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IG Group posts record revenue, profit in first half
IG Group has reported record revenue and profit before tax for the six months to November 30 2017.
Net trading revenue for the first half amounted to £268.4m (€305.9m/$374.7m), which represents an increase of 10% on the same period in the previous year.
Profit before tax climbed 29% year-on-year to £136.2m, with a higher margin of 50.7%, while operating expenses, excluding variable remuneration, were cut 7% to £117.6m.
Diluted earnings per share for the period came in at 29.3 pence, up 30% on the first half of 2016.
Peter Hetherington, chief executive of IG Group, said: “The company delivered record revenue and record profit before tax during the first half of FY18, and continued to make good strategic and operational progress.
“The business is developing new products and services, and is establishing operations in new geographies, in order to broaden its client base, extend its competitive advantage, and to allow it to continue to market OTC leveraged derivatives to potential new clients for whom it is appropriate.”
Hetherington also spoke about IG Group’s ongoing commitment to regulation, after the UK Financial Conduct Authority this month announced that it is to review the current process for the provision and distribution of contracts for difference products
“The group is taking action to mitigate the potential financial impact of regulatory change, and to position the business so that it will continue to deliver for all of its stakeholders under a more restrictive regulatory environment,” Hetherington said.
“IG supports the objective of regulators to improve retail client outcomes in the industry.
“The company's long held view is that the most effective measure to improve client outcomes is to ensure that the product is only marketed to the right people in the right way; the current ESMA proposals might not achieve this.
“The company will continue to engage fully with regulators, to seek to achieve the best possible outcomes for current and future clients of this industry, and the greatest long term value for shareholders.”
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