(MENAFN) In its Wednesday the last year earnings report, Euroclear, a significant European Union securities transactions business, posted a record-high net profit.
The corporation reported a 162 percent rise in earnings to euro1.2 billion (USD1.3 billion), or USD1.3 billion. It was observed that operations involving Russian assets that were frozen as a result of European Union penalties against Moscow accounted for euro597 million (USD641 million), or approximately half of those profits.
The Belgian company acts as a central securities repository for financial institutions that conduct business on European markets and settles and clears securities deals executed on European exchanges. Following penalties against the Russian clearing house in mid-2022, the company stopped doing business with the National Settlement Depository (NSD) of Russia and banned NSD accounts within its system. The action essentially prevented Russians from accessing their Euroclear-held assets.
Dividends, coupon payments, and redemptions of Russian-owned securities have accumulated in Euroclear accounts throughout the year. The bank calculated that as of the end of the last year, its balance sheet had grown to euro124 billion from euro99 billion in 2021. The money was invested in line with the company's risk management policy, which generated a total profit of euro821 million.
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