IG Group Performance for Fiscal Year 2024: Growth & Challenges

IG Group financial performance for the fiscal year 2024 highlights a complex world of growth and challenges, with the company’s shift to enhance customer engagement bearing mixed results.

The company’s overall revenue for FY24 dipped by nearly 4%, largely offset by a significant rise in interest income. Net interest income soared to £142.4 million, up from £80.8 million the previous year, thanks to higher interest rates. Without this boost, the revenue decline would have been more pronounced, reflecting a challenging year for the firm.

Regionally, Singapore emerged as a standout performer with a 6% increase in revenue, attributed to heightened trading activity by large clients. In contrast, other major regions showed varied performance. The UK, APAC, and emerging markets collectively faced revenue declines, though US revenue grew modestly from £140.9 million to £143.2 million.

IG Group Performance for Fiscal Year 2024: Growth & Challenges

IG Group’s net trading revenue decreased to £844.9 million from £941.8 million in FY23. Despite this drop, the firm maintains a strong position in the market, with an average revenue per client of £2851, or approximately $3625 based on exchange rates as of 31 May 2024.

The company’s operational adjustments, including a significant reduction in workforce, were implemented in October 2023. These measures, mirroring those of competitors like CMC Markets, led to an 8% reduction in headcount by the end of the financial year, at a cost of just over £19 million. IG Group has signaled further headcount reductions for the current fiscal year as part of its ongoing operational improvement program.

In the OTC (Over-the-Counter) segment, revenue fell by 9%, and the number of active clients trading OTC products decreased by 6%. Despite being a leading global provider of OTC derivatives by revenue, IG has seen its market share decline in primary accounts in key markets such as the UK and Singapore.

So, IG Group continues to provide access to approximately 19,000 financial markets, maintaining a strong position in the broker sector despite the challenging conditions.

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