Bolsa Mexicana de Valores SAB de CV
BMV:BOLSAA
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
28.24
37.91
|
| Price Target |
|
We'll email you a reminder when the closing price reaches MXN.
Choose the stock you wish to monitor with a price alert.
This alert will be permanently deleted.
Bolsa Mexicana de Valores SAB de CV
You don't have any saved screeners yet
Greetings. Welcome to Bolsa Mexicana de Valores Fourth Quarter 2021 Earnings Conference Call. [Operator Instructions] Please note, this conference call is being recorded.
I will now turn the conference over to Ramón Güémez, CFO. Thank you. You may begin.
Thank you. Good morning and welcome to Bolsa Mexicana de Valores Fourth Quarter 2021 Earnings Conference Call.
Before proceeding, I'd like to provide a brief safe harbor statement. This presentation contains forward-looking statements and information related to Bolsa that are based on the analysis and expectations of its management as well as assumptions made and information currently available at Bolsa. Such statements reflect the current views of Bolsa related to future events and are subject to risks, uncertainties and assumptions.
Many factors could cause the current results, performance or achievements of Bolsa to be somewhat different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in the general economic, political, governmental and business conditions, both in a global scale and in the individual countries in which Bolsa does business, such as changes in monetary policies, inflation rates, in prices, in business strategy and various other factors.
Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary considerably from those described herein as anticipated, believed, estimated, expected or targeted. Bolsa does not intend and does not assume any obligation to update these forward-looking statements.
I would also like to remind participants that today's call is being recorded and a replay of this call will be available online on February 18 at Bolsa's corporate website, www.bmv.com.mx.
During this call, all figures are in Mexican pesos and compared to the fourth quarter of 2020, unless stated otherwise. This call is intended for the financial community only, and the floor will be opened at the end to address any questions you may have.
Joining us for today's call are José-Oriol Bosch, our CEO; José Manuel Allende, SVP Capital Formation Markets and Information Services; Roberto González, SVP Post Trade; Claudio Vivian, SVP Technology; Hugo Contreras, SVP Compliance and Regulations; Gabriel Rodríguez, ICAP CEO; and Alfredo Guillén, Chief Operating Officer of Cash Equities; Jose Miguel de Dios, MexDer CEO; Rosa Crespo, Director of Human Resources; Luis René Ramón, Director of Investor Relations; and myself, Ramón Güémez, CFO.
I would now like to turn the call over to our CEO, José-Oriol Bosch.
Thank you, Ramón, and good morning, everyone, and thank you for joining us for the fourth quarter 2021 earnings conference call.
In terms of today's format and similar to the previous calls, first, I will go over the results of each business line and business strategy and then open the line for Q&A. If you want to ask a question, you need to dial in the number that was provided in the press release yesterday.
So I'm going to go to Slide #3 and talk about the key financial highlights. As you can see, we have released strong results this quarter with good income growth across transactional businesses and information services as we continue to successfully execute on our strategy for growth and technology transformation. In fact, I am very glad to share with you that this quarter, we recorded the highest-ever revenue, operating income, net income and EBITDA in the company's history.
The revenue was over MXN 1 billion, up 10% compared to the fourth quarter of 2020, reflecting a stronger performance in transactional businesses and Information Services as well as nonrecurring revenue in the Central Securities Depository.
On the expense side, expenses were MXN 408 million, down 16% and well under control, mainly explained by lower variable compensation and technology costs as well as nonrecurring items last year.
Operating revenue and EBITDA increased at 36% and 33%, respectively, and net income reached MXN 498 million for the quarter. Furthermore, earnings per share were MXN 0.85, up from MXN 0.55. The EBITDA margin for the period was 67%, which contributes to the annual EBITDA margin of 61%.
On the next slide, the #4, on the annual results and key financial highlights for the last year, the revenue was in line with last year's results at MXN 3.9 billion. Our diversified business portfolio is delivering a resilient financial performance despite challenging conditions.
Expenses were MXN 1.7 billion, down 3%, maintaining our cost discipline as BMV modernized its infrastructure and transformed into a seamless technological platform.
