StoneX sees 21% increase in FX and CFDs revenue in Q1

Nasdaq-listed StoneX Group Inc. today announced its financial results for the first quarter of the fiscal year 2022 ended 31 December 2021. For the first three months of FY22, the international brokerage reported an overall revenue surge of 55% to $14.3 billion.

Operating revenue stood at $450.5 million. This was 19% higher than the same period last year when it reached $380.1 million. It was also 15.5% up quarter-on-quarter.

Net income came at $41.7 million during the first quarter, registering a 114% increase compared to Q1 FY21.

StoneX’s ROE also improved by 18% in Q1 compared to the same quarter the previous year.

The diluted earnings per share (EPS) jumped 108% in Q1 to $2.04 per share.

FX and CFDs demand

The forex and contracts for differences (CFDs) market generated operating revenue of $72.2 million, registering a 21% rise compared to the same period the previous year. StoneX highlighted that this was driven by a $12.1 million increase in operating revenues derived from retail FX/CFD in its Retail segment.

In 2020, StoneX acquired Gain Capital which provides a range of forex and CFDs services. However, the brokerage also faced currency risks due to its exposure to Gain’s UK domiciled subsidiaries. StoneX reported a $2.7 million foreign currency loss in Q1 as the Gain UK subsidiaries had a functional currency of the British pound.

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

Sean M. O’Connor, StoneX

Sean O’Connor
Source: Twitter

We delivered strong results in our fiscal first quarter with a diluted EPS of $2.04, an ROE of 18.0% on book value and 20% on tangible book value. We continued to experience higher volumes across the board from increased client engagement and market share gains. Increased market volatility and the prospect of rising interest rates provide additional catalysts for continued growth.

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