IG Group FY profits fall amid reduced trading activity

25th Jul 2024 09:23

(Sharecast News) - IG Group reported a drop in full-year profits and revenue on Thursday, pointing to reduced trading activity.

In the year to the end of May 2024, adjusted pre-tax profit declined 7% to £456.3m, with total revenue down 3% to £987.3m.

Net trading revenue was 10% lower at £844.9m, due to reduced trading activity. IG said weaker OTC derivatives revenue was partly offset by growth in exchange-traded derivatives, with stock trading and investments revenue flat.

Meanwhile, net interest income rose to £142.4m from £80.8m, reflecting higher interest rates.

Chief executive Breon Corcoran, who joined the group at the end of January, said: "IG has a sound position in large, growing markets, underpinned by an established brand and a loyal, high-value client base. However, I've also identified areas requiring change. We have lots of work to do to take IG to the next level and address the challenges we face.

"We operate in a competitive industry landscape that is changing rapidly. We must move at pace to get closer to our customers, give them the products they want more quickly, enhance efficiency, and add scale to win. My initial priorities are to increase client centricity, accelerate product velocity and develop our culture to increase ownership and accountability."