CMC Markets net operating income to be in line with last year

Online trading group CMC Markets said on Thursday that its performance in the first quarter was as expected and that net operating income is set to be at a similar run rate to last year.

In an update for the period from 1 April to end of June, the company said that consistent with its update last month, client trading and investing activity has declined by 15% to 20% year-on-year in "quiet" market conditions.

"These conditions have continued into the start of Q2, however weaker client activity has been offset by stronger interest income, resulting in overall net operating income tracking at a similar run rate to the same period last year," it said.

"Underlying KPIs including client money, assets under management, and active clients across both the trading and investing businesses remain robust."

CMC said it continues to focus on delivering a strong business performance for its financial year ending 31 March 2024, with investment plans and operating expenses excluding variable remuneration expected to be in line with prior guidance.

"Progress towards new business growth across all platforms and geographies continues as expected," it said.

"Over the next six months the group is on track to launch cash equities for institutional clients, and OTC options and listed futures across our various platforms which will allow our clients better opportunities to trade and hedge existing portfolio positions. Invest UK will be launching SIPPs and mutual funds, whilst Invest Singapore will initially offer equities, and ETFs."