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Moscow Exchange (MOEX) today announces its financial results in accordance with International Financial Reporting Standards (IFRS) for the year ended 31 December 2021.
Unless stated otherwise, all figures below refer to performance in 2021 and all comparisons are with the previous year.
KEY FINANCIAL HIGHLIGHTS FOR 2021
- F&C income expanded by 21.3% to RUB 41.6 bln amid strong performance of most business lines.
- The share of operating income accounted for by F&C reached 76% in FY’21.
- Net interest income (NII) decreased 8.9% to RUB 12.9 bln and Core NII declined 6.9%.
- Operating expenses grew 22.5%, slightly above the FY’21 OPEX guidance.
- Net profit increased 11.6% to reach RUB 28.1 bln. Adjusted net profit improved 9.6%.
FINANCIAL HIGHLIGHTS
| RUB mln | FY 2021 | FY 2020 | Change | Q4 2021 | Q4 2020 | Change |
|---|---|---|---|---|---|---|
| Operating income | 54,868.9 | 48,591.0 | 12.9% | 15,439.9 | 13,266.8 | 16.4% |
|
41,554.0 | 34,268.2 | 21.3% | 11,962.8 | 10,046.5 | 19.1% |
|
12,902.2 | 14,158.7 | -8.9% | 3,332.2 | 3,168.9 | 5.2% |
| Core NII - NII less realized gains or losses on investment portfolio revaluation[2] | 12,312.5 | 13,227.8 | -6.9% | 3,357.2 | 3,193.4 | 5.1% |
|
412.7 | 164.1 | 151.5% | 144.9 | 51.4 | 181.9% |
| Operating expenses | 20,514.6 | 16,750.0 | 22.5% | 6,095.5 | 4,710.8 | 29.4% |
|
9,881.7 | 8,459.3 | 16.8% | 2,707.4 | 2,389.2 | 13.3% |
|
5,601.6 | 4,938.5 | 13.4% | 1,525.4 | 1,347.8 | 13.2% |
|
835.5 | 202.7 | 312.2% | 570.9 | 90.8 | 528.7% |
|
4,195.8 | 3,149.5 | 33.2% | 1,291.8 | 883.0 | 46.3% |
| Profit before other operating expenses and tax | 34,354.3 | 31,841.0 | 7.9% | 9,344.4 | 8,556.0 | 9.2% |
| Other operating gains/(expenses) | 627.4 | -0.9 | nm | -28.5 | 321.5 | nm |
| Net profit | 28,097.5 | 25,170.5 | 11.6% | 7,558.4 | 6,847.8 | 10.4% |
| Basic earnings per share, RUB | 12.5 | 11.2 | 11.6% | 3.4 | 3.0 | 10.2% |
| Reconciliation of adjusted metrics | ||||||
| Net profit | 28,097.5 | 25,170.5 | 11.6% | 7,558.4 | 6,847.8 | 10.4% |
|
-627.4 | 0.9 | nm | 28.5 | -321.5 | nm |
|
125.5 | -0.2 | nm | -5.7 | 64.3 | nm |
| Adjusted net profit | 27,595.6 | 25,171.2 | 9.6% | 7,581.2 | 6,590.6 | 15.0% |
| EBITDA | 38,671.2 | 35,188.9 | 9.9% | 10,282.5 | 9,756.7 | 5.4% |
|
-627.4 | 0.9 | nm | 28.5 | -321.5 | nm |
| Adjusted EBITDA | 38,043.8 | 35,189.8 | 8.1% | 10,311.0 | 9,435.2 | 9.3% |
| Adjusted EBITDA margin | 69.3% | 72.4% | -3.1 pp | 66.8% | 71.1% | -4.3 pp |
PERFORMANCE OF KEY BUSINESS LINES
| RUB mln | FY 2021 | FY 2020 | Change | Q4 2021 | Q4 2020 | Change |
|---|---|---|---|---|---|---|
| Equities Market | ||||||
| Fee and commission income, RUB mln | 5,200.8 | 4,227.4 | 23.0% | 1,559.0 | 1,178.6 | 32.3% |
| Trading volumes, RUB bln | 29,996.8 | 23,904.7 | 25.5% | 9,243.7 | 6,700.9 | 37.9% |
| Bond Market | ||||||
| Fee and commission income, RUB mln | 2,431.6 | 2,942.5 | -17.4% | 601.2 | 989.0 | -39.2% |
| Trading volumes (ex. overnight bonds), RUB bln | 18,608.7 | 26,157.0 | -28.9% | 4,629.1 | 7,899.2 | -41.4% |
| FX Market | ||||||
| Fee and commission income, RUB mln | 4,191.4 | 4,276.1 | -2.0% | 1,154.1 | 1,142.6 | 1.0% |
| Trading volumes, RUB bln | 319,784.4 | 328,945.9 | -2.8% | 81,120.9 | 88,492.6 | -8.3% |
| Money Market | ||||||
| Fee and commission income, RUB mln | 11,699.1 | 8,612.0 | 35.8% | 3,372.6 | 2,578.5 | 30.8% |
| Trading volumes, RUB bln | 474,033.5 | 426,781.5 | 11.1% | 133,046.9 | 117,135.8 | 13.6% |
| Derivatives Market | ||||||
| Fee and commission income, RUB mln | 5,198.4 | 3,939.8 | 31.9% | 1,638.5 | 1,097.0 | 49.4% |
| Trading volumes, RUB bln | 158,009.1 | 129,863.8 | 21.7% | 45,301.5 | 37,190.7 | 21.8% |
| Depository and Settlement Services | ||||||
