MOEX Reports A Strong Q1 Performance Amid A Negative FX Market Outlook
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The Moscow Exchange (MOEX) has released its financial results for the first quarter of 2023. The exchange generated RUB 1.47 billion worth of fees and commission income during the quarter. This figure was from the foreign exchange business at MOEX.
MOEX reports a solid Q1 outlook
The forex market figures that were reported by the company were a 2.2% decline from what was reported during the previous quarter. The figure was also a 0.6% increase compared to the first quarter of 2022.
The income that was generated by the company from the FX industry remained nearly the same compared to the same period last year. The trading volume was also flat. The trading volume from the FX market was down by 41.4% to RUB 60.0 trillion compared to the same period last year. However, the same metric was a 20.2% increase from the previous quarter.
The spot FX volumes also declined by 32.3%, as the swap trading volumes dropped by 44.9% compared to the first quarter of 2022. The exchange said that there was a slight improvement in the trading volumes, which propelled the company towards a more profitable space.
“The effective fee dynamics is explained by the new tariff structure implemented in Aug ’22. Also, the trading volume mix slightly improved towards a more profitable spot segment,” the statement from the MOEX exchange said.
MOEX Had A Profitable Q1
The MOEX exchange also reported a drop in the overall fee and commission income. During the first three months of 2023, the fee and commission income dropped by 6.5% to reach RUB 9.96 billion.
The net interest income (NII) that was reported by the company between January and March 2023 was a 21% increase. On the other hand, the core NII was also at 20.4%, while the operating income also reported a 6.9% increase.
The adjusted net profit reported by the company has also reported a notable increase, and it reached RUB 14.3 billion. The adjusted net profit was a 17.4% increase in the current quarter compared to the same quarter last year.
The pre-tax profits have also reported a 78.1% increase to RUB 17.8 billion. The growth has taken the net profit to RUB 14.3 billion, representing a 77% year-over-year increase. The net profit was also a 28.1% gain compared to the same quarter last year. The company also ended the first quarter with basic earnings per share of 76.9% to RUB 6.35.
MOEX has also shared its operational expense for the quarter, which declined by 17.9% compared to the same period last year. The expenses have dropped because of a drop in the advertisement and marketing costs.
The decline in advertising and marketing costs came after the end of the Finuslugi promo campaign. The end of this campaign has seen these costs dropping by 84.5%. However, the exchange is anticipating a significant growth of between 10% and 14% in operational expenditure in the current 2023 financial year.