The EBITDA was recorded at MXN 2.4 billion with an EBITDA margin of 61%, reaching a historical record high.
Net income reached MXN 1.6 billion, up 7%; and earnings per share at MXN 2.72 per share, up 8% from MXN 2.52 per share in 2020.
So all in all, a good set of numbers. We are delivering solid cash generation, controlling expenses and executing on our medium-term strategy.
On the next slide, #5, on the revenue by business line during 2021. And as mentioned before, BMV has a well-diversified business model with transactional business lines, Equities, Derivatives and OTC weighting 34% of revenue; the Central Securities Depository, 33%; Information Services, 15%; Capital Formation, 13%; and Other, that include Colocation Infrastructure and BMV School, weighting 4%.
On the next slide, #6, on the equity trading and clearing result, the cash equity trading revenue was 5% higher than the fourth quarter of 2020. The average daily traded value for fourth quarter '21 was MXN 16 billion, that was up 2%. Local market increased 4%, and BMV had 97% market share. Global markets increased 1%, and BMV had an 87% market share.
Investors in Mexico have the opinion -- the option of investing in almost 3,000 foreign securities that are listed in the SIC. BMV's expertise and continuous high level of services is showed by the market share gains in 2021. We finished the year at 92% versus 88% last year. So we are gaining back market share.
As for CCV, clearing revenues decreased MXN 8 million because of an accounting reclassification of credit notes to expenses last year and a change in the criteria for cross rates.
On the next slide, #7, on the operational highlights. The average daily traded value in 2021 was MXN 17 billion, up 6% compared to 2020. Historically, financial awareness in Mexico has been low, but the landscape is changing. We're actively working together with financial institutions and regulators to incentivize financial inclusion and increased retail participation in financial markets.
Furthermore, if you look at the December operation highlights report in BMV's website, you will see that transactions in the global market has increased 80% over year -- year-over-year, while daily volume has dropped 22%. This is evidence of higher algorithmic trading to arbitrage between the shadow-listed securities in Mexico and the main market abroad. Later during the presentation, I will talk about the BMV's market data project to reach new investors such as high-frequency traders, quants, algos and so on.
On next slide, #8, on Derivatives trading and clearing. The revenue in MexDer and Asigna was down MXN 6 million or 12%, mainly due to lower margin deposits because of lower volatility. IPC Index futures and TIIE Swaps were down 27% and 32%, respectively. The weakness in trading was offset by higher derivatives data sales and an increment in block transaction fees. Average margin deposits were MXN 31 billion in the fourth quarter, down 22%; and MXN 33.5 billion for the full year, down 16% because of favored pricing and lower volatility.
Always focused on the future, MexDer is in the authorization process to lead options and futures of shadow-listed securities in Mexico, such as Amazon, Tesla, Google, Apple or Facebook, even the success of the global market platform or fit.
On next slide, #9, on the OTC trading. SIF ICAP revenue was up MXN 21 million or 16% compared to the fourth quarter of 2020. SIF ICAP Mexico increased 7% due to new contracts signed in Mexico CO2 (sic) [ MexiCO2 ], which is our carbon platform. And SIF ICAP Chile increased MXN 18 million because of higher volatility during the presidential election and, in turn, higher volume traded.
On Slide #10, on the Capital Formation. Listing revenue reached MXN 23 million, down MXN 6 million or 22%, which is explained by the lower fee scheduled released in January 2021. It is important to mention that the currently -- that currently, we have no plans to update Capital Formation fees.
The highlights for the period include the listing of StepStone Mexico, a CKD, for MXN 554 million and Walton Street Mexico, a CERPI, for MXN 232 million. For the full year, we had 2 follow-ons, Vesta and Vasconia, 1 Fibra E, Mexico Infrastructure Partner and 7 alternative investments or CKDs or CERPIs.
Regarding the debt market, 232 short-term debt issues were placed for an amount of MXN 38 billion, 9% lower versus the fourth quarter of 2020; and 66 long-term issues for an amount of MXN 64 billion, 24% higher versus the fourth quarter of 2020. The amount placed for the full year in short-term and long-term debt was 3% and minus 3%, respectively, versus 2020. We continue witnessing a gradual recovery to pre-pandemic levels.
