10 %	+5 %
Turnover	€850 trillion	€1,008 trillion	+19 %	+8 %
Fund assets under custody	€3.4 trillion	€3.8 trillion	+10 %	+10 %
Collateral Highway	€1.9 trillion	€2 trillion	+5 %	+2 %
Underlying cash deposits (YTD average)	€22.4 billion	€ 23.9 billion	+7 %	-2 %

Strong market activity boosted Euroclear's operating metrics in the first nine months of 2025, with assets under custody exceeding €42 trillion for the first time, continuing twelve quarters of growth.

Turnover rose nearly 20% from Q3 2024 to over €1 quadrillion by the end of September 2025, driven by solid growth in most European fixed income markets and Eurobonds, as well as increased settlement activity amid heightened market volatility and macroeconomic uncertainty.

Funds depot reached a record €3.8 trillion, supported by the success of ETFs and strong stock valuations.

Daily average outstanding amounts on the Collateral Highway, approx. €2 trillion, remain near peak levels thanks to higher OTCD and repo market activity.

Recent business milestones

Tokenising short-term debt in France

Building upon a robust legacy of innovation, Banque de France and Euroclear have announced the launch of a project to tokenise Negotiable European Commercial Paper (NEU CP), with the objective of modernising short-term debt markets through distributed ledger technology (DLT). The pilot phase aims to implement an interconnected wholesale Central Bank Digital Currency (CBDC) leveraging the ECB's TARGET services. Euroclear's DLT-based platform will be designed with interoperability at its core, supporting seamless integration across financial infrastructures.

Digitising the Eurobond market

Euroclear Bank and Clearstream, the two International Central Securities Depositories (ICSDs), have announced the further digitisation of the Eurobond market, the world's third-largest debt market with a current value of €14 trillion. As from 2026, the two ICSDs will support the issuance of Eurobonds in dematerialised form, eliminating the need for paper certificates and supporting the adoption of automation and new technologies across the entire Eurobond lifecycle. To further reduce fragmentation, the ICSDs have co-developed a new Issuance & Processing Taxonomy as an industry-wide, technology-agnostic standard.

Bank of China (Hong Kong) Limited joins Eurobond depository network

The two International Central Securities Depositories have also appointed Bank of China (Hong Kong) Limited (BOCHK) as common depository, safekeeper and service provider for international securities, also known as Eurobonds. They act jointly as the central hub of ISIN allocation, issuance and deposit for Eurobonds. As a result, issuers benefit from greater investor reach by leveraging the ICSDs' international client bases and multi-currency model. This move allows an even closer connection to the APAC issuance and investor communities for a more efficient servicing of the securities throughout their lifecycle.

Freedom of choice for settlement in Belgium, France and the Netherlands

Euroclear continues to defend open market access and client choice of settlement location in Europe. Following Euronext's unilateral decision to designate its own Milan-based venue for the settlement of equity and ETF/ETP trades for its exchanges in Amsterdam, Brussels and Paris as from September 2026, Euroclear has applied as alternative CSD to allow clients to settle their trades as they do today. Euroclear is confident it is fulfilling the requirements to be a settlement venue for these markets.

Expanding our funds ecosystem in the UK, France and Portugal

In the past months, Euroclear has announced a number of significant funds-related partnerships:

• Euroclear has entered a strategic agreement with Aegon UK, one of the leading retirement and investment providers in the United Kingdom, to deliver its end-to-end funds distribution solution, through Euroclear FundsPlace®. Aegon UK will benefit from an integrated suite of services, enabling streamlined access to mutual funds through a single platform that covers distribution, order routing, settlement, asset servicing, and data services.
• Bourse Direct, a major French player in online brokerage, has become the first retail broker to establish a direct connection with Euroclear Bank, allowing it to streamline ETF settlement and offer its clients access to a wide range of ETFs, supported by Euroclear's secure and efficient infrastructure.
• Novo Banco, Portugal's fourth-largest bank, has selected Euroclear FundsPlace® as its exclusive provider for fund distribution services. Euroclear will manage platform services and automate trailer fee collection for Novo Banco's mutual fund depot. The move will reduce complexity, bring greater transparency and improve efficiency across the bank's distribution model.

Russian sanctions impacts

F inancial impacts of the Russian assets

• Interest earnings from Russian sanctioned assets were €3.9 billion, a 25% year-on-year decrease due to gradual rate cuts. Future interest earnings will continue to evolve in line with future policy rates.
• As required by the EU windfall contribution regulation, Euroclear provisioned €2.6 billion as windfall contribution for YTD 2025, of which €1.6 billion has been paid to the European Commission in July 2025. A second payment for 2025 is expected in early 2026.
• The Russian sanctions and countermeasures resulted in direct costs of €82 million and a loss of business income of €25 million year-to-date.

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Update on Russian sanctions and countermeasures

Russia's invasion of Ukraine in February 2022 resulted in market-wide application of international sanctions. Euroclear considers the application of international sanctions as a key obligation. Therefore, well established processes are in place which have allowed the group to implement the sanctions while maintaining our normal course of business.

As a result of the sanctions, blocked coupon payments and redemptions owed to sanctioned entities continue to accumulate on Euroclear Bank's balance sheet. At the end of September 2025, Euroclear Bank's balance sheet totalled €227 billion, of which €193 billion relate to sanctioned Russian assets.

In line with Euroclear's risk appetite and policies and as expected by the EU Capital Requirements Regulation, Euroclear's cash balances are re-invested to minimise risk and capital requirements.

In May 2024, the European Commission has adopted a new regulation about a windfall contribution applicable to CSDs holding Russian Central Bank assets with a total value of more than €1 million. The profits generated by the reinvestment of these sanctioned amounts dating from 15 February 2024 onwards are required to be contributed to the European Fund for Ukraine. To date, Euroclear contributed approx. €5 billion to the European Fund for Ukraine.

Euroclear continues to act prudently and to strengthen its capital by retaining the remainder of the Russian sanction related profits as a buffer against current and future risks. Euroclear is focused on minimising potential legal, financial, and operational risks that may arise for itself and its clients, while complying with its obligations.

As a direct consequence of the sanctions and countermeasures, Euroclear faces multiple proceedings in Russian courts. Since Russia considers international sanctions against public order, Russian claimants initiated legal proceedings aiming mainly to access assets blocked in Euroclear Bank's books, by claiming an equivalent amount in Russian Ruble and enforcing their claim in Russia. Despite all legal actions taken by Euroclear and the considerable resources mobilised, the probability of unfavourable rulings in Russian courts is high since Russia does not recognise the international sanctions.

Annexes

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Euroclear Bank and Euroclear Holding are the two group issuing entities. The Q3 2025 summary income statements and financial positions for both entities are shown below.

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Figures as of 30 September 2025

About Euroclear
Euroclear group is the financial industry's trusted provider of post trade services. Guided by its purpose, Euroclear innovates to bring safety, efficiency, and connections to financial markets for sustainable economic growth. Euroclear provides settlement and custody of domestic and cross-border securities for bonds, equities and derivatives, and investment funds. As a proven, resilient capital market infrastructure, Euroclear is committed to delivering risk-mitigation, automation, and efficiency at scale for its global client franchise. The Euroclear group comprises Euroclear Bank, the International CSD, as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & International.

¹ Post 10:1 share split as of July 1, 2025
² Based on estimated RWA of around €14.2 billion (of which around €6 billion of RWA are related to Russian assets) and CET1 capital of around €8.7 billion

Contact: Pascal Brabant / [email protected] / [phone]

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SOURCE Euroclear