BRUSSELS, July 19, 2024 /CNW/ -- Results for the first half year ended 30 June 2024 Highlights Euroclear achieves strong results driven by solid operating and interest income Underlying operating income increased by 5% to reach a record €1.45 billion.  Business income increased by 3% to €865 million1, reflecting continued solid performance of Euroclear's core business as settlement and safe keeping activities reached new record levels. H1 2024 underlying interest income increased by 9% to €586 million in the context of a sustained high interest rates environment and gradual policy rate cuts. Pace of cost growth is slowing progressively After a step-up in investment in digital capabilities, workforce and IT infrastructure in 2023, the growth of underlying operating expenses slowed to 5% in H1 2024. Euroclear remains focused on cost mitigation while making the necessary investments in its strategy, including the improvement of operational resilience, the modernisation of CSDs' core platforms and the reinforcement of non-IT resources. Growing shareholder returns and strong capital position Underlying earnings per share increased by 7% to €191.4, in line with continued increase in net profit.  On 19 July 2024, Euroclear paid the previously announced dividend relating to the 2023 underlying business results of €210 per share, representing an 82% increase compared to the prior year dividend. Euroclear's group underlying capitalisation remains very strong and comfortably above capital requirements with an underlying Common Equity Tier 1 capital ratio above 50%2. Euroclear acquires strategic stake in Inversis Euroclear today announced it has acquired a stake of 49% in Inversis, a Spanish provider of global investment technology solutions and outsourced financial services, with a committed plan to full ownership by end 2027. The acquisition aligns with Euroclear's long-term growth objectives and strengthens Euroclear's presence in Spain. The full press release is available in the press section of Euroclear's website. Russian sanctioned assets In July 2024, Euroclear will make a first payment of €1.55 billion to the European Fund for Ukraine following the recent implementation of the EU regulation on the windfall contribution. This adds to the €836 million of corporate taxes to be paid to the Belgian State on the profits related to the Russian assets in H1 2024. The impacts of Russian sanctions are detailed at the end of this press release. Euroclear Holding (€ m) H1 23 Russiansanctionsimpacts H1 23underlying H1 24 Russiansanctionsimpacts afterWindfallContribution H1 24underlying Underlying vs 2023 Operating income 3,107 1,730 1,377 3,095 1,644 1,451 75 5 % Business income 827 -11 838 852 -13 865 27 3 % Interest, banking & otherincome 2,280 1,742 539 3,963 3,376 586 48 9 % Windfall contribution -1,719 -1,719 0 0 Operating expenses -649 -21 -628 -705 -48 -657 -29 -5 % Operating profit beforeImpairment 2,458 1,710 748 2,390 1,596 794 46 6 % Impairment 0 0 0 -3 0 -3 -3 Pre tax profit 2,458 1,710 749 2,387 1,596 791 42 6 % Tax -614 -427 -187 -1,024 -836 -189 -2 -1 % Net profit 1,844 1,282 562 1,363 760 602 41 7 % EPS 585.9 178.5 432.9 191.4 Business incomeoperating margin 21.5 % 25.1 % 24.0 % EBITDA margin(EBITDA/oper.income) 80.9 % 58.3 % 58.7 % Valerie Urbain, Chief Executive Officer of Euroclear, commented: "This is my first set of results as CEO of Euroclear and I am proud to announce continued strong results as clients entrusted us with record levels of safekeeping and settlement volumes. Our commitment to client satisfaction, operational excellence and innovation has driven this excellent performance. With an ambitious strategy and a committed team, Euroclear aims to extend its position as a European leader with a global footprint. Already in 2024, we have taken steps to further support the financing of the real economy by making capital markets more integrated, liquid, and efficient. Not only have we connected global investors to the world's tenth largest economy, South Korea, but we have also put in place a renewed focus on contributing to Europe's strategic autonomy and Capital Markets Union. Such efforts are of critical importance given the pressing need to finance the green and digital transition around the globe. In addition to delivering a robust underlying business performance, Euroclear continues to diligently implement the international sanctions on Russian assets. Euroclear is also complying with its important obligations to put the windfall contribution into effect and will soon make a first payment of €1.55 billion to the European Fund for Ukraine." Business performance The key operating metrics (end of period unless stated otherwise) demonstrate an excellent business performance during the period. H1 2023 H1 2024 YoY evolution 3-year CAGR Assets under custody €36.8 trillion €39.6 trillion