(Reuters) – London-listed online trading platform CMC Markets said on Thursday annual profits more than doubled as volatility in financial markets last year drove strong trading volumes.
CMC, which facilitates the trade of complex financial instruments, raised its targets multiple times this year as a retail trading frenzy on Wall Street fuelled volumes after the pandemic-driven swings last year.
Its pretax profit rose to 224 million pounds ($315.91 million) for the year ended March 31 from 98.7 million pounds a year earlier. Net operating income jumped 63%.
Rivals IG and Plus500 also reported robust financial results, driven by a sell-off last year due to fears over the health crisis, and more recently, powered by a boost from the “GameStonk” retail trading phenomenon.
“The Group believes that existing active client levels are likely to be sustainable,” CMC said, but pointed towards a moderation in trading activity from prior highs.
($1 = 0.7091 pounds)
(Reporting by Pushkala Aripaka and Muvija M in Bengaluru; Editing by Devika Syamnath)
