MOEX Sees Solid Q1 Earnings Due to Growth in Fees and Commission Income

Moscow Exchange (MOEX) today reported its financial results for Q1 2016, reflecting a strong start to the year, fueled by a substantial 32.2 percent growth of fee and commission income in the first quarter.

The results highlight the strength of MOEX’s diversified product line and follow its record yearly results for 2015 revealing significant growth in the number of individual traders on its FX Market.

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Commenting on the results, Alexander Afanasiev, Chief Executive Officer of Moscow Exchange, said: "We are pleased to announce substantial 32.2% growth of fee and commission income in the first quarter. Our priorities for the second half of the year remain expanding the range of products and services we offer to improve trading and clearing efficiency, attracting more Russian retail clients and continuing our work to promote the Russian market and Russian issuers among international investors."

Operating Income

Operating income declined 1.1 percent YoY and 8.1 percent QoQ to RUB 11.7 billion. Fee and commission income increased 32.2% YoY to RUB 5.0 billion, with a slight decline of 2.5 percent QoQ.

EBITDA

EBITDA for Q1 2016 amounted to RUB 9.2 billion, down 2.6 percent YoY and down 8.5 percent QoQ. The EBITDA margin for Q1 2016 was 78.1 percent compared with 79.3 percent in Q1 2015.

Net Profit

Net profit for Q1 2016 amounted to RUB 7.0 billion, down 3.1 percent YoY and down 9 percent QoQ.

Other Highlights

Fee and commission income from the FX Market increased 48.1 percent YoY to RUB 1.3 billion. Trading volumes on the FX Market totalled RUB 89.0 trillion, up 59.5 percent YoY. Spot trading volumes rose 69.1 percent YoY, while swap trading volumes increased 53.8 percent YoY on the back of continued demand for Liquidity -management products.

Fee and commission income from the Derivatives Market grew by 108.3 percent YoY to RUB 513.3 million. Trading volumes in contract terms increased 78.1 percent YoY and amounted to 556.5 million contracts totalling RUB 35.5 trillion, largely driven by growth of futures on commodities and FX, and options.

Evgeny Fetisov, Chief Financial Officer of Moscow Exchange, also commented: “We made a strong start to the year. Fee and commission income increased across almost all our products, with the highest growth rates on the Derivatives Market, Money Market and FX Market. Lower interest rates led to contraction of interest income as expected, while on the other hand overall client activity increased. Cost discipline allowed us to deliver an impressive EBITDA margin of 78.1%."