Moscow Exchange Releases it Q3-2018 Financial Results, Reports Flat Net Profit Growth

MOEXMoscow Exchange (MOEX) on Wednesday announced its third quarter financial results for FY 2018 in accordance with International Financial Reporting Standards (IFRS). During the quarter, MOEX has recorded higher fees and commission income from Money Market and Depository and Settlement services, while all other sector reported positive year on year F&C growth.

In the third quarter, total operating income for the exchange stood at RUB 9,822.6 million, which is 1.7 per cent higher from RUB 9,657.2 million in Q3, 2017. The fee and commission income reported a growth of 8.4 per cent to RUB 5,917.6 mln on the back of strong performance in all market segments including Derivatives, Equity and Money Markets. The exchange managed to keep the operating expenses under check and reported a slight increase of 6.1 per cent compared to Q3-2017. EBITDA was flat during the quarter at RUB 7,138 million, reporting a slight increase of 0.6 per cent.

The Adjusted Net Profit during the quarter was RUB 7,135.3 million, compared to RUB 7,096.1 million in the same period a year before.

Commenting on the result Chief Executive Officer of Moscow Exchange, Alexander Afanasiev said:

Alexander Afanasiev, CEO of Moscow Exchange
Alexander Afanasiev, CEO of Moscow Exchange

“In the third quarter of 2018, fee and commission income increased across all markets, and the fees generated by the Money Market and Depository and Settlement Services set record highs. The Unified Collateral Pool project remains on track: client volumes are increasing and it’s clear that there is demand in the market for the new service. Increased trading by retail investors made an important contribution to volume growth and continues to represent a significant opportunity for our business. Finally, we are pleased to have concluded a strategic partnership agreement with KASE, which will bring our markets closer together.”

Maxim Lapin, Chief Financial Officer of Moscow Exchange, also added:

“Moscow Exchange’s fee and commission income continued to advance during the third quarter, largely on the back of higher fees from the Money Market, Derivatives Market and FX Market. We observed some stabilization in net interest income on a quarter-on-quarter basis. NII excluding the effect of the investment portfolio revaluation reached RUB 3.90 bln in Q3 2018. Operating expenses remained under control and grew by 6.1%, below the full-year guidance. Net of non-cash changes to amortization schedules, operating expenses added just 3.5%, in line with inflation. As a result, EBITDA was up 0.6% to RUB 7.14 bln.”

Some of the major highlight during the quarter are:

  • In the first nine months of 2018, total RUB 1.7 trillion has gone in bond placements with   153 bond issues were made by 86 corporates during the period.
  • During the third quarter, corporates with direct access to the FX and Money Markets crossed 100 and Unified Collateral Pool continued to gain popularity with 36 market participants using the service at the end of the period.
  • MOEX signed a strategic partnership agreement with Kazakhstan Stock Exchange, in which MOEX will provide IT solutions for trading & clearing and acquire up to 20 per cent stake in Kazakhstan Stock Exchange.