Maintenance fees were down MXN 18 million, minus MXN 10 million due to the new fee schedule and minus MXN 8 million because of the early debt amortization in 2021, which no longer generate maintenance fees and lower listings in 2020.
On next slide, #11, on the Central Securities Depository. Indeval's revenue was MXN 353 million, up MXN 55 million from MXN 298 million in fourth quarter 2020, explained by a nonrecurring revenue of MXN 50 million due to the prescription of liabilities in one of Indeval's euro accounts and a larger value of assets under custody, which increased 11% and 25% in the local and global market, respectively.
We have reached an all-time high with a total custody of 32 -- MXN 30.2 billion or $1.5 billion. The increment in assets under custody offset the decrease in cross-border transactions and global market services versus the fourth quarter of 2020. However, when compared quarter-over-quarter, cross-border transactions have increased 7%. It is important to mention that we expect to register nonrecurring revenue in the first quarter of 2022 for MXN 87 million due to the prescription of liabilities in one of Indeval's dollar accounts.
In Slide #12, Information Services. Information Services reported revenues of MXN 173 million in the fourth quarter of 2021, up MXN 20 million; Market Data revenue, up MXN 17 million or 18% in the quarter because of sales for individual or retail accounts, new international clients and data audit findings. Valmer revenue increased MXN 2 million or 4% due to the valuation product and financial risk management services. In LED, we continue doing trials with major global vendors and potential clients and expect to close sales in the first half of 2022.
Let me now turn to operating expenses in Slide 13. Operating expenses were well under control and down 3% versus 2020. Personnel expenses decreased by MXN 55 million due to the corporate restructuring to optimize processes and lower variable compensation. In fourth quarter, personnel expenses were MXN 186 million. But excluding the nonrecurring savings from variable compensation, it should be closer to MXN 200 million.
Technology increased MXN 10 million explained by the extension of hardware leases to maximize the useful life and new distribution channels for information services, such as the strategic alliance with Deutsche Börse. We had lower expenses due to nonrecurring credit notes for an amount of MXN 7 million.
On the depreciation, it was up 24 million explained by the acquisition and renewal of technological hardware for the Disaster Recovery Plan in Post Trade, our DRP; the equity and derivatives platform, Monet; and communication infrastructure.
Consulting fees were down MXN 23 million because of nonrecurring consulting in the fourth quarter of last year for legal advice, strengthening cybersecurity and IT.
In other, we are down MXN 13 million, also due to nonrecurring concepts last year, such as an allowance for uncollectible accounts and a reclassification of credit notes.
As Mexico and the world enters an inflationary period, we are well prepared to offset the potential headwinds and will continue with our cost-conscious culture.
On next slide, #14, on the earnings per share and track record. BMV has a consistent track record, growing the bottom line double digit at 15.4% and increasing the dividend for the past 6 years. BMV's Board of Directors agreed to recommend to our Shareholders' Assembly a dividend of MXN 1.28 billion or MXN 2.16 per share, which translates into an 80% payout. Additionally, we have bought back 4.7 million shares at a total value of MXN 196 million. Our strategy has proven to deliver resilient results, and BMV is well positioned to continue growing across the financial markets value chain.
On Slide 15, our technology transformation continues as we execute on BMV's project plan. Direct custody project continues under supervision of the financial authorities.
As for the CCP for bonds, we continue developing and implementing security and contract as well as modeling for risk management.
Regarding new projects for 2022, we have over 15 initiatives, but today, I will go over these 4. The first one, the first 2 projects are regulatory. Post-trade segregation consists of separating the technological -- the technology infrastructure for Indeval, Asigna and CCV. We are reviewing open-source licenses and performing the right hardware pricing to minimize added cost. Regarding the DRP for equities and Derivatives trading, similar to what we have done in the post trade, we need to strengthen and improve our front DRP capabilities.
