OANDA UK turns profit in 2020 as revenue shot up by 150%

abdelaziz Fathi

The UK arm of FX brokerage firm OANDA has unveiled its financial statement for the fiscal year ending December 31, 2020. The FCA-regulated firm’s latest report was characterized by positive metrics in areas ranging from operating income to revenues, underpinning its positive guidance for 2021.

Specifically, OANDA Europe Limited witnessed a strong increase in its operating revenues, which came in at £29.2 million. The company has almost tripled its revenue figure from £11.8 million reported back in the same period a year ago.

In terms of its operating income, the figure put together a strong year-over-year performance relative to 2019, having yielded a profit of £5.6 million compared to an aggregate loss of £3.5 million for the 12 months ending December 31, 2019.

The broker’s ultimate bottom-line figure, which factored out interest receivable and other income, also improved to a net profit of £4.5 million compared to a net loss of £3.6 million a year earlier.

Meanwhile, the strong growth in 2020 revenue was partially offset by a notable rise in operating expenses which totaled £23.2 million, up 50 percent from £15.2 million for 2019.

OANDA has been ratcheting up its preparation for Britain’s exit from the Europe Union. Earlier in 2020, the multi-regulated broker secured the regulatory approval for its new European subsidiary in Malta. Working under the brand ‘OANDA Europe Markets (OEM)’, the new entity is licensed by the Malta Financial Services Authority.

OANDA also acquired Polish broker Dom Maklerski TMS Brokers SA, aka TMS Brokers, to grow across the Baltic countries. Established in 1997, TMS is the oldest and second-largest local Polish brokerage and is regulated under the Polish Financial Supervision Authority (KNF), giving the business access to markets in the European Union.

At the time, OANDA signaled that it may close more of such deals, with the company stating that TMS is the first in a number of strategic acquisitions OANDA is looking to complete over the next couple of years.

Under Bambury’s leadership, the firm has undergone a transformative change in its operational configuration, widening its product offering and increasing its marketing investment in order to drive further growth.

OANDA is a multi-regulated broker with offices in Toronto, Europe and the Asia Pacific region. The ‎company operates an FX trading platform utilized by a mix of retail and institutional investors. ‎Moreover, it provides currency information services to individuals, large corporations and portfolio ‎managers.‎

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