| SAO PAULO
SAO PAULO Nov 7 Third-quarter earnings at
Brazilian exchange and clearinghouse companies came in mixed on
Thursday, as expense controls failed to offset the impact of
declines in trading volumes and weak revenue from registration
of securities and other financial services.
BM&FBovespa SA, Brazil's sole listed bourse,
missed analysts' estimates for third-quarter profit, as volume
in equities and derivatives trading suffered from feeble
activity between July and September. For Cetip SA Mercados
Organizados, lower expenses helped profit come in
line with analysts' estimates even as revenue expansion
As widely expected in a Thomson Reuters poll, earnings in
the so-called market structure industry reflected various
reductions in activity related to market participants that are
uncertain about macroeconomic conditions in Brazil and abroad.
Management of both companies will discuss results with investors
in a series of conference calls scheduled for Friday.
Net income at Cetip, Latin America's largest securities
clearinghouse, totaled 93.46 million reais ($41 million) in the
third quarter, largely in line with a profit estimate of 94
million reais in a Thomson Reuters poll. Profit rose 2.5 percent
and 48.2 percent on a quarter-on-quarter and year-on-year basis,
BM&FBovespa earned 281.9 million reais in net income, below
the 291 million reais net income estimate in the same poll.
Profit tumbled 19.7 percent from the prior quarter but rose 1.9
percent on an annual basis.
Overall, slower economic growth this year has weighed on
equity and derivatives trading volumes, fixed-income
registration and auto lien sales. The market momentum may extend
into this quarter, as a policy by private-sector banks to limit
exposure to certain lending segments and rein in trading-related
risks may continue.
"This process of financial deleveraging across the banking
system is definitely having an impact on revenue growth,"
Francisco Carlos Gomes, chief financial officer at Cetip, said
in a telephone phone interview after the results.