The third and fourth projects on the list are growth projects. We are working with a global third-party provider to deliver agile and high-precision data to perform in-depth analysis, back testing of very large amount of data with the goal of attracting quants and algo-trading. As for the minimum variable product for securities lending, the new platform will allow our clients to negotiate transactions and keep record in an easier and user-friendly manner. In 2021, the capital expenditure were MXN 79 million, and we expect to invest between MXN 80 million and MXN 120 million in 2022.
On Slide 16, BMV's ESG strategy. The Mexican Stock Exchange, at the center of Mexican financial markets, is a vital institution that serves as a engine in the Mexican economy's transition towards sustainable development. Therefore, we are well positioned to lead ESG excellence from 2 different views: first, in how we operate internally; and second, by promoting best practices with our clients, providers and communities.
I am pleased to share with you that BMV joined the race to net zero CO2 emissions. We implemented waste management and energy efficiencies and compensated 1.7000 tons of CO2 emissions used to the company facilities and vehicles as well as energy consumptions, the Scope 1 and 2. Our certificate went to a wind farm in Wahaca, which in turn helped communities in the region. In 2022, we will start measuring waste from operations and business trips of Scope 3.
Regarding new sustainable products and services, we launched sustainable-linked bonds to issuers to finance projects focused on meeting ESG goals. In 2021, 26% of the long-term debt issued was ESG-related versus 2% 5 years ago.
Additionally, we're strengthening capacities in the market through the sustainable support program in the capital formation division to promote and help listed and private companies improve their ESG practices.
Furthermore, BMV was the only exchange included in the Dow Jones Sustainability MILA Pacific Alliance Index due to our ESG initiatives, performance and rating upgrades.
In summary, on Slide 17, BMV is delivering resilient results despite challenging environment and is well positioned across the financial markets value chain. The technological transformation is at the center of BMV's strategy for 2025. Further technological integration of BMV's IT platform, together with new products and services, will deliver increased value of our clients. Our capital expenditures were invested to run, grow and transform the business as we implement efficient, scalable and seamless platforms.
And lastly, we are thrilled to announce the latest addition to our already experienced team on the technology side: Blanca Samano as Director of Technology Solutions, Santiago Robayo as Director of Digital Products, and Marcelo Michelini as Director of Risk Management, will reaffirm GMP's commitment to grow financial markets in Mexico with a knowledgeable and dedicated team for our investors and the stakeholders.
With that, I thank you for your time. And together with my colleagues, we will gladly answering any questions you may have. Thank you very much.
[Operator Instructions] Our first question is from Ernesto Gabilondo with Bank of America.
Congrats on the results. I think good results even if excluding the one-offs in revenues and expenses.
So my first question is on expenses and your technology transformation. I remember that in this year, you will be putting in place your hybrid model and, I think, the migration to the cloud. So can you share with us how much are you expecting on those investments and if you think that the expected extraordinary income of MXN 87 million for this quarter will help to compensate part of it?
And then my second question is a little bit on expectations. How do you see revenues if you think revenue should be outpacing the investments in expenses this year? And what will be the key drivers for revenues? I think -- maybe you can share with us if you are starting to see some revenues coming from the ongoing projects from the direct custody. And what you're expecting, for example, from -- for the clearing of the M bonds.
And then just last question, in terms of operating trends and maybe some expectations for this year. I'm aware that you are no longer providing guidance. But without giving specific numbers, how do you see the EBITDA margin this year? Should we think about it to be stable or slightly above the years ago level? And the same for net income, how do you expect the net income in this year? You think Bolsa could be, again, returning to post net income growth?
Thank you, Ernesto. Let me begin backwards with number 3. Yes, we're not providing guidance, but we are expecting or we are at least aiming for good EBITDA growth and net income growth. Our goal is always to grow revenues more than we grow expenses. So that is still our -- I would say our challenge and our objective.
For growth drivers for next year, I think one thing that's going to help us is we are no longer expecting a price impact on the listing and maintenance segment. We are expecting market growth, and we are also expecting growth from our new initiatives, especially from direct custody and the new initiative we have. We were expecting to see a growth in margin deposits for Asigna. We're expecting that the way the collaterals can be handled will be simplified, and this should increase our margin deposits. So those would be the, I would say, the 4 margin -- or the 4 growth drivers that we have.
