CMC Markets registers growth in APAC, sees no negative impact from European regulatory changes

Maria Nikolova

CMC Markets says its stockbroking partnership with ANZ is on track for launch in September 2018.

Online financial services provider CMC Markets Plc (LON:CMCX) has earlier today posted its interim results for the six months to September 30, 2017, highlighting the growth of its APAC business and the lack of any apparent negative impact from the European regulatory changes on its results.

As FinanceFeeds has reported earlier, CMC sealed a stockbroking partnership with Australia and New Zealand Banking Group Ltd (ANZ) in March this year. Today, CMC said the partnership remains on track for delivery next year. The company noted that its existing retail and intermediary client base are also expected to be significant beneficiaries of major platform enhancements required as part of the implementation, encompassing mobile trading, international equities, online options and advisor functionality.

I am delighted to confirm that, having recently visited Australia to see ANZ’s senior team, our stockbroking partnership is on track for launch in September 2018”, Peter Cruddas, Chief Executive Officer.

Today, CMC reported improvement in its Australian stockbroking business on prior year performance, with revenue up 11% at £4.1 million (H1 FY17: £3.7 million), but unchanged in local currency terms. The positive performance was also evidenced through both strong client acquisition (11% increase in new clients), and a reduction in client cost per acquisition delivered through further improvements in on-boarding and digital marketing.

Regarding regulatory changes in Europe, CMC noted that while it introduced negative balance protection for its clients in Germany in early August, as required by the local regulator, net revenue has continued to grow.

Peter Cruddas, CMC Markets’ CEO, said:

We continue to await the outcome of the industry review by the European regulators, and have had meetings with the various regulators as part of the consultation period. What is clear from the consultation process is that the regulators are concerned with the level of client losses, and inadequate appropriateness and on-boarding checks.

We fully support increased regulatory oversight of the industry and believe that CMC’s business model will benefit from such proposed changes. “

CMC’s established markets of the UK, Australia and Germany have delivered growth in net revenue of 16% to £60.4 million, 71% of the Group total. This has been achieved through both the retail and institutional channels. The Group institutional business is predominantly based in the UK and net revenue grew by 45%.

The Poland office continues to grow, with active clients 96% higher than the first half of the prior year and net revenue 157% higher.

Finally, the Group is making progress regarding the UK’s exit from the European Union and has plans in place to ensure passporting rights are maintained post-March 2019.

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