Solvency ratio of the TOP 10 brokerage companies

ranking 20/07/2021

Information agency Credinform represents a ranking of the largest Russian brokerage companies engaged in securities financing transactions. Companies with the largest volume of annual revenue (TOP 10 and TOP 100) operating in financial markets with stock values and commodity contracts on behalf of others markets with were selected for the ranking, according to the data from the Statistical Register and the Federal Tax Service for the latest available periods (2018 - 2020). They were ranked by the return on the authorized capital (Table 1). The selection and analysis were based on the data of the Information and Analytical system Globas.

Solvency ratio (х) is the ratio of equity to total assets. It shows the dependence of the company on external loans. The reccommended value is >0,5.

The ratio below the minimum value is idicative of a strong dependence on external sources of funds. If the market conditions deteriorate, this can lead to a liquidity crisis and an unstable financial position of the company.

For the most complete and objective view of the financial condition of the enterprise, it is necessary to pay attention to the complex of indicators and financial ratios of the company.

Table 1. Net profit, revenue, solvency ratio and solvency index Globas of the brokerage companies engaged in securities financing transactions (TOP 10)
Name, INN, region, activity type Revenue, million RUB Net profit (loss), million RUB Solvency ratio (x), >0,5 Solvency index Globas
2019 2020 2019 2020 2019 2020
1 2 3 4 5 6 7 8
JSC ROST.S
INN 0814089015 Moscow
emission activity
up465 up852 down2 140 down-1 634 up1,00 down0,80 293 Medium
LLC TORGOVAYA KOMPANIYA
INN 7715655456 Moscow
securities management
up566 up625 up13 up19 up0,53 up0,62 214 Strong
JSC ABR MANAGEMENT
INN 7842467053 Saint Petersburg
securities management
up879 up886 down-39 up6 down0,57 down0,53 248 Strong
Branch of DEGA RETAIL HOLDING LIMITED
INN 9909460763 Moscow
securities management
up1 874 down1 009 down-718 up978 down0,13 up0,50 306 Adequate
LLC BN-BROKER
INN 7733862470 Moscow
activities of exchange intermediaries and stock brokers performing commodity futures and options transactions in exchange trading
up848 up2 314 down-13 up47 up0,88 down0,48 323 Adequate
LLC CITI BROKER
INN 7736524278 Moscow
activities of exchange intermediaries and stock brokers performing commodity futures and options transactions in exchange trading
up73 up770 up5 up7 up0,50 down0,46 258 Medium
LLC ITI COMMODITIES
INN 7703434420 Moscow
activities of exchange intermediaries and stock brokers performing commodity futures and options transactions in exchange trading
up1 032 up1 445 up12 down2 up0,01 up0,01 312 Adequate
LLC KTZH FINANS
INN 7704391000 Moscow
emission activity
up1 525 up1 482 up43 down-6 up0,01 up0,01 333 Adequate
JSC AVTOBAN-FINANS
INN 7708813750 Moscow
securities management
up1 075 up1 261 up15 up46 up0,00 up0,01 264 Medium
LLC SVYAZINVESTNEFTEKHIM-FINANS
INN 1655380771 Republic of Tatarstan
emission activity
up1 798 up1 803 up2 down2 up0,00 up0,00 317 Adequate
Average value for TOP 10 up1 013 up1 244 down146 down-53 up0,36 down0,34  
Average value for TOP 100 down208 down169 down36 down1 down0,29 up0,46
Average industry value up55 down29 up-11 down-14 up0,49 down0,17

вверх growth of indicator to the previous period, вниз fall of indicator to the previous period

In 2020, the average values of the solvency ratio of the TOP 10 and TOP 100 companies were below the recommended one. Four companies of TOP 10 reduced their figures in 2020. In 2019, the fall was recorded for two companies.

In 2020, nine companies gained revenue and six legal entities gained net profit.

The average revenue of TOP 10 climbed 22%, and a 19% decrease was recorded in TOP 100. There was a 47% increase in the industry average indicator.

There was an almost 4 and 36 times fall in profit of TOP 10 and TOP 100 respectively. The industry average profit fell 27%.

Over the past five years, the industry average values of the solvency ratio were negative over two periods. The increase was recorded over two periods. The highest value was recorded in 2016 and the lowest one was in 2017 (Picture 1).

Picture 1. Change in the industry average values of the solvency ratio of the brokerage companies engaged in securities financing transactions in 2016 - 2020 Picture 1. Change in the industry average values of the solvency ratio of the brokerage companies engaged in securities financing transactions in 2016 - 2020