Growth continued at the KELER Group which offers central securities depository and clearing services. KELER Central Depository Ltd. reported HUF 5.836 billion revenues for 2018, which reflects 2.9 percent increase and HUF 1.684 billion profit before tax. The other member of the Group, KELER CCP Ltd., increased its revenues by 13 percent to HUF 1.5 billion. In line with its medium-term strategy, the KELER Group will continue concentrating on providing effective services to the Hungarian market and on regional expansion.
KELER Group closed the year with growth. Of the two members of the Group owned by the National Bank of Hungary and the Budapest Stock Exchange KELER Ltd., the operator of the only depository of the Hungarian capital market, earned HUF 5.836 billion revenues in 2018, 2.9 percent more than its target and 1 percent more than the amount reported in the previous year.
Billion profit
“At KELER Ltd., the majority of revenues originated from the account management, as in the previous years. In the securities transaction services the income exceeded the 2018 budget by almost HUF 100 million and the revenues from issuer services were almost HUF 50 million higher than planned” - said Chief Executive Officer of KELER Ltd., Attila MÓNUS, commenting on the results. He added that in 2018 the international money, capital and energy markets and the investors’ mood were influenced by external conditions but the growth of the Hungarian economy had a positive impact on the performance of the Company.
KELER Ltd. had a tight control of its expenditure last year too. The Company also reversed provisions recognised in 2017 on one occasion so, all in all, KELER Ltd. closed 2018 with HUF 1.684 billion profit before taxation compared to the planned HUF 314.1 million. KELER Ltd.’s profit for 2018 is HUF 1.450 billion. On the KELER Ltd. General Meeting held on 29 May 2019, the shareholders decided to pay a dividend of HUF 4 billion.
Growth on the clearing side
The other member of the KELER Group, KELER CCP Ltd. which provides clearing house and guarantee services also closed 2018 with attractive figures. The Company reports HUF 1.567 billion total revenues, which match the budget and are 13 percent higher than in 2017. Chief Executive Officer of KELER CCP Ltd. Károly MÁTRAI said that “The fee revenues were HUF 110 million higher in 2018 than in 2017. There was a negligible decline in the total capital market revenues but the energy markets continued to fly, as in the previous years.
In 2018, KELER CCP Ltd. reported HUF 193.1 million profit before tax, which is 41 percent higher than budgeted and increased by 1.4 percent since the previous year. KELER CCP Ltd.’s profit for 2018 is HUF 173.8 million. On the KELER CCP Ltd. General Meeting held on 29 May 2019, the shareholders decided to retain the profit of the reference year.
What are the plans for the Group?
The performance of the KELER Group above last year’s plans is in line with the medium-term strategy.
Attila MÓNUS stressed: “The Group still aims at becoming an important regional actor in depository clearing house and reporting services.” Naturally, both companies will continue developments and upgrading systems in order to operate more effectively and to minimise risks. In 2019, both members of the KELER Group expect further growth.