Bolsas y Mercados Argentinos (BYMA) recorded an inflation-adjusted profit of ARS 28.7 million during 2Q 2019, from ARS 917.3 million a year ago, in real terms. The effort to generate new business lines did not offset the impact from the deterioration in trading volume and assets under custody driven by the domestic recession.
Inflation adjusted operating revenue fell 10.1% y/y. In nominal (historical) terms, trading volume is still affected, growing 4% y/y in equities and 44% y/y in fixed income, despite the recovery during the month of June. Assets under custody grew in pesos by 6% y/y, and dropped 1% t/t drop due to the peso appreciation.
The increase in CEDEARs trading stood out thanks to the Market Makers program. The equity average daily trading volume (ADTV) made up 18% of this class of securities.
BYMA was able to reach a 10% market share in peso-dollar future contracts trading, thanks to the aggressive pricing of its products, and expects to reach between 25% and 30% of market share during the next 12 months.
The company kept its goal of reaching an operating margin of 50% by 2020, despite having suffered a deterioration in this metric so far this year (41% YTD), from 2018’s 42%
Net profit during the quarter was also benefited by the recognition of deferred tax assets (IIGG) from previous quarters.
Rating: Market Performer.