3rd QUARTER 2022 RESULTS
Mexico City, October 18th, 2022. - Bolsa Mexicana de Valores, S.A.B. de C.V., ("the Bolsa or the BMV") (BMV: BOLSA A) today announced its results for the third quarter of 2022, highlighting:
3Q2022 VS. 3Q2021
- Revenues reached 979 million pesos, 52 million or 6% higher compared to 3Q21 explained by:
- higher trading in derivatives and OTC in Chile and ii) new clients in information services.
- Expenses increased by 4% mainly explained by new software licences in technology and cybersecurity, technological and fiscal consultancies, as well as renovations to BMV's building.
- Operating income and net income increased 7% and 9%, respectively.
- EBITDA was registered at 571 million pesos with an EBITDA margin of 58%.
FINANCIAL HIGHLIGHTS (1)
3Q22 | 3Q21 | Var % | 9M | 9M | Var % | |
2022 | 2021 | |||||
Revenue | 979 | 926 | 6% | 3,126 | 2,875 | 9% |
Expenses | 462 | 445 | 4% | 1,358 | 1,340 | 1% |
Operating Income | 517 | 482 | 7% | 1,768 | 1,535 | 15% |
EBITDA | 571 | 541 | 6% | 1,935 | 1,707 | 13% |
EBITDA Margin | 58% | 58% | -5bps | 62% | 59% | 252bps |
Net Income | 400 | 368 | 9% | 1,283 | 1,099 | 17% |
CAPEX | 18 | 13 | 41% | 54 | 29 | 87% |
OPERATIONAL HIGHLIGHTS
3Q22 | 3Q21 | Var % | 9M 2022 | 9M 2021 | Var % | ||
ADTV -Equity(1)(2) | 15,906 | 15,359 | 4% | 18,811 | 17,349 | 8% | |
Futures - Volume (3) | 35,458 | 32,709 | 8% | 36,023 | 36,957 | -3% | |
Swaps Notional Value (1) | 104,623 | 112,457 | -7% | 337,636 | 365,076 | -8% | |
Margin Deposits (1) | 37,020 | 30,217 | 23% | 33,369 | 34,399 | -3% | |
(1) Million pesos | (2) | Average Daily Traded Value | (3) Daily Average |
During the third quarter of 2022, BMV's revenues increased by 52 million pesos compared to the same quarter of 2021 due to higher transactional revenues (derivatives and OTC) and new information services clients. Expenses increased 17 million pesos or 4%, explained by higher technology and consulting expenses, as well as building renovations. EBITDA margin was 58% for the quarter and 62% for the year. Net Income was 400 million pesos, up 9% compared with the third quarter of 2021. Earnings per share increased 10% in the 3Q22.
bmvinvestors@grupobmv.com.mx
For more information: Luis René Ramón, Investor Relations +52 (55) 5342-9027
REVENUES
During the third quarter of 2022 the exchange rate, USDMXN, reached a minimum and maximum of 19.80 and 20.94 pesos per U.S. dollar, respectively, and for the quarter the exchange rate closed at 20.31. Moreover, INEGI published the inflation rate estimate for 2021 at 8.7% and the Central Bank (Banco de México) set the reference interest rate at 9.25%. In the U.S., the Federal Reserve increased the interest rate to a range of 3-3.25%. In these conditions, BMV's revenues for the third quarter of 2022 were 6% higher than on 3Q21.
