The KELER Group – the provider of central securities depository and clearing services – being on the increase for years closed the past year with growth. The revenue of KELER Central Depository Ltd. reached HUF 6.643 billion, representing a 13.8% increase in annual comparison, and exceeding the target value by 8.2%. The total revenue of KELER CCP, the other member company of the KELER Group was HUF 1.91 billion, which, apart from representing a 22% increase compared to 2018, also exceeds the target set for 2019 by 6%. In accordance with its strategy, the KELER Group will continue to concentrate on providing services to its existing partners in the Hungarian market as well as looking for possibilities for expansion in the international markets.
As in the previous years, the KELER Group, owned by the Central Bank of Hungary, achieved growth as well as a double digit increase in terms of revenues. One of the two member companies of the Group is KELER Ltd., the operator of the only depository of the Hungarian capital market, the other member company is KELER CCP Ltd., providing guarantee and clearing services.
Exceeding the targets
The total revenue of KELER Ltd. (KELER), the national depository, was HUF 6.643 billion in 2019, representing a 13.8% increase compared to the previous year, and exceeding the revenue target of the company by 8.2%. “In the favourable economic environment, after a long time, KELER has increased its portfolio-based fee incomes. This was necessary, on the one hand, to comply with the legislation, on the other hand, due to the infrastructure developments and the increase in the personnel and IT-related costs. Apart from the fee increase, due to the organic growth of the portfolios and the number of transactions, KELER’s revenue exceeded the target revenue by almost HUF 300 million” outlined Bence Marosi, CEO of KELER, the most important achievements of the past year.
The vast majority of KELER’s revenues, 74%, derives from securities trading services, in accordance with the previous years. Bence Marosi emphasised: “In this area, KELER’s revenue exceeded the target revenue by HUF 214 million. Moreover, a revenue of HUF 40 million higher than expected derived from issuer services, while the company achieved a revenue of HUF 50 million higher than expected from custody.”
Double digit excess from clearing
The other member company of the company group, KELER CCP Ltd. (KELER CCP), providing guarantee and clearing house services also witnessed a growth in 2019, and realised a revenue higher than planned. The total revenue of KELER CCP was HUF 1.91 billion, representing a 22% increase in annual comparison, and exceeding the target by 6%. The revenue deriving from the main activity of CCP was HUF 1.713 billion in 2019, this amount is almost 5% more than the target and 25% more than the amount reported in the previous year. The other revenues reached HUF 196.9 million last year, exceeding the target by 23% and representing a 0.9% increase compared to the amount achieved in 2018.
As Mrs Babett Kecskésné Pavlics, the CEO of KELER CCP said: “The company had a historic year, as the revenue increase deriving from the services reached a record level.” The highest revenue achieved since the existence of KELER CCP is partly due to the fact that by exploiting the favourable economic environment, the company increased its energy market fees – considered as the most risky and capital-intensive clearing market – already in December 2018, although the fees were reduced by 20% last year in August. “Since we managed to keep the vast majority of clients in spite of the new fees adjusted to the capital costs, with HUF 700 million, the energy market beat the record of fee income” said Mrs Babett Kecskésné Pavlics.
Continuation in accordance with the strategy
This year, the target of both member companies of the KELER Group remains to achieve the objectives set out in the medium-term strategy as soon as possible, i.e. to play a predominant role in the region in the fields of the depository and clearing services.
The negative economic impacts and uncertainty associated with the coronavirus epidemic pose a challenge to both KELER and KELER CCP. However, the two member companies have hitherto faced the difficulties successfully, and remain committed to make their best endeavours to provide the services to the existing Hungarian and international partners, and the company group will keep on looking for possibilities for expanding internationally.