Welcome to the 12th edition of your shareholder newsletter. In this edition, we update you on the group’s performance, touch on a major operational milestone in Europe and inform you of our revised timing for deciding on a share buy-back.
Your company’s financial performance remains satisfactory
Despite financial market conditions remaining challenging and uncertain, Euroclear’s trading performance continues to be satisfactory. Operating profit for the first nine months of 2016 is broadly stable when compared to last year. Stringent control of costs has offset slightly lower operating income, which was adversely impacted by foreign exchange rates, in particular the translation of Euroclear UK & Ireland’s results since the post-Brexit referendum devaluation of sterling.
Your company remains a strong and reliable partner for the financial markets, as underscored by the most recent credit agency rating report on Euroclear Bank, which was confirmed recently by Fitch at AA+ with a stable outlook.
Euroclear successfully joins Target2-Securities
In September, the group brought the European Central Bank’s Target2-Securities (T2S) project to fruition, with settlement activity for Euroclear’s ESES CSDs in Belgium, France and the Netherlands migrating successfully to the T2S platform. This was a challenging project and the high standard of our migration has been recognised by many stakeholders. We appreciate the tremendous effort of all those involved across both Euroclear and the relevant markets, together we have ensured a safe transition of a material proportion of Europe’s financial markets to this important European project.
A single decision on annual distributions to shareholders
The Board has decided to postpone until February its decision regarding a share buy-back. The Board considers that, going forward, it should address together the decisions regarding an annual dividend and any possible share buy-back, with the benefit of the annual results and capital plan. We will communicate to shareholders at that time our decision on whether to launch a share buy-back.
As always we welcome your views and feedback and hope you find this newsletter informative.
Marc Antoine Autheman
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