Moscow Exchange sees net income increase by 38% in 2014

Moscow Exchange (MOEX), the biggest marketplace for currencies and derivatives in Russia and the Commonwealth of Independent States, this morning posted its financial and operating metrics for 2014, with profits and revenues staging a pronounced rise in annual terms.

Before taking a look at the overall financial metrics, we should mention the achievements of the Forex trading segment, as this is our traditional point of focus. MOEX saw fee and commission income from the Forex market jump 41.3% in annual terms to RUB 3.41 billion (USD 54.84 million).

Trading volumes on the FX market amounted to RUB 228.5 trillion, up 46.5% year on year. Thanks to elevated volatility, spot trading volumes rose 35.8% against levels from 2013, while swap trading volumes increased 52.7% in annual terms on the back of high demand for liquidity-management products.

Below you can see the financial highlights for 2014:

  • Operating income increased 23.5% YoY to RUB 30.39 billion;
  • EBITDA increased 31.9% YoY to RUB 21.62 billion; the EBITDA margin was 71.1% vs. 66.6% in 2013;
  • Operating expenses grew by 5.2% YoY to RUB 10.37 billion;
  • Net income increased 38.1% YoY to RUB 15.99 billion;
  • Basic earnings per share increased to RUB 7.21 from RUB 5.23;
  • Proposed dividend of RUB 3.87 per share, representing 55% of 2014 net income.

Commenting on the successful performance, Evgeny Fetisov, MOEX’s chief financial officer said:

“I am pleased to report that in 2014 we achieved outstanding financial results and successfully completed several important initiatives. The successful SPO of our shares helped to further diversify the company’s high quality investor base and substantially increased the free float.

“Earnings per share increased 37.9% YoY to RUB 7.21 supported by strict cost control and solid operating income performance. Strong double-digit growth in fees and commissions was recorded on the FX Market (+41.3% YoY), Money Market (+27.8% YoY), Equities Market (+25.8% YoY), as well as Depository and Settlement Services (+37.3% YoY). We also maintained good cost discipline: operating expenses increased just 5.2% YoY, approximately half the inflation rate.

“We optimised the structure of MOEX Group through the sale of non-core assets, finalized mergers of several entities within the Group and increased our stake in NAMEX, the commodities exchange focused on grain trading, to a controlling interest.”


Photo credit: MOEX

The official announcement by MOEX on its full-year financial metrics can be read here.

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