IG Group Expects to Provide for Majority of CHF Related Client Debts

IG Group's attempts to recover client funds continue with half of the negative balances resulting from the Swiss National Bank's

IG Group logo newAccording to a trading update released by IG Group (LON:IGG), for the three months to February 28, 2015, which constitutes the third quarter of the firm’s 2015 financial year, it has reported revenues totaling £91.8 million ($135.8 million). The number includes a charge totaling £11.8 million ($17.5 million) related to the Swiss National Bank (SNB’s) induced volatility.

The company highlighted in its announcement that it expected to provide for the majority of client debts it was owed, totaling £18.4 million ($27.2 million) with about half of the debtor accounts already settled.

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At the same time, the firm highlighted that the majority of the remaining debtors were not likely to be in a position to settle their obligations with the brokerage.

Excluding the SNB effects, revenues at IG Group (LON:IGG) were up during the third quarter by 7.1% to £103.6 million ($153.2 million).

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IG Group Regional Revenues
Share of revenues per region

The majority of the company’s growth in the revenues per client metric came from the Australian arm of business where the number increased 16% year-on-year. The U.K. remains the main powerhouse for the company, accounting for 54% of the firm’s global revenue.

Revenues per client increased in the U.K. and Australia by 5.8% and 11% respectively, but dropped lower in Europe and the rest of the world by 15% and 3.7%.

The full effects of the negative sentiment resulting from the SNB debacle causing trades of  IG Group’s clients to be settled around 0.9250 in the EUR/CHF may yet surface, as the company has received unwanted media attention in the past several weeks.

Active clients’ numbers were reported higher by 13% year-on-year, with IG Group (LON:IGG) highlighting strong growth in the US and South Africa.

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