OANDA Europe Limited, the UK arm of the global brokerage group, disclosed its financial results for fiscal 2020, which ended December 31. The FCA-regulated operation witnessed a massive jump in the yearly revenue and also ended the year with profits.
According to the latest Companies House filing, the revenue of the brokerage operator from the UK business came in at £29.2 million, which is almost 148 percent higher than the previous year’s £11.8 million.
Though the administrative expense also went up with the skyrocketing revenue, the UK company generated £5.6 million in operating profits, compared to a loss of £3.5 million in the previous year. The net profit of the company stood at £4.56 million in the 12 months.
Client Activities Skyrocket
The company further highlighted that it has increased the size of its client base, revamped its product line, and tightened control over its cost base.
“During the early part of 2020, the financial markets experienced heightened volatility driven primarily by the Covid-19 pandemic. This, coupled with investment in marketing and improvements to our product offer, led to a rise in new customers, higher levels of reactivation of dormant clients and increased trading activity from existing clients; leading to a significant increase in trading revenue,” the filing stated.
The group also formed a new regulated entity in Malta last December as its preparation for continuing to offer services to European clients following Brexit. Earlier this year, OANDA also completed the acquisition of Polish broker, Dom Maklerski TMS Brokers SA (TMS) to further expand its reach in the European markets.
The UK company is now focusing to continue to grow its client base in the country and is also focused on evolving its product offerings.
“The key objectives in 2021 are to continue to deliver profitable earnings whilst maintaining effective risk, expense management and regulatory compliance,” the filing added.
Source: Read Full Article