IG Group shows how it stomached the Swiss Franc shock
The figures
IG said the Swiss franc shock reduced revenue by £11.8m to £91.8m, down 5.1 per cent from the same period last year. However, excluding this, underlying revenue rose 7.1 per cent to £103.6m.
It said the Swiss franc turmoil resulted in client debts of £18.4m, however it expects to provide for most of these.
"Although half of the debtor accounts have now been settled, this relates to only a small proportion of the original £18.4 million; the majority of remaining debtors may not be in a financial position to clear their debt in full," it said.
Why it's interesting
Today's statement reveals the full fall-out from the Swiss currency chaos which shook markets earlier this year.
Brokers were bruised after the Swiss National Bank scrapped its four-year old currency ceiling in mid-January, sending the Swissie as much as 39 per cent higher against the euro, before settling 16 per cent up on the day.
IG Group's share price fell as much as 6.7 per cent to £6.94 in late-afternoon trade on the day. At the time it said clients' "positions were closed at a more beneficial level than the company was able to close its entire corresponding hedge due to the market dislocation".
What IG Group said
The performance in the third quarter and a good start to the final quarter positions IG well for the full year.
The company continues to make good progress on its strategic initiatives, as it diversifies both geographically and through the offering of additional products, taking further steps towards its aim to become the default choice for active traders globally.
In short
The Swiss currency crisis was a bitter pill to swallow, nonetheless IG Group remains positive for the full year.