MOEX reports a record fee income on the Derivatives and Equities markets in Q3

moex volumes report

Moscow Exchange (MOEX) has today announced its financial results for Q3 2019, reporting a record fee income on the Derivatives and Equities Markets. The exchange has also released a strong performance of Depository and Settlement Services (8% growth in total fee income).

Highlights include:

  • Fee and commission income was up 8.1% YoY to RUB 6,399.6 mln;
  • Net interest income (NII) increased by 8.7% compared to same period last year;
  • Net Income rose by 6.8% YoY to RUB 5,453.4 mln.

During the Q3 period, MOEX became a clearing member on the Shanghai Gold Exchange (SGE).

The Board approved a new dividend policy, which raised the payout floor from 55% to 60% of net profit.

Yury Denisov, CEO of Moscow Exchange, said:

In the third quarter, the Equities and Derivatives Markets delivered record fee and commission income on the back of increased client activity, including considerable growth from retail investors. This trend is the result of both a strong market backdrop and expansion of the line of products and services on offer to market participants and their clients.

We continue to improve our infrastructure to make it even more convenient for clients and with the aim of stimulating liquidity growth. Last month we changed the trading mode for the most liquid corporate bonds and some sovereign Eurobonds to T+1 settlement. Already in the first weeks since this change we have seen double-digit growth in trading volumes in these instruments.

The strong performance of the Russian equity market has continued in the fourth quarter: the MOEX Russia Index is hitting new record highs and this gives us optimism as we think about the Company’s results for this year. We are also pleased to note that our new corporate strategy, which focuses on growth and expansion of our business, has been well received by all stakeholders. The management team is intently focused on successful implementation of the strategy.

Maxim Lapin, CFO of Moscow Exchange, commented:

Fee and commission (F&C) income increased thanks to contributions from the Equities and Derivatives Markets as well as Depository & Settlement Services. The FX Market posted a strong performance quarter-on-quarter despite the year-on-year decline. Money Market performance was muted as we observed a trough in corresponding open interest. The Fixed Income Market took a pause, with the pace of primary issuance slowing after a strong 1H2019. Altogether, 9M 2019 F&C growth stands at 10.0%.

Net interest income (NII) improved 8.7% year-on-year on the back of realized investment portfolio revaluation. The resulting topline operating income added 8.6% year-on-year, coming in at RUB 10.66 bln. Recurring OPEX expanded by 7.6% year-on-year. OPEX growth remains right at the lower end of the guidance range as of 9M2019 – which is 8.0%. As a result, net profit grew 6.8% year-on-year to RUB 5.45 bln.

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