BRUSSELS, April 30, 2024 /CNW/ -- Results for the first quarter ending 31 March 2024 Financial highlights (excluding impacts from Russian sanctions)  On an underlying basis, business income reached €423 million, an increase of 2% year-on-year. When excluding an exceptional billing adjustment, underlying business income would have increased by 3% compared to last year. Quarterly underlying interest income increased by 19% to €283 million driven by prevailing interest rates. Underlying operating expenses increased by 5% to €321 million. Following a step-up in investment in 2023 to support our strategic ambition to enhance digital capabilities and IT infrastructure, expenses growth is trending back towards the 'through-the-cycle' target of 4-6% on a full-year basis. Underlying operating profit increased by 12% to €385 million and underlying net profit increased by 13% to €289 million, supported by a very robust business performance and helped by sustained high interest rates. Underlying earnings per share rose by 13% to €91.8 per share, reflecting the continued increase in net profit. Underlying EBITDA margin increased by 1.7 percentage points to 58.7% on year-on-year basis. The impacts of Russian sanctions are highlighted in a dedicated section at the end of this press release. Euroclear Holding (€ m)   Q1 2023 Russian sanctions impacts   Q1 2023 Underlying   Q1 2024 Russian sanctions impacts Q1 2024 Underlying   Underlying vs 2023 Operating income 1,380 729 651 2,289 1,583 706 55 8 % Business income 409 -5 414 416 -6 423 9 2 % Interest, banking & other income 971 734   237 1,872 1,589 283   46   19 % Operating expenses -315 -9 -307 -338 -17 -321 -14 -5 % Operating profit before Impairment 1,065   720   344 1,951 1,566 385   41   12 % Impairment -2 -1 -1 -2 0 -2 -1 Pre-tax profit 1,063 720 343 1,949 1,566 383 39 11 % Tax -267 -180 -87 -485 -391 -94 -7 -8 % Net profit 796 540 256 1,463 1,174 289 33 13 % EPS 81.4 91.8 Business income operating margin 25.9 % 24.1 % EBITDA margin 57 % 58.7 %   Lieve Mostrey, Chief Executive Officer of Euroclear Group, commented: "Euroclear continues to perform extremely well, as we achieved another very strong quarter and delivered on our strategy, particularly in the funds business. We made significant progress in developing Euroclear FundsPlace by teaming up with new partners such as iCapital or Spuerkeess and making a strategic investment in blockchain-based funds marketplace IZNES. Providing access to a wide range of funds services, Euroclear FundsPlace delivers risk-mitigation, automation and efficiency at scale to a growing number of clients. In this first quarter of 2024, the Russian sanctions and countermeasures continued to have a material impact on our operations. We are closely following the discussions at EU level about the use of profits generated by the Russian immobilised assets. Our teams continue to respond well to this unprecedented situation and remain focused on minimising the legal, operational, financial and reputational risks for our company and our clients while maintaining normal business operations.   As Valérie Urbain is now taking over as CEO of Euroclear, I feel proud and honoured to have been able to lead Euroclear's growth journey and further reinforce our position as trusted financial market infrastructure. The dedication of our colleagues across all locations, the support of all Euroclear stakeholders – including the Board, our shareholders, customers and partners – have been critical to our success. I am very grateful to everyone involved and will keep Euroclear close to my heart. I know that I leave the company in safe and capable hands." Business performance  The key operating metrics (end of period unless stated otherwise) demonstrate a strong business performance during the period. Q1 2023 Q1 2024 YoY evolution 3-year CAGR Assets under custody €36.6 trillion €39.1 trillion +7 % +4.6 % Number of transactions 79.1 million 80.6 million +2 % 1.9 % Turnover €281 trillion €274 trillion -3 % +4.7 % Fund assets under custody €2.9 trillion €3.3 trillion +13 % +6.5 % Collateral Highway €1.75 trillion