NSD Reports 57.1% Net Profit Growth for 1Q 2012 According to RAS

19 April 2012
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MOSCOW - National Settlement Depository (NSD), Russia's only settlement depository servicing the full range of debt and equity securities of Russian issuers, announces its operating results for 1Q 2012.

NSD’s customers’ cash accounts turnover and its securities turnover (the market value of securities transferred in inventory operations) increased to RUB58.697 trillion and RUB27.404 trillion accordingly. It is 21.8% and 56.6% more than in 1Q 2011 (RUB48.176 trillion and RUB17.499 trillion respectively).

Eddie Astanin, Chairman of the NSD's Executive Board, said: "NSD demonstrates the high rates of growth of its operating indicators. We will keep this growth rate in future. This year we will be focusing not only on traditional services but also on implementation of the new products and technologies, forming the added value for the market and increasing its competitive advantage.

NSD's revenues for 1Q 2012 according to Russian Accounting Standards (RAS) reached RUB2.8 billion, this is twice as many compared with the same period of 2011 (RUB1.399 billion for 1Q 2011). The company's 1Q 2012 expenditures stand at RUB1.837 billion; this is 134% more than for the comparable period of 2011 (RUB785.799 million).

The company's net profit for 1Q 2012 57.1% grew against 1Q 2011, reaching RUB963.049 million (RUB612.948 million).

NSD's total equity calculated on the basis of RAS increased by 16.9% in 1Q 2012 and amounted to RUB6.325 billion as of 31 March 2012 (RUB5.41 million as of 1 January 2012 excluding events occurring after the balance sheet date).

Cash settlements

Cash settlements on MICEX Group's markets at the market closing prices

In 1Q 2012 the aggregate turnover of trading accounts for provision of settlements between participants in MICEX Group's on-exchange markets amounted to RUB36.81 trillion, including:

  • on stock exchange market: RUB21.49 trillion (30.1% growth against 1Q 2011);
  • on SPCEX SC stock exchange market: RUB1 billion;
  • on governmental securities market: RUB4.993 trillion (decreased by 1.7% against 1Q 2011);
  • on derivatives market : RUB461 billion (increased by 15% against 1Q 2011)

Operations held via the Bank of Russia's settlement network

In 1Q 2012 the turnover of NSD's correspondent account with the Bank of Russia doubled against 1Q 2011, reaching RUB93.428 trillion.

The number of payments conducted via NSD's correspondent account with the Bank of Russia for 1Q 2012 increased by 1.2% in comparison with 1Q 2011 (142,345 payments).

In 1Q 2012 the turnover of NSD's correspondent account with the Bank of Russia using its RTGS system, Banking Electronic Speedy Payments (BESP) system rose by 172% against 1Q 2011 and reached RUB72.181 trillion.

The number of executed payments conducted via NSD's correspondent account with the Bank of Russia using the BESP system grew more than two fold against 1Q 2011, standing at 27,213 payments.

A significant increase in the number of operations conducted using the BESP is mainly caused by technologic improvement of NSD's software and enhancement of the settlement services in the course of conducting of payments through the system.

Securities safekeeping and servicing

The value of securities in depository accounts opened with NSD increased 4.5% in comparison with the same indicator as of 31 December 2011 (RUB8.139 trillion); it reached RUB8.502 trillion as of 31 March 2012. The market value of Russian issuers' shares on deposit with NSD as of 31 March 2012 grew by 7.9% (RUB1.717 trillion). Increase in aggregate nominal value of corporate and regional bonds on deposit with NSD was 4.8% and reached RUB3.488 trillion; nominal value of Eurobonds on deposit with NSD dropped by 15.1% to RUB174.117 billion, and UIT units’ value reduced by 7.1% reaching RUB103.591 billion.

The total number of securities on deposit with NSD grew by 29.7% from 2.562 trillion as of 31 December 2011 to 3.324 trillion as of 31 March 2012. The number of inventory operations for 1Q 2012 decreased by 7.9% against the comparable period of the previous year; it reached 635,848 operations. 

The number of issuers which securities were serviced by NSD amounted to 2,141; this is 3.9% more against 31 December, 2011. The total number of securities issues serviced by NSD reached 4,379; it makes 4.4% growth against the data as of 31 December, 2011. At the same time the number of foreign issuers' Eurobonds serviced by NSD increased by 11.1%, reaching 582. The number of foreign issuers' shares serviced by NSD grew from 179 to 181 issues as of 31 March, 2012. Number of depository accounts since the beginning of 2012 amounted to 1,930 accounts, decreasing by 6.3%.

The value of DVP transactions held by the participants in OTC market using NSD's correspondent accounts opened with Clearstream and Euroclear in 1Q 2012 reached RUB24.961 billion; this is almost twice as many compared with the same indicator for 1Q 2011 (RUB12,563 billion). In 1Q 2012 the number of DVP transactions conducted increased by 34,2% against 1Q 2011 and amounted to 298 transactions; 7 of them were represented by operations with shares, 290 of them were conducted with bonds. 287 transactions were held with bonds in US dollars.