In terms of -- the first question, we've got a bad connection. I couldn't hear you very well, but if I understood correctly, you're asking about our technology costs and our -- the cost of our journey to the cloud. We don't have a final price on that. And I'm definitely not -- we're not expecting to see a direct impact over the first 2 quarters of next year or I would say, maybe even for the full year, some costs that we could specifically assign to that. It's more like a process.
I would like to ask our CIO, Claudio, to elaborate on that project.
Thank you, Ramón. Well, as you have mentioned and as the project is called, this is a journey rather than a kind of objective. So we have started with it since 2 years ago, and you have noticed that we strengthened not just the team, restructuring the IT organization in order to have the proper knowledge and the proper drive to move ahead in this initiative. We also strengthened significantly the reliability of the platform. As you have seen, we have moved to the segregation of infrastructure in order to comply, not just with the regulations but in order to have a kind of strong foundation for the future.
The journey to the cloud will take maybe 3 to 5 years in total. And this is not a kind of an objective in a specific point of time, but rather a journey that will move our -- not just infrastructure but our applications and on our platform to exploit the cloud strengths and the cloud possibilities.
So as Ramón mentioned, this is not impacting directly, I would say, the results of the organization. But we are moving ahead. We started 2 years ago, and we'll take maybe 3 to 5 years in order to get to the state-of-the-art kind of operations smoothly.
This is super helpful. Just a follow-up, again, in terms of technology. Okay, so you mentioned the cloud. What else can we expect in terms of the transformation in terms of technology and maybe potential investments there?
Sorry, I didn't catch -- I think your question is around how we are investing in cloud technology?
No. Apart from the cloud technology, what else are you doing in terms of the technology front? What other investments can we expect this year?
I think, Ernesto, we had -- our main project in that sense would be the segregation of our technology. That's a legal requirement. We continue to invest in our DRP and cybersecurity. We continue to analyze the way -- let's say, the rightsizing our infrastructure and optimizing the life of our equipment. So those would be the -- these are mainly regulatory and cost-control initiatives that we have, and those are the ones that I mentioned.
Maybe I can add. As you noticed, we just recently introduced a new head of -- that we have called digital products organization. This organization will push for having the approach of digital products focused on the market, focused on integrating the organization.
So far, we have 4 projects running in this new organization related to renewing our web pages, also renewing the [ emisoras ] issuers' platform that will introduce new concepts, but also introducing new applications for investors in order to look for mobile solutions for the market.
So this is just the beginning of this kind of new way of approaching solutions through a digital way of banking. So this, I would say, are one of the -- some of the elements that we are pushing so far.
Our next question is from Alonso Garcia with Credit Suisse.
So my question is, I mean, you mentioned that you do not expect to have an original update in the fee schedule for the capital formation segment. I was wondering if there could be an adjustment to the schedule of other business lines. In particular, I'm asking because -- I mean, with Afores having to introduce a lower fee cap starting this year, I was wondering if you were seeing maybe some pressure from these players for you to reduce the fees you charge on cash equities.
And my second question would be on the expense side. I mean given that you are seeing efficiencies in personnel expenses after the corporate restructure in June last year and that you are seeing some efficiencies also in the technology line despite additional investments, I was wondering if it's realistic to see expenses this year may be flat compared to 2021.
Sorry, Alonso, I didn't understand your second question regarding expenses.
Yes. Sorry. My question was that if it's reasonable or possible to expect maybe a flat growth in expenses in 2022 compared to 2021, especially considering that the corporate restructure that is helping some expenses only took place in June last year and that you are also seeing some efficiencies in the technology line of expenses.
Okay. Thank you. To answer the first question, whether we are expecting any change in tariffs, not on the important tariffs. Now regarding your comment as to whether we would expect any changes because of Afores demanding better pricing, we're always looking to optimize our operation. If we can find a more efficient way to operate, especially the post-trade segment that would lead to a cost reduction, we would go ahead with that. But let me say, in our main tariffs, we are not expecting to see -- we're not expecting an adjustment, neither up or down.
