Tel Aviv Stock Exchange Net income in 2020 grew by 110% to NIS 36.9 million

The corona crisis had a positive effect on the Tel Aviv Stock Exchange, which published its financial statements for the fourth quarter of 2020. The crisis significantly increased trading volumes, hence the stock market's revenues, and so the tidal wave contributed to it. The stock exchange reported that it would To distribute a dividend of NIS 18.4 million at the beginning of April - about 0.18 agorot per ordinary share.
The reports show that the stock exchange's revenues for 2020 increased by 17% and amounted to NIS 304 million, compared with NIS 260 million in 2019. Net income in 2020 grew by 110% to NIS 36.9 million. Compared to a profit of NIS 17.6 million in 2019. Since a significant portion of the TASE's expenses are fixed, any increase in revenue is reflected almost entirely in profit.
Adjusted profit (profit excluding expenses for share-based payments) amounted to NIS 38.2 million in 2020, compared with NIS 21.4 million in 2019 - an increase of 78%. The stock market explains this jump as a result of an increase in revenue from services, mostly from revenue from trading and clearing fees. For example, the average daily trading volume in shares in 2020 was NIS 1.86 billion, compared with NIS 1.3 billion in 2019.
The tide in the initial public offerings also contributed to the stock market in registration fees and commissions. In 2020, 27 initial public offerings were made in which NIS 4.6 billion was raised - the highest number since 2007. The volume of raising in the stock market amounted to NIS 17 billion, compared with NIS 13.3 billion in 2019. There has also been a sharp rise in the bond market, which has recorded the highest volume of raising in the last 20 years by the Israeli government, due to the need to fund the government assistance program to deal with the corona crisis.
During 2020, expenses also increased, among other things against the background of benefits to TASE employees agreed within the framework of the collective agreement signed in July 2020, which ended the ongoing labor dispute and regulated the distribution of annual grants to company employees for 2019-2017. The TASE also noted that there was an increase in marketing expenses, computer and communication costs, as well as as a result of the transition to financing expenses and an increase in tax expenses.
According to the reports, the five highest paid employees on the stock exchange together received about NIS 10.5 million in 2020: the CEO of the stock exchange, Itai Ben Zeev, received a total salary of NIS 4.8 million, and the remaining four, who serve as vice presidents, received a salary of NIS 1.5-1.4 million each The cost of wages for all employees, without the five highest wage earners, in 2020 amounted to an average of NIS 48,000 per month for about 250 employees.
Ben-Ze'ev said in the context of the publication of the reports that "2020 was a significant year for the stock market with an increase in all parameters - both in the level of joining new Israeli companies, especially in the field of technology; Both in the range of services and new products of the stock exchange; And both in the level of interest of the general public and the increase in trading volumes, as reflected in the good results and the bottom line. "
He added that "three years of implementing a strategic plan, in which we acted on three principles: reflecting the Israeli economy, increasing tradability and liquidity, and expanding the basket of services while improving the stock exchange's infrastructure - allowed us continuous activity throughout the year and support extensive growth in market activity." About 43% in the average daily trading volume in shares and entry of many new investors.We are pleased that the momentum in activity continues in the first quarter of 2021, with 30 new issues since the beginning of the year, about two-thirds of them high-tech companies and R&D partnerships, and many more expected Join in the coming months. "