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Brazil's B3 profit falls, as trading volumes dim and costs rise

Published 08/11/2022, 06:27 PM
Updated 08/11/2022, 07:40 PM
© Reuters. FILE PHOTO: Currency exchange rate and recent fluctuations of market indices are seen on an electronic board at the floor of Brazil's B3 Stock Exchange in Sao Paulo, Brazil October 28, 2021. REUTERS/Amanda Perobelli

SAO PAULO (Reuters) -Brazilian stock exchange operator B3 SA Brasil Bolsa Balcao on Thursday reported an 8.5% decline in second-quarter net profit, as higher interest rates pulled more money out of equities, leading to falling trading volumes.

B3's net profit came in at 1.09 billion reais ($211.29 million), while the recurring net profit adjusted for tax benefits was 1.34 billion reais.

The bourse operator reported net revenue of 2.4 billion reais, down 7.1% from the previous year, while its expenses grew 12.4% in the quarter, to 842.5 million reais.

B3 said that the period "was marked by continuing concerns about the global macroeconomic scenario, with the world's main economies increasing interest rates to contain escalating inflation".

The daily average trading volume in the exchange fell 13.1% from the previous year to 28.8 billion reais.

© Reuters. FILE PHOTO: Currency exchange rate and recent fluctuations of market indices are seen on an electronic board at the floor of Brazil's B3 Stock Exchange in Sao Paulo, Brazil October 28, 2021. REUTERS/Amanda Perobelli

The firm also raised its forecast for 2022 gross debt leverage ratio to 1.9 times EBITDA, from 1.6 times previously, as higher interest affect its cost of debt.

($1 = 5.1587 reais)

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