On your second question regarding expenses, yes, we do see expense growth for the year from different investments in different initiatives, basically, and technology, that would be our largest cost drivers. We want to continually expend -- investing in technology and different initiatives. But we are seeing growth in expenses for the year.
Our next question is from [ Edson Murguia ] with [ Sumi ] Capital.
The first one is related to -- if you could give us a little bit more color about the nonrecurring revenue about the Indeval. Just trying to understand if this was most likely to be an operational part of the business. I'm trying to figure out what would happen or what will happen with those MXN 52 million.
The second question is regarding the cryptocurrency blockchain environment that we are living. Just today, as I've seen in one of the magazines that specialize in business that Coinbase would basically offer physical settlement or Mexican pesos for Mexican users regarding to new pieces. So I was wondering as the Mexican Stock Exchange, it's doing or perhaps it's trying to get the approval for doing something in the crypto world, let's say, an ETF or the type of listed products that other exchanges in the world are offering.
Okay. Thank you. Regarding the first question on the onetime income that we had in Indeval. As we closed -- or let me say, as we entered the relationship with Deutsche Bank, there were some liabilities that expired. And as such, they're -- let me say, they're a onetime nonrecurring income. They're a consequence of the, as I said, the ending of our relationship with Deutsche. Because of the time frame of these liabilities, some expired during Q4, and another set will prescribe or expire in Q1. And so we had MXN 50 million last year, and we are expecting to have around MXN 80 million, MXN 87 million, depending really on the exchange rate for Q1.
On the -- what we are doing or what we're seeing on the crypto world, I would pass it on to Oriol.
I will just say that, as you know, we are a regulated company. And if we want to do -- and I think that we do have the potential, we do have the technology. And if there is a market and we have the required authorization from our regulators from the financial authorities, this is something where we are going and we are willing to participate. But it depends on our financial authorities and regulators.
Okay. Maybe I'll follow up on this, probably just to understand better. But it's an ongoing project or it's perhaps on the regulators. The regulators may have different type of opinions about the crypto price option technology. And the reason I'm asking is it seems that there is a huge opportunity for the Mexican Stock Exchange to take advantage even for retail investors that are willing to be part of the market to even have, let's say, the tools. So I'm just trying to understand if it's more on the regulatory side or it's -- or we need to do an effort as a market participant and push to the regulators.
Edson, we're having a hard time understanding you. We seem to have a very bad connection. Could you repeat the question, please?
Yes. This is what I was asking then. I'm just trying to understand if it is an ongoing project from the Mexican Stock Exchange? Or it will be an ongoing project to get the approval to list a product in the crypto world? Or we need to do something differently from the market participant guys as investors?
What we can says that we are seeing this blockchain or DRP technology as a good opportunity for post trade. So we just got approval this quarter for electronic or issuance of securities. We will be launching by the end of the month this new capability. And within that, we will start working on a project. And we have already started to move formally to evaluate alternatives to use blockchain technology for some particular projects, particularly for post trade. So I don't know if that answered the question.
Really, really helpful and congrats on the results.
Thank you.
Thank you.
Our next question is from Jorge Henderson with Santander.
Congratulations for the results and thank you for the complete presentation.
I have 2 questions. One is on listings. And so listings activity continued falling during 2021. So my question is on what you expect for listing this year? Should we expect a pickup? And also, in what segments do you expect to see more activity?
Also, my second question is on assets under custody. You had a positive growth on of assets under custody of 12% during 2021. But what caught my attention was the SIC segment growth of 26%. Could you share with us what is driving this growth? And what do you expect for this year?
Okay. Well, regarding the first question, the listing activity. As we mentioned last quarter, we have a couple of the activities and service on the equity side. But we still do not see a more robust pipeline regarding these instruments or even the equity itself. We have some filings still confidential for maybe one towards IPOs in the next quarters if market conditions are there.
