Exclusive: Walbrook Capital (formerly FXCM Securities) posts £4 million loss as ITI Group takes over

walbrook capital markets fxcm

LeapRate Exclusive… LeapRate has learned via regulatory filings that FCA regulated CFDs broker Walbrook Capital Markets Limited posted a £4.0 million (USD $5.2 million) loss in 2016 amid plunging revenues.

Walbrook was originally known as FXCM Securities, the UK CFD arm of Global Brokerage Inc (NASDAQ:GLBR) unit FXCM. FXCM sold the company in late 2015 to Latvian billionaire Igor Kim’s AS Expobank, as part of FXCM’s program to sell assets and businesses in order to repay its large loan to Leucadia.

Expobank renamed the company Walbrook and brought in a couple of new CEOs over its short tenure as owner, neither of whom was able to grow the business. Last at the helm as CEO under Expobank was Conor Ringland, who was previously Head of the UK for Denmark-based Saxo Bank from 2007-2014, and has also worked at E*TRADE Financial Corp (NASDAQ:ETFC) and most recently was Head of Financial Markets – Digital at Lloyds Bank.

Expobank then turned around and sold Walbrook earlier this year to ITI Group, a Russian focused brokerage, which received backing for the deal from Russian venture investment firm Da Vinci Capital.

Back to Walbrook’s 2016 figures…

Under Expobank’s ownership, Walbrook saw revenues plummet from £3.0 million in 2015 to just £948,000 last year. The company’s cost base remained roughly at the same level at just above £5 million, leading to the £4 million net loss.

Despite the poor results, Walbrook was able to grow client funds held to £69.7 million from £42.5 million the previous year.

While the large client asset levels gives ITI Group a strong base from which to grow the business, the company and its Da Vinci Capital backers certainly have their work cut out for them to turn around Walbrook. In addition to acquiring Walbrook, ITI Group also this year bought FCA regulated Uralsib Securities from Russia’s Uralsib Group. Uralsob Securities provides mainly global market access to Russian high net worth clients.

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