StoneX Group, the company behind two forex and contract-for-differences (CFDs) brands, Forex.com and City Index, has released its Q4 2022 financial reports. The company reported $81.4 million in operating revenues from its FX and CFD divisions during the three months between July and September.
StoneX’s Q4 FX/CFDs operating revenues jump 46%
These operating revenues increased by 46% more than reported during the same quarter last year. Moreover, the total demand for these derivatives contracts increased by 40% to $339.3 million.
However, the quarterly numbers dropped compared to the two consecutive quarters last year. During the second fiscal quarter, the operating revenue for the FX/CFDs contracts came to $98.9 million, dropping to $86.8 million during the third quarter.
The operating revenues for FX and CFDs increased year-over-year amid a rise in trading demand for these financial instruments. The average daily volumes for FX/CFDs contracts for the trading platforms owned by StoneX Group increased by 11% year-over-year to $12.2 billion. Moreover, the FX/CFDs contracts RPM increased from $77 to $103, representing a 34% increase.
StoneX Group closed the acquisition of GAIN Capital in mid-2020. This acquisition gave the group ownership over the two leading forex and CFDs trading brands known as City Index and Forex.com.
StoneX Group’s financials
The group revenues for the quarter were at $16.3 billion. This was a 38% increase in revenues during the last quarter of 2021. The operating revenues increased 50% to $583.4 million, while the net operating revenues were $387.7 million. This was a 48% increase.
The pre-tax income for this group also jumped 1,255% during the quarter to $66.4 million. This was an 80% increase during the fiscal year to $277.2 million. The Q4 net income came in at $52.3 million, totaling $207.1 million during the fiscal year. This was also a notable increase on a quarterly and annual basis.
The CEO of StoneX Group, Sean M. O’Connor, commented on the development, saying that the results demonstrated the company’s resilience in periods of market volatility and uncertainty in the geo-economic sector, alluding to the recent hikes in interest rates by central banks.
“We benefited from favourable market conditions with elevated volatility and increased interest rates on our growing client float but have not yet realized the full impact of rising interest rates on our earnings,” O’Connor added.