Amana Capital’s UK arm reports weak financial results for FY 2020
The UK business of UAE-based FX and CFDs broker, Amana Capital, has announced its financial results for the fiscal year ending December 31, 2020. The FCA-regulated firm also shared a few details about its operational metrics.
Although the group failed to match some of last year’s performance metrics, having suffered from operational loss and lower revenues, it turned an organic increase in funded accounts.
Over the previous fiscal year, Amana Financial Services UK Limited saw its operating revenue decrease to $645,000 in FY 2020, down from $720,000 a year ago, or 10 percent lower year-over-year.
In terms of its bottom line, the firm reported a net profit at a figure of $19,799 for 2020, compared to a net profit of nearly $21,242 in the previous year.
Amana’s revenues consisted mainly of commission earned on foreign exchange trading by clients. The latest results highlight a downturn for the firm, though it managed to increase the number of funded accounts to 412, which is three times more than the 126 accounts it reported in 2019.
The brokerage firm said its band of investors grew during the COVID-19 era as trading had been booming and all platforms exhibited the same growth pattern.
Finally, Amana UK registered a decreasing number of new accounts with 129 as of Q4 2020, well below the 223 clients it onboarded in the previous quarter.
UK brokers have been facing two primary risks and uncertainties, the Brexit and the trend towards zero-commission brokerage in the industry.
The no-fee war, however, could remain the biggest concern with most brokers booking a reduced, but still significant proportion of their revenue from brokerage commissions.
Dubai-based Amana Capital made headlines last week when it appointed FX industry veteran Muhammad Rasoul as its new CEO. Rasoul took over from Ahmad Khatib, who stepped down for personal reasons.
The outgoing CEO, who led the Middle East-focused broker since its inception back in 2010, will stay on in an advisory role to ensure a seamless leadership transition.
The appointment to Amana CEO caps off an impressive career for Rasoul, who has more than 25 years of leadership experience in both retail and institutional brokerage industries, with a strong background in forex, futures and OTC derivatives trading.
