Moscow Exchange (MOEX) generated RUB 1.47 billion in fees and commission income from its foreign exchange business in the first quarter of 2023, according to the financial results published on Monday. The FX market figures came in 2.2 percent lower than the previous quarter and 0.6 percent higher than Q1 2022.

FX Demand on MOEX

Though the income from the FX market remained almost flat, trading volume dropped significantly over a year. Trading volume with FX droppped 41.1 percent to RUB 60.9 trillion year-over-year, while it jumped 20.2 percent from the previous quarter. Spot FX volumes decreased 32.3 percent, while swap volume decreased 44.9 percent from the previous year's first quarter.

"The effective fee dynamics is explained by the new tariff structure implemented in Aug '22," MOEX stated. "Also, the trading volume mix slightly improved towards a more profitable spot segment."

A Profitable Quarter

Additionally, the overall fee and commission income of the exchange operator declined 6.5 percent in the three months, between January and March, to RUB 9.96 billion. Its net interest income (NII) increased 21 percent, while core NII is at 20.4 percent. The operating income also jumped 6.9 percent.

The adjusted net profit of the Russian exchange operator also reached RUB 14.3 billion, increasing 17.4 percent year-over-year. Its pre-tax profits jumped 78.1 percent to RUB 17.8 billion, taking the net profit to RUB 14.3 billion, which is 77 percent higher year-over-year and 28.1 percent higher quarter-over-quarter.

The company ended the quarter with basic earnings per share of 76.9 percent to RUB 6.35.

Furthermore, MOEX highlighted that its operational expense for the quarter decreased 17.9 percent, mainly due to the reduction in advertising and marketing costs. With the conclusion of the Finuslugi promo campaign, its advertising and marketing costs declined by 84.5 percent. However, it is now expecting a growth of 10 to 14 percent in its operational expenditure in the financial year 2023.