INTL FCStone Reports All-Time High Results in Q3

Despite a lull in forex trading volumes, the firm's operating revenues in its FX Prime Brokerage increased by 13% year-on-year.

INTL FCStone Inc., a global provider of financial services, published its third quarter financial results ended June 30, 2018, for its fiscal year. The firm recorded all-time highs in both net income and earnings per share.

The firm provides an assortment of financial services. This includes execution technology, risk management tools, and clearing services, aimed at institutional clients.

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In the third quarter, the company’s net income was $24 million, the highest number to be recorded for the firm since its inception. This result is a large leap of 89 percent from last year’s third-quarter result, which was $12.7 million.

Operating revenues also showed a positive year-on-year jump of 27 percent in the third quarter, coming in at $259.8 million. For revenues, in particular, the firm broke records in its Clearing and Execution Services (CES) and Global Payments segments.

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For the firm’s CES the operating revenues for the segment were $88.9 million in the third quarter of this fiscal year. When compared to the same period last year, this was an increase of 36 percent. Revenues for the Global payments segment were also up by 16 percent year-on-year in the third quarter, coming in at $26 million – a record for the company.

Commenting on the results, Sean M. O’Connor, CEO of INTL FCStone Inc., said: “The execution of our strategy of providing global clearing and execution across asset classes has positioned us to benefit from increases in market volatility and short term interest rates which has resulted in our current quarterly EPS of $1.25, which represents nearly fourfold growth since the first quarter of fiscal 2017. We have now achieved two consecutive quarters with an ROE of approximately 20%.”

FX Prime Brokerage revenues increase despite a lull in trading

INTL FCStone provides professional traders and financial institutions with prime brokerage foreign exchange (FX) services. Through its platform, its customers can trade over-the-counter products which include spot, forwards and options. In addition, the broker offers non-deliverable forwards in both liquid and exotic currencies.

In the third quarter of this year, operating revenues in its FX Prime Brokerage increased by 13 percent year-on-year to $5.1 million. This increase in revenues comes in spite of a decline in foreign exchange volumes of 36 percent. This was largely driven by market volatility, which drove a widening of spreads.

For Physical Commodities, operating revenues was $14.9 million in the third quarter. This was up by 24 percent from the same quarter last year. In addition, operating revenues for Precious Metals were also up by 15 percent year-on-year to $8.3 million in the third quarter.

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