Moscow Exchange Records Operating Income of RUB 20.9Bn for Q2 2023

Moscow Exchange (MOEX), the largest exchange group in Russia, today announces its financial results based on summary financial statements prepared in accordance with International Financial Reporting Standards (IFRS) for Q2 2023.

Unless stated otherwise, all figures below refer to performance in Q2 2023 and all comparisons are with the corresponding period last year.

Financial Overview for Q2 2023

• Operating income totaled RUB 20.90 billion for the three months, increasing 5.0% compared to RUB 19.91 billion in Q2 2022 and decreasing 10.0% compared to RUB 23.21 billion in Q1 2023. Among them, fee and commission income contributed the most to the yearly growth, which rose by 48.1% from RUB 8.06 billion in Q2 2022 to RUB 11.93 billion. Net interest and other finance income (NII) accounted for RUB 8.96 billion with a yearly decrease of 23.8%, while core NII (NII less realized gains or losses on investment portfolio revaluation) accounted for RUB 9.27 billion with a yearly decrease of 23.4%. Other operating income was RUB 4.8 million, decreasing 94.6% on a year-on-year basis.

• Operating expenses came in at RUB 5.91 billion for the quarter, 1.7% higher than RUB 5.81 billion in Q2 2022 and 8.9% higher than RUB 5.42 billion in Q1 2023.

• Profit before tax reached RUB 15.11 billion, jumping 46.7% compared to RUB 10.31 billion in the same period of last year while falling 15.3% compared to RUB 17.82 billion in the prior quarter.

• Net profit amounted to RUB 12.11 billion for this Q2, up 46.2% compared to RUB 8.29 billion in Q2 2022 and down 15.5% compared to RUB 14.33 billion in Q1 2023. Adjusted net profit was RUB 12.01 billion for the quarter, an increase of 6.1% on a yearly basis and a decrease of 16.0% on a quarterly basis.

• Adjusted EBITDA recorded RUB 16.2 billion in Q2 2023, increasing 6.8% compared to RUB 15.18 billion in Q2 of last year and decreasing 14.7% compared to RUB 19.02 billion in the prior quarter.

• Basic earnings per share (EPS) rose by 46.3% from RUB 3.67 in Q2 2022 to RUB 5.37, falling 15.4% compared to RUB 6.35 in Q1 2023.

Performance for Key Business Lines for Q2 2023

• The total market capitalization of the Equities Market at the end of the second quarter was RUB 49.13 trillion (USD 564.55 billion). Fee and commission income from the Equities Market surged by nearly 3.5x. Trading volumes expanded 111.4% as trading velocity accelerated. More than 2.6 million clients were active every month during the quarter.

• Fees and commissions from the Bond Market nearly tripled. Trading volumes (excluding overnight bonds) were up 173.7%.

• Money Market fee income improved by 23.2% as trading volumes added 12.2%.

• Fee income from the FX Market grew 39.8% while trading volumes were up 19.4%. Also, the trading volumes' mix slightly shifted towards a less profitable swap segment: spot volumes increased by 8.1% and swap volumes improved 26.8%.

• Derivatives Market fee income surged 2.6x, while trading volumes grew 18.1%. Volumes' mix changed towards higher value-added futures contracts based on commodities and single stocks. Index derivatives' volumes grew by 22.0%, FX derivatives' volumes decreased 10.1% and commodity derivatives' volumes surged 3.6x. Single-stock derivatives trading volumes increased by 33.0%.

• Other fee and commission income declined by 11.3%. Information sales were up 29.2%, largely due to RUB depreciation.

• The cash position at the end of Q2 2023 was RUB 116.97 billion. The company had no debt as of the end of the quarter.

• Capex for the quarter was RUB 0.92 billion, mostly spent on purchases and development of software.