Brazil's Cetip meets estimates on expenses; BM&FBovespa misses


By Guillermo Parra-Bernal and Natalia Gómez

SAO PAULO, Nov 7 (Reuters) - Third-quarter earnings atBrazilian exchange and clearinghouse companies came in mixed onThursday, as expense controls failed to offset the impact ofdeclines in trading volumes and weak revenue from registrationof securities and other financial services.

BM&FBovespa SA, Brazil's sole listed bourse,missed analysts' estimates for third-quarter profit, as volumein equities and derivatives trading suffered from feebleactivity between July and September. For Cetip SA MercadosOrganizados, lower expenses helped profit come inline with analysts' estimates even as revenue expansionfaltered.

As widely expected in a Thomson Reuters poll, earnings inthe so-called market structure industry reflected variousreductions in activity related to market participants that areuncertain about macroeconomic conditions in Brazil and abroad.Management of both companies will discuss results with investorsin a series of conference calls scheduled for Friday.

Net income at Cetip, Latin America's largest securitiesclearinghouse, totaled 93.46 million reais ($41 million) in thethird quarter, largely in line with a profit estimate of 94million reais in a Thomson Reuters poll. Profit rose 2.5 percentand 48.2 percent on a quarter-on-quarter and year-on-year basis,respectively.

BM&FBovespa earned 281.9 million reais in net income, belowthe 291 million reais net income estimate in the same poll.Profit tumbled 19.7 percent from the prior quarter but rose 1.9percent on an annual basis.

Overall, slower economic growth this year has weighed onequity and derivatives trading volumes, fixed-incomeregistration and auto lien sales. The market momentum may extendinto this quarter, as a policy by private-sector banks to limitexposure to certain lending segments and rein in trading-relatedrisks may continue.

"This process of financial deleveraging across the bankingsystem is definitely having an impact on revenue growth,"Francisco Carlos Gomes, chief financial officer at Cetip, saidin a telephone phone interview after the results.

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