04.03.2022 09:45

Moscow Exchange announces results for the full year 2021

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%
  • Fee and commission income
41,554.0 34,268.2 21.3% 11,962.8 10,046.5 19.1%
  • Net interest and other finance income (NII)[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%
  • Other operating income
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%
  • Personnel expenses
9,881.7 8,459.3 16.8% 2,707.4 2,389.2 13.3%
  • D&A and IT maintenance
5,601.6 4,938.5 13.4% 1,525.4 1,347.8 13.2%
  • Professional services
835.5 202.7 312.2% 570.9 90.8 528.7%
  • Other general and administrative expenses
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%
  • Movements in allowance for ECLs
-627.4 0.9 nm 28.5 -321.5 nm
  • Deferred taxes related to movements in allowance for ECLs
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%
  • Other operating expenses / (income) (movements in allowance for ECLs)
-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).

Contacts:
Investor Relations: Public Relations:

Anton Terentiev
+7 495 363 3232
ir@moex.com
Lev Bystrov
+7 495 363 3232
pr@moex.com

NOTES TO EDITORS

About Moscow Exchange

Moscow Exchange Group operates Russia’s main trading platform for equities, bonds, derivative instruments, currencies, money market instruments and commodities. The Group includes the central securities depository (National Settlement Depository), and a clearing center (National Clearing Centre), performing the functions of central counterparty on the markets, which allows Moscow Exchange to offer its clients the full spectrum of trading and post-trading services. Moscow Exchange held the initial public offering of its shares on 15 February 2013 (ticker MOEX).

Disclaimers

Some of the information in these materials may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. You can identify forward looking statements by terms such as "expect", "believe", "anticipate", "estimate", "intend", "will", "could," "may" or "might" the negative of such terms or other similar expressions. The Company wishes to caution you that these statements are only predictions and that actual events or results may differ materially. The Company does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of the Company, including, among others, general economic conditions, the competitive environment, risks associated with operating in the Russian Federation, rapid technological and market change in the industries the Company operates in, as well as many other risks specifically related to the Company and its operations.

 
[1] Calculated as the sum of interest income calculated using the effective interest method, other finance income, gains/losses on FVTPL, gains/losses on FVTOCI and foreign exchange gains less losses minus interest expense.
[2] Calculated as the sum of interest income calculated using the effective interest method, other finance income, gains/losses on FVTPL and foreign exchange gains less losses less interest expense (compared to net interest and other finance income, excludes gains/losses on FVTOCI).
[3] Cash position is calculated as the sum of Cash and cash equivalents, Financial assets at fair value through profit and loss, Due from financial institutions, Financial assets at fair value though other comprehensive income, Current tax prepayments and Other financial assets less Balances of market participants, Overnight bank loans, Distributions payable to holders of securities, Margin account, Liabilities related to assets held for sale, Current tax payables and Other financial liabilities.
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