INTL FCStone Inc. has published its financial results for the second quarter of its fiscal year 2020 this week, revealing a solid uptick in revenues and trading volumes for the three month period.
On Wednesday, INTL FCStone, a diversified brokerage and financial services firm, revealed that it had achieved total revenues of $20.4 billion for the three months ended on the 31st of March 2020 – the second quarter of its 2020 fiscal year.
When measuring this against the same period of the prior year, which had total revenues of around $7.2 billion, Q2 of fiscal 2020 has achieved a growth of 183 percent in total revenues.
Physical commodities revenue increased on INTL FCStone
Posting the largest growth in revenues, was the sale of physical commodities, which increased by 189 percent on a yearly measurement, hitting $20.0 billion in Q2 of 2020, up from $6.9 billion in the prior year corresponding period.
Net operating revenues also marked a solid growth during the second quarter, increasing from $165.2 million in Q2 of 2019 by 47 percent to reach $243.4 million in the most recent period.
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Commenting on the results, Sean M. O’Connor, CEO of INTL FCStone Inc., said in the statement: “We managed to navigate the unprecedented market volatility and produce record results at nearly every level which is validation of our business model, our client first philosophy and our risk management approach.”
“Our focus is to remain vigilant as we continue to see volatility and market dislocations, while at the same time helping our clients to manage their way through these markets. Longer term we see headwinds related to lower interest rates which may be offset by higher volatility and the opportunity to increase market share as the industry continues to consolidate. We look forward to closing the Gain Capital transaction as we enhance and expand our financial platform and client base.”
FX Prime Brokerage notional volume falls
For the three months ended on the 31st of March 2020, the number of over the counter (OTC) contracts was 609,500. This represents an uptick of 59 percent year-on-year.
The trading volume for the company’s FX Prime Brokerage was $51.6 billion notional. Unlike most of the other sectors, this is actually lower than the notional volume recorded in Q2 of 2019, which was $58.2 billion, translating to an 11 percent drop.
“The COVID-19 pandemic has resulted in unprecedented market conditions and significant volatility in the markets. Our second quarter results reflect strong revenue growth in Equity and Debt Capital Markets primarily related to increased customer flow to our equity market making desk and a widening of spreads in fixed income dealer as a result of periods of high volatility in the global markets as a result of economic concerns related to the COVID-19 pandemic,” the company said in its statement.
“We have also seen a growth in operating revenues driven by increased customer activity in Exchange-Traded Futures & Options and FX Prime Brokerage businesses, as well as a significant increase in customer demand for precious metals in light of the COVID-19 global pandemic and the resulting effect on the global economy.”