The Moscow Exchange (MOEX) today announced its financial results for the year ended 31 December 2014. According to the report higher volumes on the FX, equities and money markets, as well as increased interest income and fees from depository and settlement services resulted in strong growth in revenue and net income for the Russian venue.
Fees and commission income from the FX market increased 41.3% YoY to RUB 3.41 billion for MOEX. Trading volumes on the FX market totalled RUB 228.5 trillion, up 46.5% YoY. Supported by elevated volatility, spot trading volumes rose 35.8% YoY, while swap trading volumes increased 52.7% YoY on the back of high demand for liquidity-management products.
Also during 2014, the Russian exchange substantially expanded its product offering: corporate Eurobond listings, repo instruments for corporate Eurobonds, two new currency pairs (GBP/RUB and HKD/RUB), futures on Yandex and MOEX, a volatility index and Eurobonds futures, derivatives and FX positions, currency risk netting, and intraday clearing on the equities and bonds market.
Key financial highlights reported by MOEX for 2014: Operating income increased 23.5% YoY to RUB 30.39 billion; EBITDA increased 31.9% YoY to RUB 21.62 billion; The EBITDA margin was 71.1% vs. 66.6% in 2013; Operating expenses grew by 5.2% YoY to RUB 10.37 billion; Net income increased 38.1% YoY to RUB 15.99 billion; Basic earnings per share increased to RUB 7.21 from RUB 5.23; A proposed dividend of RUB 3.87 per share, representing 55% of 2014 net income.
Mr. Alexander Afanasiev, chief executive officer of Moscow Exchange, commented: “2014 was another very successful year for Moscow Exchange despite the challenging environment. The main factors that drove the growth in volumes were the major market infrastructure reforms we implemented over the past several years, our strong relationships with clients, as well as the proven safety of Moscow Exchange’s systems and risk management, which attracted more volumes in a volatile market.
“We are cautiously optimistic about 2015 as we see year-to-date volume growth across most of our markets. Our focus in the year ahead will be on continuing to grow revenue from our traditional business lines, diversifying the product offering, developing clearing and post-trading functions and closely monitoring costs.”
Mr. Evgeny Fetisov, chief financial officer of the Moscow Exchange, said: “I am pleased to report that in 2014 we achieved outstanding financial results and successfully completed several important initiatives. The successful SPO of our shares helped to further diversify the company’s high quality investor base and substantially increased the free float.
“Earnings per share increased 37.9% YoY to RUB 7.21 supported by strict cost control and solid operating income performance. Strong double-digit growth in fees and commissions was recorded on the FX Market (+41.3% YoY), Money Market (+27.8% YoY), Equities Market (+25.8% YoY), as well as Depository and Settlement Services (+37.3% YoY). We also maintained good cost discipline: operating expenses increased just 5.2% YoY, approximately half the inflation rate.”