Quarterly Revenues (1)
Revenues up to 3Q22(2)
2022 vs. 2021
2021
2022
1150 | |||||
983 | 965 | 997 | 926 | 979 | 954 |
2017-2022
CAGR(2) +6.2%
2,959 2,875
2,632 2,663
2,314
3,126
1Q | 2Q | 3Q | 4Q | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
(1) | Million pesos | (2) Compound Annual Growth Rate |
Revenue Detail (1)
3Q - 2022 vs 2021 | 9M - 2022 vs 2021 | |||
Revenue | Var % | Revenue | Var % | |
Cash Equities | -210 | 0% | 20,901 | 5% |
Cash equities trading- BMV | -368 | 0% | 14,963 | 6% |
Cash equities clearing- CCV | 158 | 0% | 5,938 | 4% |
Derivatives | 8,177 | 17% | 17,294 | 12% |
MexDer | 2,178 | 10% | 15,261 | 24% |
Asigna | 5,999 | 25% | 2,033 | 2% |
OTC (SIF ICAP) | 14,636 | 9% | 72,751 | 15% |
Capital Formation | -1,305 | -1% | -4,117 | -1% |
Listing fees- BMV | 66 | 0% | 2,698 | 8% |
Maintenance Fee- BMV | -1,371 | -1% | -6,816 | -2% |
Central Securities Depository | 2,791 | 1% | 69,309 | 8% |
Information Services | 23,700 | 15% | 64,887 | 14% |
Price Vendor- Valmer | 5,523 | 11% | 15,881 | 12% |
Data Sales | 18,177 | 17% | 49,006 | 15% |
Others | 4,552 | 12% | 10,528 | 10% |
Total | 52,340 | 6% | 251,553 | 9% |
(1) Million pesos | ||||
2 |
Cash Equities
Cash Equities revenue, which mainly comprises Domestic and Global Market activities, was 122 million pesos, in line with the third quarter 2021.
Trading revenues were 74 million, a similar figure to 3Q21. The average daily trading value (ADTV) for the third quarter of 2022 was 15,906 million pesos, which represents an increment of 4% compared to the third quarter of the previous year. The difference between the growth rate in ADTV and revenue is due to the cancellation of services of three brokerage houses: UBS, Evercore and Deutsche.
It is important to mention that regulatory changes regarding the best execution rule or the allocation of trades was implemented in August of this year. Due to these changes, BMV Group decreased its market share to 87% in the third quarter of 2022 (92% in the local market and 83% in the global market), from 93% in the same period of the previous year.
In the year-to-dateresults, trading revenues were up 15 million or 6% to 252 million pesos. During the first nine months of 2022, the ADTV was 18,811 million pesos, up 8% compared to the same months of 2021. The BMV's market share in the 9M21 was 90%: 95% in the local market and 85% in the global market.
Stock market operating highlights in BMV- Equities
3Q22 | 3Q21 | Var % | 9M | 9M | Var % | |
2022 | 2021 | |||||
Total Market | ||||||
Daily average value traded (1) | 15,906 | 15,359 | 4% | 18,811 | 17,349 | 8% |
Daily average volume (2) | 206,276 | 208,351 | -1% | 247,337 | 253,005 | -2% |
Local Market | ||||||
Daily average value traded (1) | 7,453 | 7,371 | 1% | 9,060 | 8,191 | 11% |
Daily average volume (2) | 195,807 | 198,847 | -2% | 235,523 | 239,979 | -2% |
Global Market (SIC) | ||||||
Daily average value traded (1) | 8,453 | 7,988 | 6% | 9,752 | 9,158 | 6% |
Daily average volume (2) | 10,469 | 9,504 | 10% | 11,814 | 13,025 | -9% |
- Million pesos
- Thousand shares
During the third quarter, cash equity clearing (CCV) were 48 million pesos, in line with 3Q21. The ADTV of the total Mexican cash equities market was 18,325 million pesos, 10% higher than 9M21. However, there was a greater number of cross trades carried out compared to the same period last year.
Up-to-September, CCV presented higher revenues by 6 million pesos or 4% to 160 million compared with the same period in 2021. The ADTV of the total Mexican cash equities market during the first nine months of 2022 was 20,965 million pesos, 11% higher than 9M21. Similarly, in the accumulated months of 2022 there was a greater number of cross trades compared to the same period of the previous year.
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Derivatives
Derivatives trading (MexDer) in the third quarter presented revenues for 25 million pesos, 2 million or 10% higher versus 3Q21 because of a higher volume in dollar futures, +36%, with institutional clients and interest rate swaps where there was a fewer volume of contracts, but with a longer tenor.
In the period up to September 2022, MexDer registered 78 million pesos in revenue, 15 million or 24% higher compared to 9M21. At the end of September 2022, the open interest of dollar futures is 1.4 million contracts, three times more than the same period of the previous year.
MexDer charges a different trading fee based on the type of contract. Therefore, changes in contract operations do not necessarily reflect revenue movements.
