TASE Publishes Its 2017 Financial Statements

TASE Net Profit in 2017, Excluding Costs of Granting 6% of TASE’s Shares to Employees (as Part of Implementing the TASE Ownership Restructuring Law), Amounted to NIS 13.1 Million – NIS 11 Million More Than in 2016 (a 520% Increase) Including the One-Time Expense Totaling NIS 27.4 million for the Grant of Shares to Employees, the Loss for 2017 Amounted to NIS 14.3 million.

Revenues in 2017 Totaled NIS 242 Million – the Same as in 2016

TASE’s Expenses were 4% Less Than in 2016 (Excluding One-Time Expense for the Grant of Shares to Employees); G&A Expenses Down by 44% 

The General Meeting of the Tel-Aviv Stock Exchange (TASE) approved today (April 17, 2018) the 2017 financial statements.

TASE’s net profit in 2017 amounted to NIS 13.1 million before one-time expense (not involving cash flows) totaling NIS 27.4 million for the grant of shares to employees, within the framework of implementing the TASE Ownership Restructuring Law that was approved in 2017. In this context, TASE granted shares to its employees, for no consideration, as a reward for their past services and the full amount of the expense was, accordingly, recognized in 2017. The loss for 2017 amounted to NIS 14.3 million.

It should be noted that the last time TASE posted a loss was in 2013. In that year, the loss of NIS 45.5 million was due to a provision for the impairment of TASE’s new building, which was then in the final stages of its construction. As of December 31, 2017, the pre-tax balance of the aforesaid impairment provision is NIS 86 million. Every year, TASE’s management re-examines the value of its operations and reviews the need to reverse the impairment provision. TASE’s management expects that, with the continued improvement in its business operations and in its financial results, the aforementioned impairment provision is likely to be reversed.

TASE’s revenues in 2017 totaled NIS 242.4 million, the same as in the previous year. During 2017, TASE introduced several measures as part of the strategic plan to diversify future revenue sources, including: the establishment of the nominee company that commenced operations with clients at the beginning of 2018, Colocation services, a central lending pool, trade in foreign ETFs and other new products, which will generate revenues in 2018 and thereafter.

TASE’s expenses, excluding the one-time expenses for the grant of shares to employees, amounted to NIS 226.2 million – 4% less than the NIS 235.7 million scope of expenses in 2016. The drop in operating expenses stems mainly from a decrease in the general and administrative expenses that totaled NIS 7.8 million in the reporting year, compared to NIS 14.1 million in 2016. This, on top of the efficiency measures taken by TASE’s management, has resulted in major reductions, including, in the scope of external consultation services for TASE.

2017 saw an increase in the number of share offerings, a record number of new issuances and higher trading turnovers in equities.

Public offerings in 2017 raised NIS 8.4 billion – 84% more than in the previous year. There were 92 issuances, which included a steep rise the number of new issuances (IPOs) – within the framework of which NIS 3 billion was raised by 17 new companies. This compares to just 14 new companies that made issuances in the entire period from 2012 to 2016 (see table below).

The total raised through bond issuances by TASE companies amounted to NIS 72 billion in 2017 (not including structured bonds), with this coming on top of the NIS 67 billion raised in the previous year.
The trading turnover in the equities market (on- and off-exchange, including ETNs on the equities market) averaged NIS 1.4 billion a day –11% higher than the average daily turnover in the previous year. The main factor contributing to the increase in trading turnovers on the equities market was the reform in the TASE indices. Immediately prior to the reform (on February 9, 2017), the TASE trading turnovers record – which had stood for six and a half years – was shattered when turnover hit a massive NIS 12 billion.

In contrast, the trading turnovers of ETN’s continued to decline on the equities and bonds markets, following the drop in 2016. As revealed by Ministry of Finance data, the decreases are due to institutional investors constituting a greater share of ETN holders, with this being matched by a parallel decline in the public’s holdings. The decrease in the public’s share was accompanied, as mentioned, by the public making massive sales of ETNs. The daily trading turnover in ETNs on the equities indices (local and international) fell in 2017 and amounted to NIS 301 million (on- and off-exchange) – 13% lower than the turnover in the previous year. In 2017, trading turnovers in monthly options on the TA-35 Index continued the downward trend that began in 2016, this being in contrast to the activity in the underlying asset. The turnover in monthly options on the TA-35 Index amounted to some 100 thousand units a day in 2017 – 17% lower than the turnover in the previous year.

At the end of 2017, the securities listed on TASE comprised: 457 corporate shares with a total market value of some NIS 800 billion; 31 government bonds with a total value of NIS 492 billion; 665 corporate bonds with a total value of NIS 372 billion; and 695 ETNs.

For the full financial statements on TASE' web site:

Condensed financial statements for the years 2015 - 2017

(*) In July 2015, a change was made in the commissions model, whereby – inter alia – the minimum commission on TASE trading and clearing revenues was cancelled and the management fees commission included in revenues from Clearing House services was increased.

Raisings on the TASE equities market in the years 2015-2017

Daily trading turnovers on the equities market (in NIS millions)