Moscow Exchange Reports Slight Rise in Net Profit in Q2 2021

Moscow Exchange (MOEX) has released its operating metrics for the second quarter of 2021, revealing a slight rise in the net profit.

Record fee income from the Money Market as well as strong performance by Depository & Settlement Services and the Derivatives Market helped MOEX sustain solid double-digit growth of Fee and commission (F&C)  income and approach all-time high quarterly fee income level.

As shown in Fazzaco's previous reports​, Moscow Exchange​ has seen an increase in trading volumes​ for three consecutive months.

Key Financial Metrics for Q2 2021:

• ​F&C income grew by 24.2% to RUB 9.9 bln.

• Operating income was up 9.7%. F&C income accounted for more than 75% of operating income.

• Net profit grew by 2.1% to RUB 7.0 bln.

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Commenting on the results, Max Lapin, Chief Financial Officer of Moscow Exchange, said, “Double-digit fee and commission growth this quarter accelerated to 24.2%, outpacing our strategic target despite the elevated base of last year and subsiding levels of volatility. Market activity was strong, with the Money and Derivatives Markets contributing to higher fee and commission growth, while Equities performed on par. Velocity in equities during the quarter was in line with 3Q 2020, driven by sustained levels of activity among retail investors”.

“Following the consolidation of Inguru, which adds 2-3 p.p. to OPEX growth on a full-year basis, and the launch of Marketplace-related marketing, we are updating our guidance for FY21 OPEX growth to 13%-20% YoY,” added Max. “The breakdown is as follows: 5-6 p.p. relate to core business expenses growth, 6-8 p.p. is attributable to development projects including the Marketplace and 2-6 p.p. are stemming from Inguru consolidation together with the Marketplace marketing support. We keep our FY21 CAPEX guidance intact”.