| Fee and commission income, RUB mln | 8,396.3 | 6,524.9 | 28.7% | 2,399.9 | 2,023.5 | 18.6% |
| Average assets under custody, RUB bln | 68,691.7 | 53,802.0 | 27.7% | 73,074.8 | 58,802.7 | 24.3% |
| Other fee and commission income (IT Services, Listing and other fee income) | ||||||
| Information services, RUB mln | 1185.8 | 1110.6 | 6.8% | 306.8 | 272.6 | 12.5% |
| Sale of software and tech. services, RUB mln | 1133.6 | 956.7 | 18.5% | 302.6 | 287.8 | 5.1% |
| Listing and other services, RUB mln | 763.8 | 811.2 | -5.8% | 233.4 | 269.3 | -13.3% |
| Financial marketplace services, RUB mln | 497.0 | 5.8 | n.m. | 180.3 | 5.8 | n.m. |
| Other fee income, RUB mln | 856.2 | 861.2 | -0.6% | 214.4 | 201.8 | 6.2% |
| Net interest and other finance income | ||||||
| Net interest and other finance income, RUB mln | 12,902.2 | 14,158.7 | -8.9% | 3,332.2 | 3,168.9 | 5.2% |
| Investment portfolio, RUB bln | 872.7 | 843.9 | 3.4% | 883.3 | 924.9 | -4.5% |
- The total market capitalization of the Equities Market at the end of 2021 was RUB 62.82 trln (USD 841.85 bln). Fee and commission income from the Equities Market was up 23.0% on the back of a corresponding increase in trading volumes. A modest divergence between fee and volume dynamics is the result of the tariff structure that incentivizes higher volumes traded.
- Fee income from the Bond Market decreased 17.4% while trading volumes dropped 28.9% (excluding placements of overnight bonds). Primary market volumes (excluding placements of overnight bonds) shrank by 36.8%, largely driven by lower OFZs & OBRs placements in a growing interest rate environment. Secondary market trading volumes decreased 8.9%.
- Fee income and trading volumes from the FX Market were virtually flat, decreasing by just 2.0% and 2.8%, respectively. Spot volumes were down by 1.8%, while swap volumes declined by 3.2%. The trading volume mix slightly improved towards the more profitable spot segment. FX Market fee income now includes consolidated revenue from FX OTC platform NTPro following its acquisition in 4Q’21.
- Money Market fee income expanded by 35.8% following an increase in trading volumes of 11.1%. GCC-repo volumes gained 11.6% to reach RUB 83.8 trln. CCP repo trading volumes improved 11.3%. The effective fee dynamics are mainly explained by the expansion of the average repo terms, which improved 32%.
- The Derivatives Market F&C income added 31.9%. The trading volume growth of 21.7% was mainly driven by a 40.4% expansion of commodity derivatives volumes and a sharp rise in index derivatives trading (+30.5%). Together with a surge in single-stock derivatives trading of 79.4%, these factors explain the effective fee dynamics.
- IT Services, Listing and other fee income line was largely driven by revenue from the financial marketplace Finuslugi, which includes non-organic contribution from e-commerce platform Inguru acquired earlier in the year. Sale of software and technical services improved 18.5%, which is mainly explained by sales growth of the ASTS FIFO MFIX protocol that was launched in late 2020. Listing and other services decreased 5.8%, while sales of information services added 6.8%. The Other fee income line includes an additional fee on EUR balances of 0.2% above the ECB rate that was introduced at the beginning of 2020.
- The cash position[3] at the end of 2021 was RUB 90.66 bln. The company had no debt as of the end of the reporting period.
- Capex for the year was RUB 3.61 bln, which was spent on Finuslugi development, purchases of equipment and software as well as software development.
Moscow Exchange’s consolidated IFRS financial statements for FY 2021 are available on the Investor Relations section of the company's web site.
The FY and Q4 2021 IFRS Financial Results webcast is scheduled for 4 March 2022 at 4:00 pm (Moscow time).
