StoneX Group Inc reports a 34% increase in quarterly profit

Alan Sayer
August 10, 2021 1:52 pm

StoneX Group has announced in its quarterly financial reports that it has posted profits of $431.5 million for the third quarter of 2021. This is an increase of 34% when compared to the third quarter of 2020. The increase in profit comes after StoneX Group showed an increase in revenue that grew faster than expenses over the same period. 

Total revenue for the company for the third quarter of 2021 was $10.192 billion. This was an increase of 24% from the $8.234 billion for the third quarter of 2020. The cost of sales of physical commodities for these periods was at $9.76 billion in 2021 and $7.92 billion in 2020. This is an increase of 23%. While the percentage increases are relatively close, the increase in real terms is slightly wider than the impression this gives. 

With revenue showing an increase of $1.958 billion between 2020 and 2021, expenses showed an increase of $1.84 billion. It means that the single percentage point equates to a $118 million disparity between the two figures. 

This is shown in the profits for the third quarter, with 2020 posting profits of $322.6 million and 2021 posting profits of $431.5 million. This is why a 24% increase in revenue and a 23% increase in expenses equates to a 34% increase in profits.

The figures for the first three quarters of the year are slightly different, although they still show an increase in profits for the company. Total revenue for 2020 was at $39.854 billion, with 2021 revenues decreasing by 23% to $30.687 billion. 

Despite the fall in revenue, expense figures were improved over this period. StoneX decreased expenses by 24%, down to $29.404 billion in 2021 from $38.888 billion in 2020. This equates to a 33% increase in profits for the first three quarters of 2021 compared to 2020. This is very similar to the rise over the third quarter between the two years. 

The improved financial performance increased the net asset value per share at the end of June 2021 to $45.39. This is up from the $39.61 that it was worth at the end of September 2020.

Earlier this year, StoneX Group’s subsidiary, StoneX Markets LLC launched significant improvements to its self-service OTC Platform for commodities trading. Together with its integration into the StoneX Group ecosystem, it provides a single, digitized offering which allows users to fully access, manage and execute futures and options trading offered through the affiliated FCM, StoneX Financial Inc.

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Having gained a degree in economics, Alan entered the world of financial services starting his career in London and then moving to New York for a number of years. His first post at a City bank saw him establish a reputation as an forex trader. Having recently returned from New York after eight successful years, Alan is now a prosperous trader in his own right concentrating on commodities and forex.
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