Market News


BURSA DE VALORI BUCURESTI SA - BVB

2020 Q3 Report

Release Date: 11/12/2020 8:30:03 AM

IRIS Code: 3E923

Key events

 

Ø  The promotion of the Romanian capital market to the secondary emerging market status becomes effective on September 20, 2020. Banca Transilvania and Nuclearelectrica become part of the main FTSE indices for emerging markets while Teraplast joins the FTSE emerging markets small-cap universe.

Ø  The value traded in September 2020 exceeds EUR 580 mn, with an average of over EUR 25 mn per day, one of the largest monthly volumes traded on BVB, especially as a result of the effective promotion of the Romanian capital market to emerging market

Ø  The total value of transactions on all markets, including offers, for the first 9 months of 2020, + 56%, from RON 8.12 bn to RON 12.69 bn, especially due to the increase in the value of secondary public offerings traded on the main stock market but also due to the listing of government securities for retail investors in the fixed income market

Ø  The total value of transactions on the regulated stock market, excluding offers, increased by 13% compared to the similar period of 2019 (9M 2020: RON 8.46 bn vs. 9M 2019: RON 7.46 bn), an increase positively influenced by the deals transactions in the amount of RON 790 mn made in September 2020. Transactions with shares, excluding initial and secondary public offerings, represent 67% of the total traded values in the first 9 months of 2020, respectively 92% in the similar period of 2019.

Ø  The value of transactions with structured products (certificates) increased more than 3 times, compared to 9M 2019, from RON 133 mn to RON 591 mn

Ø  The project of the central counterparty, CCP.RO, enters the implementation phase following the signing of the consulting contract for technical support and consultancy with CC&G, signed in July 2020. The management team aims to complete the authorization process and effectively start clearing operations in 2022

Ø  Bucharest Stock Exchanges initiates the first ESG project on the Romanian capital market. Sustainalytics, one of the leaders in the ESG segment, will provide ESG research and ratings for the companies listed on our main market. The next steps include supporting the local issuers for implementing the best practices in terms of ESG reporting. Bucharest Stock Exchange also aims to put the basis for ESG weighted indices and a green bonds segment in 2021

Ø  Three additional companies – OMV Petrom, Electrica and Romcarbon - enter the issuer market making program with the aim of improving daily liquidity and potentially qualifying for inclusion in the FTSE emerging markets indices at the next rebalancing

 

Evolution of financial performance, 9M2020-consolidated results BVB Group

 

The consolidated operating revenues of the BVB Group in 9M 2020 were RON 31.63 mn (9M 2019: RON 26.45 mn), + 20%, + RON 5.18 mn, growth influenced by all business segments of the Group

Ø  Revenues from the trading segment (BVB) increased by 27%, + RON 4.11 mn (from RON 14.99 mn to RON 19.10 mn) as a result of the increase of the values traded on the main stock market, both regular and offers transactions.

Ø  Revenues related to the post-trading segment (DC) increased by 7% (from RON 7.42 mn to RON 7.92 mn) due to the increase of revenues from maintaining the quality of custodian in the DC system, but also of the increase of revenues from settlement, influenced by the increase of the values traded at BVB. The revenues related to the register segment (DC) also increased by 10%, from RON 3.50 mn to RON 3.86 mn, mainly due to the registration one-off revenues.

 

9M individual results*:

Ø  Trading revenues - BVB individual*, increased by 30%, + RON 5.07 mn (from RON 15.24 mn to RON 20.31 mn) mainly due to the advance of trading revenues on the main stock market, both regular and offers transactions.

Ø  DC individual* revenues, increased by 8%, + RON 0.55 mn in 9M 2020 compared to 9M 2019, from RON 11.00 mn to RON 11.85 mn, as a result of increase in custody and settlement revenues and registry segment revenues

 

Consolidated operating expenses - 9M2020, + 9%, respectively RON 2.01 mn, from RON 22.43 mn to RON 24.44 mn mainly due to the advance of personnel expenses by RON 1,28 mn and expenses with services provided by third parties by RON 0.68 mn

9M individual results*:

Ø  Operating expenses, BVB individual*, 9M 2020, remained constant around RON 12.00 mn, the reduction of other operating expenses covered the advance of expenses with services provided by third parties.

Ø  Operating expenses, DC individual*, 9M 2020, + 10%, from RON 10.04 mn to RON 11.00 mn, influenced mainly by the increase of personnel expenses and other operating expenses, together generating an advance of RON 0,86 mn RON.

 

Consolidated operating profit of the BVB Group – 9M 2020, + 79%, from RON 4.02 mn to RON 7.19 mn as a result of the advance of operating revenues by 20% while the advance of operational expenses was 9%

Ø  Operating profit, BVB individual* - 9M 2020, + 156%, from RON 3.24 mn to RON 8.31 mn, with an operating margin of 41%. This includes intra-group transactions (for trading segment values, excluding intra-group transactions - see Note 6 Segment reporting)

Ø  Operating profit, DC individual* - 9M 2020, -11%, from RON 0.95 mn to RON 0.85 mn, with an operating margin of 7%. This includes intra-group transactions (for post-trade segment and register values, excluding intra-group transactions - see Note 6 Segment reporting)

 

Consolidated net financial income – 9M 2020, -43%, decrease from RON 3.93 mn to RON 2.22 mn, mainly due to the reduction of the value of unrealized exchange rate differences from the revaluation of financial instruments in currency, which generated a gain of RON 0.04 lei vs. RON 1.28 mn in 9M 2019, but also due to the registration of one-off revenues from the sale of government securities in Q3 2019, revenues that were not recorded in 2020

Ø  Net financial income, BVB individual* 9M 2020, -60% or RON 2.79 mn, from RON 4.63 mn to RON 1.84 mn influenced both by the reduction of interest income and unrealized exchange rate differences foreign exchange, the effect of the decrease in the value of investments in government securities and deposits as a result of the investment of 10 million Euros in the share capital of CCP.RO (for trading segment values, excluding intra-group transactions - see Note 6 Segment reporting)

Ø  Net financial income, DC individual* - 9M 2020, -57% or RON 0.38 mn, from RON 0.67 mn to RON 0.28 mn (for post-trade segment and register values, excluding intra-group transactions - see Note 6 Segment reporting)

 

Consolidated net profit of the BVB Group – 9M 2020, +18%, from RON 6.69 mn to RON 7.91 mn, 82% being generated by the Group's trading segment

Ø  Net profit, BVB individual* - 9M 2020, + 29%, from RON 6.82 mn to RON 8.76 mn, with a net margin of 43%. This includes intra-group transactions (for trading segment values, excluding intra-group transactions - see Note 6 Segment reporting)

Ø  Net profit, DC individual* 9M 2020, -28%, from RON 1.41 mn to RON 1.02 mn, with a net margin of 9%. This includes intra-group transactions (for post-trade segment and register values, excluding intra-group transactions - see Note 6 Segment reporting)

 

* including intra-group transactions

Bucharest Stock Exchange (BVB) informs that the Financial Report as of September 30, 2020 shall be available for shareholders, investors and general public as of November 12, 2020, 8:30AM local time. The printed version shall be available at BVB’s headquarters, located in Bucharest, 34-36 Carol I Blvd, 14th floor, district 2, and the online version shall be available on our website www.bvb.ro, in the “Investor relations/Financial figures/Financial statements” section, at  http://www.bvb.ro/InvestorRelations/FinancialFigures/FinancialReports.

The conference call for presenting the financial results as of September 30, 2020 shall take place on November 12, 2020, 17:00 local time. For joining the conference call, please contact us at ir@bvb.ro.

 

 



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