CMC Markets enjoys a bumper first half 2021

Darren Sinden

Interestingly, CMC Markets’ venture with ANZ accounted for 63% of the division’s revenues in H1 2020, contributing £19.20 million in sterling terms and the group hopes to expand this business further with the launch of dedicated stockbroking app planned in the fourth quarter

CMC markets reported figures for the half-year ending 30th September 2020 last week representing H1 of the financial year 2021, and as has been the case with major brokers during the pandemic they contained some impressive headline statistics.

Net operating income rose by 126% to £230.9 million driven by a 68% rise in income from CFDs and jump in active client numbers by 42%.

Additionally, the stockbroking division in which the group operates a partnership with ANZ Bank saw revenues jump by 82%, as market volatility drove a significant increase in client activity.

The joint venture with ANZ accounted for 63% of the division’s revenues in H1 2020, contributing £19.20 million in sterling terms and the group hopes to expand this business further with the launch of dedicated stockbroking app planned in Q4.

Shareholders in CMC markets have been rewarded with the announcement of a 9.20p interim dividend, as part of the board’s aim of paying out 50% of post-tax profits to shareholders.

Looking at the business mix in more detail stockbroking and equity CFD trading accounted for a combined 18% of revenues FX and commodities another 23%.

However, by far the most widely traded products and the biggest revenue generators were index CFDs which accounted for 58% of CMCs revenues.

From a geographic standpoint, APAC and Canada were responsible for 48% of revenues eclipsing the UKs 33% and Europe’s 19% contributions.

Total costs in the business rose as well to reach £89.80 million but headcount increased by nearly 100 staff during the period, staff costs rose by 8% on higher headcount and salary reviews.

Variable remuneration or bonuses rose to £9.80 million though that figure does include share-based awards.

CMC markets shares have rallied by an impressive 22.95% over the last month and by 28.13% over the last three months, during which time they ascended into the FTSE 250 index.

After such a promising start, in what we might think of as the big league, what the can the group do now to maintain that momentum?

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