Moscow Exchange showed expectedly high results for 2023

The Moscow Exchange showed expectedly strong results for 2023. Against the background of an increase in the influx of clients, volumes and account balances, the net profit of the site reached 61 billion rubles, 1.7 times higher than the result of 2022. The growth in commission income was largely determined by the new structure of trade tariffs. In 2024, market participants expect faster growth in interest income as interest rates remain high in the debt market. However, the exchange will have to withstand tough competition from banks that are still maintaining high rates on deposits.

According to reporting Moscow Exchange according to IFRS at the end of 2023, net commission income of the trading platform increased by 39%, to a record 52.4 billion rubles. At the same time, interest income increased by 14.4%, to 52.21 billion rubles, also reaching a new maximum. As a result, the exchange’s net profit reached 60.8 billion rubles, which is 68% higher than in 2022.

Market participants believe that commission income has increased due to an increase in trading turnover and the platform’s tariff policy.

For example, income on the stock market more than doubled (to RUB 6.94 billion), while trading volumes in the segment increased by only 31%. In the derivatives market, income increased by almost 80%, but turnover by only 7%.

As Alexander Sidorov, senior equity analyst at Aigenis Investment Company, explains, effective commissions on the stock market and the derivatives market have increased due to the revision of tariff models. Interest income increased, including due to the rise in the key rate in the second half of the year (up to 16%), as well as the placement of funds in the accounts of financial organizations (up to 1.9 trillion rubles) and financial assets of the central counterparty (CCP, up to 6.38 trillion rubles).

At the same time, the operating expenses of the exchange increased by only 20%, to 28.7 billion rubles. Additional reserves were accrued for the payment of bonuses and the implementation of a long-term incentive program after the revision of the remuneration system, as well as marketing expenses associated with the Financial Services platform.

This year, market participants expect continued growth in interest income. Leading analyst at Digital Broker Daniil Bolotskikh believes that the exchange will receive commission income in the amount of 57.9 billion rubles. (an increase of 10%), while interest income will reach 75 billion rubles. (an increase of more than 40%), and net profit will update the record to 69 billion rubles. Net profit will grow not only due to a further increase in the investor base and the entry of new issuers into the primary market, but also due to increased business efficiency and returns from digital services, says Capital Lab partner Evgeniy Shatov. At the same time, Alexander Sidorov believes that the exchange’s expenses in 2024 will increase by only 10%, mainly due to inflation.

Among the risks for the exchange’s performance, experts cite the introduction of sanctions against NCC.

This could affect the ability of the exchange’s trading platform to conduct exchange trading in instruments in the currencies of other countries, explains Finam Financial Group analyst Igor Dodonov. According to Sergei Shemyakin, head of Go Invest’s portfolio solutions department, in 2023 the exchange was preparing for potential restrictions and conducting stress tests to ensure uninterrupted trading in any scenario. However, BCS World of Investments stock market expert Anna Kokoreva believes that the likelihood of this is low.

Investors reacted positively to the exchange’s reporting, as well as to the absence of sanctions in relation to NCC. Shares of the trading platform at the end of trading increased by 2.96% and exceeded the value of a week ago. At the same time, the MOEX index added 2.26%.

At the same time, since the end of last year, the competition between the exchange and banks, whose deposit rates have increased significantly, has been intensifying. According to the Central Bank, the average maximum rate on deposits of the largest banks is now around 14.9% per annum. An investor, notes Anna Kokoreva, is faced with a choice: put money on deposit or leave it in a brokerage account.

Ksenia Kulikova