StoneX Posts 46% Y/Y Jump in Total Revenues in Q2 FY22

Fazzaco learned that StoneX Group Inc. (NASDAQ: SNEX), a diversified global brokerage and financial services firm providing execution, risk management and advisory services, market intelligence and clearing services across multiple asset classes and markets around the world, has announced its financial results for the fiscal year 2022 second quarter ended March 31, 2022, revealing a jump in its total revenues.

Fazzaco Live Webinar on 12th May: Vladimir Moshkov on How to Start a Crypto Exchange from Scratch

More specifically, total revenues jumped 46% to $16,382.7 million in the three months ended March 31, 2022 compared to $11,244.8 million in the three months ended March 31, 2021. Operating revenues increased $73.3 million, or 16%, to $544.7 million during this period, compared to the previous year's $471.4 million. Besides, the financial results for the fiscal year 2022 second quarter include a nonrecurring gain of $6.4 million related to a foreign exchange antitrust class action settlement received in March 2022.

In terms of the nonrecurring gain, StoneX states that it has acquired Gain Capital Holdings, Inc., which brings the company some major Forex and contracts for differences (CFDs) trading brands. As a result, operating revenues derived from FX/CFD contracts increased $24.2 million, or 32%, to $98.9 million in the quarter. When evaluating the acquisition of Gain, management also considers the amortization expense related to the intangible assets identified and recorded as part of the acquisition and the net loss on the internal merger of the operations of Gain's U.K. subsidiaries.

Sean M. O'Connor, CEO of StoneX Group Inc., stated: "Our broad product offering and diversified client base, combined with generally favorable market conditions, helped us deliver record core operating results in the second quarter of fiscal 2022. This included net income of $64.0 million, or $3.11 per share, with especially strong results coming from our Commercial and Retail segments, which represented an ROE of 26.1% on stated book value and a 29.0% ROE on tangible book value. I am also pleased with our success in navigating the heightened volatility and other challenges resulting from the war in Ukraine. For the year-to-date period, we recorded net income of $105.7 million, or $5.15 per share, and an ROE of 22.1% on stated book value. Current market conditions remain broadly positive for us with heightened volatility and rising interest rates."