Regarding the debt segment, we have financed the last quarter almost MXN 60 billion, which doubled what we did in the third quarter. So activity is moving up in the last month. We have done some placements in this month -- in January and February. And we have received in December and January from 9, 10 new programs for corporate debt listings, some still confidential. So there is an increase in the filings and potential pipeline also for the debt segment in the next couple of months. And important thing is that an important amount of that bond pipeline should be coming on the ESG line.
On the second question, yes, we did see relevant growth on assets under custody for both the local and the SIC. Local also, the stocks listed on the exchange grew more than 25% or such in the last year. So that's great deals. We've seen a great recovery on that.
And on the SIC, we saw a downturn -- relevant downturn in the first 3 months of the first year of the pandemia. They're large, huge recovery. So in the last 2 years, we've had 23% and last year, 26% growth in assets. So if you see, we have around $1.5 billion, that's $70 billion in assets under custody for SIC. And we continue seeing new listings and activity. So we expect to continue seeing growing, maybe not at that pace, but that's been a relevant driver for the business.
And what we are seeing also is more activity on the retail side. So within that, we have some ideas in order to work with broker-dealers to be able to capture more activity on the retail side, particularly for the global market.
Very complete. I have a follow-up there. You mentioned the retail activity. Do you know -- or do you have an approximate of the share of the retail activity in Mexico?
Honestly, not at that level. What we have seen is the number of accounts that have been opened by some of the broker-dealers, particularly by 2 or 3 that have grown substantially in the last year. But we do not have yet that detail of information, how much is being driven by institutional. Normally, as you know, the market, if there's a lot of activity from foreign institutions, global investors but also pension funds, mutual funds, et cetera. And we would like to get, at some point, the amount of retail, but we don't have it as of now.
Our next question is from Carlos Gomez with HSBC.
Again, congratulations on the results and the presentation. It is very good.
So 3 very brief items. The first one, if you can tell us about the tax rate for next year. It was low. Again, I understand that is part of inflation. Should we expect 29%, 30% as we usually have, in the future?
Second, could you comment on the future of your partnership in Chile and whether we should expect any changes there in the coming years?
And third, you may have explained this already, but the lower personnel expenses, and especially the variable compensation, I mean, is that a recurring item? Is that -- is there a particular reason why it was so negative this year? I guess that is a concern for your employees, what should we expect about it?
Thank you, Carlos. Regarding the tax rate, we had a couple of large impacts for this quarter. One is the car inflation, which leads to a tax deductible expense, not accounting. And the other one is that MexDer has net tax losses, which we hadn't booked in previous years because of, let's say, uncertainty as to whether we would be able to utilize them. We now have that certainty. So we booked the, let's say, the benefit of those tax losses.
So that comes in, let's say, at a negative tax. And that's what's explaining our low tax rate for the quarter. Going forward, depending on inflation, you could be anywhere between 25% to 28% tax rate.
On the partnership with Chile, I think it's very good. It's ongoing. We have a long-term relationship with them. We have signed contract with our partner there. So we don't see any changes for the foreseeable, I don't know, 5 years.
There was a possibility of buying out your partner. That has been renegotiated?
We extended -- the contract was extended in the same terms. So that's why I can tell you now that going forward, we don't see any changes.
On the lower personnel expenses, I would say last year, we achieved certain targets for our long-term compensation plan, which we didn't achieve this year. So that, on a comparison basis year-over-year, that explains half of the -- let's say, that explains half of the lower expenses. And on this quarter specifically, we did not reach the goals that have been set by the Board for management. So we're not getting the variable compensation we have been provisioning for. So we had excess provisions on that variable compensation.
Personnel expenses is booked at MXN 186 million for the quarter on a normal basis, on a -- it would have been around -- between MXN 200 million and MXN 205 million on an ongoing basis. So if you were to say -- if you want to take the recurring number or the ex onetime factor, it would have been between MXN 200 million and MXN 205 million.
This concludes our question-and-answer session. I would like to turn the conference back over for closing comments.
Okay. Well, it looks like we're done. Thank you very much for your participation for the quarter. Thanks a lot, and thanks also for your very interesting and good questions. If you need further information, you have our contact data. So please free to do it. And have a great day. Thank you very much.
Thank you. This does conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.