The Russian market operator Moscow Exchange Group (MOEX) announced its financial results for the first quarter of 2020, reporting record fee income on the Equities and Derivatives Markets, as well as strong performance by the FX Market, helped the exchange achieve an all-time high quarterly F&C income.
The financial highlights for Q1 2020 include:
- Fee and commission income increased by 29.3% to RUB 7,909.9 million, mainly driven by the Equities, Derivatives and FX Markets.
- A growth in client balances, as well as a realized gain from revaluation of the investment portfolio, more than offset the decline in interest rates, resulting in a 2.1% growth in net interest income (NII).
- Operating expenses remained under control, decreasing by 1.6% amid the impact of the Covid-19 pandemic.
- Adjusted net profit increased by 30.9% to RUB 6,600.8 million.
Yury Denisov, CEO of Moscow Exchange, said:
It was a challenging quarter for the Exchange, as we had to ensure operational continuity amid considerably higher volatility and trading volumes, while transitioning most of our staff to work remotely as a result of the COVID-19 pandemic. To comply with quarantine requirements and out of concern for the health of our employees, 90% of our staff are currently working from home. We nevertheless report a very strong set of financial results for the quarter, driven by a substantial increase in client activity across most of our markets. We saw substantial savings in our operating budget, which enabled us to increase our charity budget and donate RUB 100 mln to various charitable organizations with programs to help medical institutions, healthcare professionals and people in need due to the pandemic.
| RUB mln |
Q1 2020 |
Q1 2019 |
YoY |
Q4 2019 |
QoQ |
| Operating income |
11,988.4 |
10,283.1 |
16.6% |
11,182.4 |
7.2% |
- Fee and commission income
|
7,909.9 |
6,117.5 |
29.3% |
7,102.5 |
11.4% |
- Net interest and other finance income (NII)
|
3,992.7 |
3,910.9 |
2.1% |
4,070.6 |
-1.9% |
| NII less realized gains on investment portfolio revaluation (core NII) |
3,290.9 |
3,910.2 |
-15.8% |
3,661.3 |
-10.1% |
|
|
85.8 |
254.7 |
-66.3% |
9.3 |
822.6% |
| Operating expenses |
3,678.2 |
3,736.9 |
-1.6% |
4,048.8 |
-9.2% |
|
|
1,794.7 |
1,755.9 |
2.2% |
1,784.4 |
0.6% |
|
|
1,169.1 |
1,204.9 |
-3.0% |
1,302.7 |
-10.3% |
- Remaining general and administrative expenses
|
714.4 |
776.1 |
-8.0% |
961.7 |
-25.7% |
| Profit before other operating expenses and tax |
8,310.2 |
6,546.2 |
26.9% |
7,133.6 |
16.5% |
| Other operating gains/(expenses) |
(871.0) |
(2,653.5) |
nm |
63.1 |
nm |
| Net profit |
5,904.0 |
3,095.5 |
90.7% |
5,749.1 |
2.7% |
| Basic earnings per share, RUB |
2.62 |
1.37 |
91.1% |
2.55 |
2.7% |
|
|
|
|
|
|
| Net Profit |
5,904.0 |
3,095.5 |
90.7% |
5,749.1 |
2.7% |
- Other operating expenses / (income)
(one-off provisions and movements in allowance for ECLs under IFRS 9) |
871.0 |
2,435.2 |
nm |
(63.1) |
nm |
- Deferred taxes related to one-off provisions and movements in IFRS 9 allowance
|
(174.2) |
(487.0) |
nm |
12.6 |
nm |
| Adjusted net profit |
6,600.8 |
5,043.7 |
30.9% |
5,698.6 |
15.8% |
|
|
|
|
|
|
| EBITDA |
8,234.9 |
4,765.5 |
72.8% |
8,136.9 |
1.2% |
- Other operating expenses / (income)
(one-off provisions and movements in IFRS 9 allowance) |
871.0 |
2,435.2 |
nm |
(63.1) |
nm |
| Adjusted EBITDA |
9,105.9 |
7,200.7 |
26.5% |
8,073.8 |
12.8% |
| Adjusted EBITDA margin |
76.0% |
70.0% |
5.9 p.p. |
72.2% |
3.8 p.p |
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