Intl FCStone Reports Promising Results in Its Quarterly Earnings Net Income in the Green

US financial services specialist firm, INTL FCStone reports quarterly and annual operating revenues. Overall the group was in the green

intlfcstoneListed provider of multi-asset trading products INTL FCStone reported strong operating results in its quarterly and annual metrics. The firm saw a rise across its business divisions. The firm’s net income was up on a quarterly level, reaching $5.8 million, significantly higher than 2013 figures. Net income was flat year to date on a year-on-year basis as it surpassed 19 million US dollars.

The 90-year-old brokerage firm saw record figures during the quarter. Its global payments division saw both quarterly and annual growth, with 50% and 35% increases respectively.  INTL FCStone is a strong player in the FX prime brokerage space, the firm connects to a number of platforms and offers leverage in margin FX instruments.

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The firm reported its three-month FX volumes for the US. During the quarter, it traded $61 billion, averaging one billion US dollars in daily trading figures, a 15% drop from 2013 figures where the provider saw quarterly total volume exceed 71 billion dollars.

Sean M. O’Connor, CEO of INTL FCStone, commented about the results in a statement: “We continued to see steadily improving conditions over the last year for our overall business. We realized record operating revenues, up 17% for the quarter versus a year ago and up 5% for the year. Despite cost pressures, we managed to hold overall expenses to a 10% increase for the quarter and 3% for the year overall.

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“This resulted in our income from continuing operations increasing by $4.1 million for the quarter and 5% for the year overall. Excluding the non recurring after-tax gain of $5.8 million realized last year on the sale of our LME and Kansas City Board of Trade shares, the net income from continuing operations increased by 53% on an annual basis.

“Our significantly improved results were driven by strong growth in revenues from Global Payments (up 35% for the year), Commercial Hedging, our largest segment, (up 11%), and Securities (up 15%).”

The firm saw a decline in its core commodities trading business as the summer slowdown impacted the sector. In its Physical Commodities business figures dropped by 23%. The firm saw a similar setback in its Clearing and Execution Services, which showed a six percent decline.

O’Connor adds: “We are very pleased to have recently reached an agreement to acquire G.X. Clarke & Co., which rounds out our product offering in Securities by adding a deep and broad client base in the institutional market, as well as a proven expertise in the government rates markets. This transaction is expected to close in January 2015, and is expected to have a material and positive impact on our Securities segment.”

The firm is listed on US trading venue NASDAQ and is recognised as a Fortune 500 organisation. The stock closed trading at $17.75.

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