Walbrook Capital Market’s Net Loss Grows to 70 percent in 2016

The company reported a huge drop in commission revenue due to the SNB crisis and ownership change.

UK-based foreign exchange and CFDs brokerage Walbrook Capital Markets (formerly FXCM securities) has announced its full accounts for the year ending 31st December 2016. During the fiscal year, the FCA-regulated company’s losses have grown 70 percent to £4 million ($5.2 million) from £2.3 million ($3.07 million) in 2015. Revenues totaled £1.15 million, compared to £3.2 million a year ago.

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Detailing the results, the net operating income of the company during the year stands at £0.94 million ($1.23 million), a drop of over 68 percent when compared with the £2.9 million ($3.87 million) in the same period a year ago. The majority of the revenue is derived from brokerage activities and there has been a huge drop in commission revenue during the year.

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Despite increasing losses and declining revenues, clients of Walbrook held about £17 million more on their accounts as of the end of 2016.

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Walbrook’s management has highlighted several concerns about the future growth prospects of the firm as it was looking for a new buyer. In the strategic report, the director of the company states that the drop in turnover and widening losses are the results of uncertainty regarding the company’s future. This comes on the back of the sale of the firm by FXCM following the SNB event in January 2015.
The company has been working on creating new synergies with its new owner, AS Expobank, however the pace of changes appears to have mandated a new change in ownership.
Walbrook Capital Market was acquired by ITI group from its previous shareholder earlier in August 2017.
ITI Group has been focusing on providing its services in emerging markets. The firm is backed by Russian capital and continues acquiring clients in the broker-dealer are in the UK after acquiring Uralsib Securities in April this year. The former subsidiary of Russian bank Uralsib changed its name to ITI Capital after the deal.
The new owner of Walbrook Capital Markets is controlled by Russian investment manager Da Vinci Capital.
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