Futures operating highlights - Futures
3Q22 | 3Q21 | Var % | 9M | 9M | Var % | |
2022 | 2021 | |||||
IPC Index | 1,330 | 1,404 | -5% | 1,381 | 1,485 | -7% |
Mini IPC | 3 | 21 | -88% | 3 | 18 | -80% |
Overnight TIIE Funding Rate | 0 | 6,566 | 6,566 | 0 | 0 | 0% |
Currencies | 33,159 | 24,466 | 36% | 33,964 | 28,617 | 19% |
Bonds | 77 | 132 | -42% | 153 | 149 | 3% |
Equities | 889 | 120 | 640% | 521 | 122 | 328% |
Subtotal | 35,458 | 32,709 | 8% | 36,023 | 36,957 | -3% |
Swaps TIIE 28 | 16,096 | 17,301 | -7% | 17,770 | 19,316 | -8% |
TOTAL | 51,553 | 50,010 | 3% | 53,793 | 56,273 | -4% |
Contracts (daily average) |
TIIE 28 Swaps
3Q22 | 3Q21 | Var % | 9M | 9M | Var % | |
2022 | 2021 | |||||
Notional Value (1) | 104,623 | 112,457 | -7% | 337,636 | 365,076 | -8% |
(1) Million pesos |
During the third quarter of 2022, derivatives clearing (Asigna) reported revenues for 30 million pesos, up 6 million or 25% compared to 3Q21. The average margin deposits were 37 billion pesos or 23% more than on the third quarter of 2021 because of higher market volatility and hence higher margin deposit, as well a larger volume in dollar futures in MexDer.
When compared with the same accumulated months of 2021, Asigna's revenues increased by 2 million to 83 million pesos mainly due to clearing and settlement of dollar futures, in part impacted by lower margin deposits (-3% vs 9M21) due to the new methodology which was released in February 2022. Asigna charges 2 basis points on the average margin deposits and different settlement fees based on the type of contract traded.
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Margin Deposits
3Q22 | 3Q21 | Var % | 9M | 9M | Var % | |
2022 | 2021 | |||||
Margin Deposits (1) | 37,020 | 30,217 | 23% | 33,369 | 34,399 | -3% |
(1) Million pesos
OTC Trading (SIF ICAP)
Revenue for SIF ICAP in 3Q22 was 171 million pesos, 15 million or 9% higher when compared with the same period in 2021. SIF ICAP Mexico's revenues were down 2 million pesos or 4% because of lower trading of foreign clients. On the other hand, the revenue in SIF ICAP Chile increased by 17 million pesos or 16% explained by higher volatility due to economic and political events.
In the period up to September 2022, SIF ICAP's revenues increased by 73 million or 15% to 558 million pesos. It is important to mention that SIF ICAP Chile recorded non-recurring revenue from VAT refunds for an amount of 37 million pesos. This item has no impact on personnel variable compensation.
Excluding non-recurring items, SIF ICAP Mexico revenue decreased 3%, while SIF ICAP Chile revenue increased 13% in the first nine months of 2022. As a result of the variable compensation plan, a better performance in this business has an impact in personnel expenses and viceversa.
Capital Formation
During the third quarter, listing revenues reached 15 million pesos, a similar figure to that of 3Q21. In the debt market, 241 short-term debt issues were placed for an amount of 46 billion pesos (-1% vs. 3Q21) and 20 long-term issues for an amount of 53 billion pesos (+71% vs 3Q21). It is relevant to note that in the third quarter of 2022, 3 ESG listings were registered, two social bonds from Compartamos Banco for
2.5 billion pesos and Fonacot for 4 billion pesos, as well as a sustainable bond from the State of Mexico for 2.9 billion. In the equity market, the follow-on of Fibra Monterrey for 3.5 billion pesos during 3Q22 stand out.
Accumulated revenues up to September 2022 were 38 million pesos, 3 million or 8% higher than those observed in the same period of 2021. The number of listings in short and long-term debt markets was -12% and +40% compared to 9M21, with an amount placed at -1% and +66%, respectively. In the equity market, Fibra Monterrey issued a follow-on for 3.5 billion pesos during 3Q22.
Regarding CKDs, Lock Capital solutions stands out with three listings for 55 million pesos.
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BMV - Bolsa Mexicana de Valores SA de CV published this content on 18 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 October 2022 22:02:03 UTC.