StoneX Group Inc. (NASDAQ:SNEX), the owner of Forex brands such as FOREX.com and City Index, has announced its financial results for the fiscal year 2022 fourth quarter ended September 30, 2022.
Operating revenues derived from FX/CFD contracts increased $25.7 million, or 46%, to $81.4 million in the three months ended September 30, 2022 compared to $55.7 million in the three months ended September 30, 2021, principally due to a 34% increase in FX/CFD contracts RPM as well as an 11% increase in FX/CFD contracts ADV.
Let’s note that the FX/CFD operating revenues for the preceding quarter were $86.8 million.
Operating revenues derived from OTC derivatives increased $14.6 million, or 42%, to $49.0 million in the three months ended September 30, 2022 compared to $34.4 million in the three months ended September 30, 2021. This increase was principally due to a 31% increase in the OTC derivative average rate per contract as well as a 10% increase in OTC derivative contract volumes compared to the three months ended September 30, 2021.
Operating revenues derived from securities transactions increased $69.7 million, or 62%, to $181.8 million in the three months ended September 30, 2022 compared to $112.1 million in the three months ended September 30, 2021. This increase was principally due to a 60% increase in RPM as well as an 18% increase in ADV compared to the three months ended September 30, 2021.
Across all segments, operating revenues increased $193.3 million, or 50%, to $583.4 million in the quarter to end-September 2022 compared to $390.1 million in the equivalent period a year earlier.
The results of the year ended September 30, 2021 included a gain of $3.3 million related to the acquisition of GAIN Capital Holdings, Inc. in the fourth quarter of fiscal 2020, due to an adjustment to the final liabilities assumed, resulting in an adjustment from the initially determined values as of August 1, 2020.
Quarterly Net Income was $52.3 million, with ROE of 19.8%. Quarterly Diluted EPS were $2.49, up 592%.
Sean M. O’Connor, CEO of StoneX Group Inc., commented:
“These results demonstrate the resiliency of our company during times of volatile markets and geo-economic uncertainties, and validates the ongoing investments we’ve made in the business. We realized strong growth across our operating segments resulting from increased client engagement as well as growth in our client base. We benefited from favorable market conditions with elevated volatility and increased interest rates on our growing client float but have not yet realized the full impact of rising interest rates on our earnings. We are confident that StoneX is well-positioned in fiscal 2023 to capitalize on the growing value we believe our franchise can deliver to empower our clients across all asset classes.”