The value of NSD's internal DVP transactions held in 1Q 2012 280% grew against 1Q 2011 from RUB6.656 billion to RUB25.291 billion. The number of NSD's internal DVP transactions conducted in 1Q 2012 rose 76.5% compared with the same indicator a year earlier (from 34 to 60 transactions).

In 1Q 2012 the value of external FOP transactions held by the participants in the OTC market was RUB520.811 billion; this is by 47.7% less against the comparable indicator for 1Q 2011 (RUB995.928 billion). The number of external FOP transactions conducted in 1Q 2012 dropped by 27.8%, amounting to 26,238 transactions.

The value of NSD's internal FOP transactions held by the participants in the OTC market grew to RUB1.031 trillion for the reporting period; this is 96.4% more than for 1Q 2011 (RUB524.955 billion). The number of NSD's internal FOP transactions rose 39.3% against 1Q 2011 (from 11,852 to 16,508 transactions).

NSD remains the leading Russian paying agent on corporate and regional bonds. As of 1 April 2012, its share in the market of paying agent's services was 41.59% on basis of all number of corporate and regional securities issues in circulation, and 44.92% based on the number of issuers of corporate and regional securities in circulation. For 1Q 2012 NSD as a paying agent accepted for servicing 18 bond issues of 14 issuers. As of 1 April 2012, the total number of bond issues serviced by NSD as a paying agent amounted to 346 issues of 159 issuers.

In 1Q 2012, NSD made 177 payments as income on registered securities (dividends, UITs income, revenues from repurchase of shares) or RUB1.485 billion (this is by 160% more than the same indicator for 1Q 2011 - RUB578 million) and RUB41.973 billion as income on corporate and regional bonds (this is by 93.3% less than for the same period of 2011 – 158 payments for RUB628 billion). A decrease in the amount of payments held by NSD as a paying agent is to be take place during redemption of issues which were registered or to which the identification numbers were assigned prior to 1 January 2012 (due to a changed procedure of payment on equity securities with mandatory centralized custody which were registered or to which the identification numbers were assigned prior to 1 January 2012, and on the federal state equity securities with mandatory centralized custody regardless of their registration date). In compliance to the above mentioned changed procedure, NSD as a depository providing services of mandatory centralized custody, made 27 payments as income on bonds for the total sum of RUB132.856 billion.

The sum of Eurobonds' coupon and maturity payments for 1Q 2012 amounted to:

  • Ruble payments: RUB505 million
  • Euro payments: Ђ1.495 million
  • US dollar payments: US$248 million
  • British pound payments: Ј272.000

Being Russia's National numbering agency, NSD assigns ISIN and CFI codes to Russian financial instruments, submits information about assigned codes to the ANNA international database and updates the international database with regard to Russian ISIN and CFI codes. For 1Q 2012, NSD assigned international ISIN and CFI codes to 123 Russian financial instruments and withdrew ISIN codes from 82 Russian securities.

In 2008 the Federal Financial Markets Service's Provision for Foreign Financial Instruments as Securities approved by FFMS Order #07-105/pz-n of Oct. 23, 2007, came into effect. According to this document NSD, acting as a member of Association of National Numbering Agencies (ANNA), provides services related to qualification of foreign financial instruments as securities to stock market participants.

For all the time of contributing to qualification of foreign financial instruments, NSD received and processed 57,101 requests on ISIN and CFI codes of foreign financial instruments (including requests on the same instrument sent by different clients). By the end of 1Q 2012 information about 21,004 instruments was provided to the market participants; out of them 17,561 instruments conform to the FFMS qualification requirements.

Note

Value of securities held in NSD accounts is an operational indicator which does not include the market value of other assets held in issuers’ accounts. The value of shares and units of Unit Investment Trusts is based on market value, and the value of bonds is based on nominal value.

About NSD

National Settlement Depository (NSD) is the largest settlement depository in Russia, a part of the MICEX-RTS Group, servicing on-exchange and OTC transactions with all types of debt and equity securities of Russian issuers and providing settlement services to participants in financial markets of the Russian Federation.

NSD provides storage of global certificates and depository accounting for 99% of corporate bond issues, sub-federal and municipal bond issues. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, more than 99% of transactions conducted in the corporate and regional bond markets, the majority of transactions with equities and also services UIT units and securities of foreign issuers.

In accordance with agreements concluded between NSD and the Bank of Russia, NSD acts as a settlement center for the organized securities market.

NSD is Russia's national numbering agency and the substitute numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.


For further information about NSD: http://www.nsd.ru/ , or NSD Public Affairs Division: +7 495 232 0910,

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