BUSINESS RESILIENCE, STRATEGIC OUTPERFORMANCE
I am very proud that Euroclear has made such good progress in 2021 and I would like to focus on two key reasons that we achieved this.
Firstly, we continue to demonstrate the resilience of the group throughout the disruption caused by Covid-19, which resulted in a substantial 23% increase in transaction volumes over the past two years. During this period, our service levels remained high and our systems performed well.
Our Euroclear colleagues have been central to en-suring the business continuity that was at the heart of last year’s outstanding performance. I would like to thank them all for their dedication and resilience in the face of the continued uncertainty and challenges presented by the pandemic. Our people have shown great professionalism in adapting to new ways of working and they continue to exceed expectations in support of our clients.
Secondly, we continued to accelerate progress on our three strategic pillars: strengthening, growing and reshaping the Euroclear network to create long-term, sustainable growth.
The benefits of delivering on these strategic objec-tives are evident in 2021’s results. Two years ahead of plan, business income margin growth has outpaced our 2023 financial targets and offset a weaker interest rate environment. We continue to invest in strategic initiatives to adapt our technology capabilities and deliver product enhancements to support future growth. We took an important step with the acquisi-tion of MFEX, a leading global digital fund distribution platform, which enhances and extends Euroclear’s customer proposition in funds.
As I write to you today, a strategic review led by man-agement and the Board has just been conducted to refresh our strategy for the future and create an ambi-tious set of new targets. We will outline our vision and growth objectives later in the second quarter of 2022.
CONTINUING TO INVEST IN OUR FUTURE
Euroclear is in robust health and remains well positioned to grasp the significant opportunities we see ahead. All of Euroclear’s operating entities today hold a licence under the CSD Regulation, where required, representing a hall-mark of quality, and these entities together play a crucial role at the core of the global capital markets ecosystem. We therefore continue to invest carefully across our busi-ness — in our people, technology, regulatory imperatives, and customer proposition — as a systemically important financial market infrastructure.
It is key for all participants to feel they have a trusted partner through whom assets can be held and mobi-lised safely, with transactions taking place efficiently and reliably. Investment in Euroclear’s operating systems and technology platforms has been crucial in seamlessly and securely supporting the sustained increase in transaction volumes over the past year.
Investment in resilient, scalable systems means Euroclear is in a strong position from which to play a vital economic and social role within the global economy as the industry further harnesses opportunities from leveraging data and the rise of sustainable finance.