CMC Markets : financial results in 2017
CMC Markets has published its financial results for the fiscal year 2017, which ended on 31 march. This has been a tough year for the brokerage firms, the revenues from spreads and commissions have decreased.
The net operating income of 169 million £ has declined by 5 %, the pre-tax profit of 48.5 million pounds sterling decreased by 9%, while earnings per share of 13.7 pence has decreased by 9 %.
In relation to the key performance indicators, the total number of transactions performed by clients of CMC Markets decreased 6 % to 62.7 million. The total value of trades also decreased by 3 % to 2.02 trillion pounds sterling. It represents 168 billion pounds (217.8 million dollars) volumes of trading monthly.
While the number of active customers has increased from 5% to 60 082, the average income per active client has decreased from 11% to 2,517 £ (3 261 $).
The clients of CMC Markets have treated approximately 52 % of their transactions via mobile devices, which continues to show the importance of mobile to the brokers in the trading industry at the retail level.
The institutional segment of the society shows an increase of 82% of the value of trades.
CMC Markets publishes outlook cautiously optimistic for 2018, because the first few months of the financial year of the company prove to be better compared to the same period a year ago. The company has not expressed any concerns explicit with regard to the decision of the FCA on the new regulations for the industry. The broker pointed out that it is expected that the new regulatory framework would lead to “an improvement of the practices of the industry and well positioned the company for the future”.
Peter Cruddas, CEO of CMC Markets said : “It is clear that the regulatory changes may have an impact on the company, but we believe that we are well positioned to benefit from market share gains in the medium and long term, with our ability to adapt our leading technology and our focus on customer service and regulatory compliance, backed by our financial strength.”
To read the complete press release of the results of 2017, click here.