StoneX reports a 29% rise in operating revenues to $471.4 million in Q2 2021

Global brokerage StoneX, has published its financial results for the second quarter of the financial year 2021. The quarter ended on 31 March 2020 and saw a 29% rise in operating revenues as the total reached $471.4 million.

StoneX reported net income of $55.3 million, marking a 41% increase compared to the same period the previous year. The company also registered diluted EPS of $2.73 per share and ROE of 26.7%.

Sean M. O’Connor, CEO of StoneX Group Inc., commented:

Sean M. O’Connor, StoneX

Sean O’Connor
Source: Twitter

I believe this quarter represents the strongest core operating performance in our history, with record operating revenues, a 41% increase in net income versus the prior year and a 26.7% ROE on stated book value. This quarter demonstrates our efforts to build a diversified global franchise with growth in operating revenues and income across all of our operating segments. We continue to increase both our number of clients and their underlying volumes, which we feel positions us for success in the future.

During the second quarter, the financial services company registered operating revenues in listed derivatives grew 3%, to $101.1 million. The operating revenues from global payments reached $32.8 million, up by 14% compared to the second quarter in 2020. Operating revenues in OTC derivatives dropped 21%, to $35.1 million and from securities transactions were up 20% at $157.8 million.

The operating revenue from FX/CFD contracts reached $74.7 million, large portion of which was attributed to the acquisition of Gain Capital Holdings, Inc.

The announcement stated:

Operating revenues from FX/CFD contracts increased $65.8 million, to $74.7 million in the three months ended March 31, 2021, as a result of an incremental $71.2 million in retail FX/CFD contracts operating revenues resulting from the acquisition of Gain Capital Holdings, Inc. (“Gain”) which was partially offset by lower FX operating revenues in our legacy FX prime brokerage business.

StoneX also reported a 108% jump in operating revenues from physical contracts reaching $49.5 million resulting from continued strong customer demand for precious metals.

StoneX Group Inc.’s London-based subsidiary, StoneX Financial Ltd, has become a member of the London Stock Exchange and Turquoise, the pan-European MTF. The membership expands StoneX’s border equities trading and cross-asset capabilities.

The broker recently announced that its Fixed Income Division has strengthened its Treasury Desk and presence in the treasury markets with the hire of industry veterans Stefan Dannibale, Eric Drexler and Matt Rader.

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