KELER Group also registered growth in 2020

KELER Group providing central securities depository and clearing services registered growth even amidst difficult economic environment triggered by the coronavirus pandemic. KELER Central Depository Ltd.’s revenue reached HUF 7.2 billion, exceeding that of 2019 by 8.3%. In 2020 the central counterparty activity of the other Group member company, KELER CCP Ltd., generated the revenue of HUF 1.78 billion, outperforming the value reached in the previous year by 4.1%. Both member companies carried out important developments and are planning to expand this year as well.


Although the coronavirus pandemic profoundly transformed the economic environment, the two member companies of the MNB-owned KELER Group closed 2020, after the growth achieved in the previous years, with further revenue increase.

Growth with revenue over HUF 7 billion
Last year therevenue of KELER Ltd., the operator of the only depository of the Hungarian capital market, totalled HUF 7.2 billion,which means an 8.3% rise compared to the previous year.

The fact that last year the GDP-proportionate state debt rose to 80.4% as a result of the pandemic also contributed to the revenue increase; consequently, the HUF-based government securities portfolio increased, resulting in the growth of KELER Ltd.’s revenues. “Revenue from the securities trading services increased as well, by over HUF 500 million. In 2020 KELER Ltd.’s fees and commissions from the depository and credit institution activities exceeded, for the first time since the foundation of the company, the amount of HUF 6 billion. 

However, the company’s interest result decreased compared to that of the previous year partly owing to the low market yields and partly due to the maturity of the securities purchased at a higher yield level in the previous years” – said Zsolt Demkó-Szekeres, Chief Executive Officer of KELER Ltd. Overall, KELER Ltd. closed 2020 with HUF 1.3 billion profit before taxes.

Significant increase in profit
The other member company of the KELER Group, KELER CCP Ltd. providing guarantee and clearing house services reached the revenue of HUF 1.78 billion from its main activity; compared to the previous year it means a 4.1% annual increase thanks also to the increased volume of transactions in the serviced markets. Besides the organic growth in the business activity, in 2020 a significant financial result of HUF 217 million also contributed to profitability, enabling KELER CCP Ltd. to close the year with HUF 516 million profit after taxes.

KELER CCP Ltd.’s last-year results were highly influenced by the development of the securities market environment. “Last spring BUX, the standard index of the Budapest Stock Exchange setting higher and higher records in recent years, lost a third of its value within a short period due to the negative effects of the coronavirus pandemic, which was followed by active trading on the investors’ side. The strong market reactions and the enhanced activity are clearly reflected in the fact that KELER CCP Ltd.’s transactions settled in the capital markets in March 2020 doubled compared to the average daily transactions in the last 4-5 years – commented Mrs Babett Kecskésné Pavlics, the Chief Executive Officer of KELER CCP Ltd. on the company’s results.

Developments in focus

Both member companies of KELER Group carried out substantial developments last year, in compliance with the previously developed strategy.

On 2 December 2020 KELER Ltd. became a numbering agency accredited by GLEIF (Global Legal Entity Identifier Foundation); as a result, it may start to offer its LEI (Legal Entity Identifier) code issuing and management service to the legal entities registered in Hungary.  Thanks to the developments performed in 2020, the code issuing service enables KELER Ltd., as of 1 February 2021, to issue LEI codes used for the international identification of legal entities and consisting of 20 alphanumeric characters, through its own web application. KELER Ltd.’s new and existing clients may also enjoy the benefits of the new LEI code issuing services which may be used for reduced fees.

Additionally, KELER Ltd. carried out significant IT developments in order to ensure its compliance with the EU rules on central depositories, otherwise known as CSDR regulations. Zsolt Demkó-Szekeres explained: “The company reached its long-established objective last December: it was granted its operating license pursuant to the CSDR. Thus, it can offer its services supporting the secure operation of the securities market as a depository operating under unified European regulations.”

“Several substantial developments also took place at KELER CCP Ltd. last year” – said Mrs Babett Kecskésné Pavlics. An outstanding achievement is that on 1 December 2020 KELER CCP Ltd. successfully launched the so-called new settlement banking model; consequently, the financial settlement of every participant in the gas and energy markets is performed on new commercial cash accounts.

KELER Group member companies expect moderate growth in the period to come. Besides ensuring a higher level of automation and improvement in the service quality, they aim to operate in a more efficient, secure and competitive manner, while complying with the EU standards.