IG Group makes progress despite ‘regulatory scrutiny’
IG Group chairman Andy Green has paid tribute to the company’s performance in the 2018 financial year, saying that it was able to overcome “ongoing regulatory uncertainty” to post year-on-year growth.
Green said the contract for difference (CFD) and spread betting firm has faced a “challenging” year, during which various new rules and regulations were set out for companies in this sector.
In December, the European Securities and Markets Authority, the EU’s financial regulator, announced a crackdown on binary options and CFDs.
This was followed by confirmation that the UK Financial Conduct Authority was to review the current process for the provision and distribution of CFD products.
However, in spite of these changes, IG Group has today (Monday) posted an impressive set of financial results for the past year.
Revenue at the firm was up by 16% year-on-year to £569m (€636.5m/$727.1m), while operating profit also increased 32% to £281.1m.
Reflecting on the results, Green said the performance is all the more impressive, considering that IG Group had to contend with a “backdrop of intense regulatory scrutiny”.
“The past year has been both challenging and successful for IG,” Green said. “I am proud of the operational performance of the business this year, and of the strategic progress we have made.
“In an industry that has been tainted by the poor practices of some providers, IG has maintained its focus on championing the client and treating our clients fairly at all times.
“The last 18 months have been a challenging period in our company, but our operating and financial performance has been strong.”
Although Green issued a warning that revenue in the 2019 financial year is likely to be lower due to regulatory changes in the UK and EU, the company expects to return to growth after this period.
Green said: “In the medium term, I believe that the initiatives we are putting in place now, coupled with our people’s commitment to innovation and championing the client, will see IG extend its industry-leading position and become even stronger.”