OANDA European Operation Reported Increase in Profitability in 2017

Vatsa Narasimha, President and Chief Executive Officer, OANDA Corporation
Vatsa Narasimha, President and Chief Executive Officer, OANDA Corporation

Increase in profit contributed by efficient risk management, cost control and uptick in trading volume

The US-based multi-asset trading service provider, OANDA has released its financial statements for its European subsidiary, OANDA Europe Ltd., for the year ending December 31st, 2017. During the financial year, the firm managed to meet its key objective of increasing profitability in 2017.

In the 12 months period, the company had a turnover of £15.7 million, which is 6 per cent less than 2016 levels, from £16.6 million. Despite the lower turnover, the company posted a net profit of £2.1 million ($2.7 million), which is an increase of 40 per cent from 2016 level, from £1.3 million. The increase in profit was contributed by efficient risk management and cost control as well as a 21 per cent increase in trading volume, mostly driven by high-value customers which contributed to the bottom line.

In its financial report, the broker also highlighted its achievements for 2017, which included being fully compliant with all MiFID II requirements, complying with all the deadlines. It’s better and new customer acquisition and targeting model played a key role in its success as it helped to efficiently target high-value active clients, which resulted in an uptick in volume and boosted profits. During the year, OANDA managed to control its expenses by 13 per cent Y-o-Y from £15.2 million in 2016 down to £13.3 million in 2017.

Looking ahead to 2018, OANDA Europe wants to move forward with the aim to increase profitability from trading operations. It further aims to enhance product offering with new platform features and increase its client base in the EMEA region and improve the competitiveness.

GFM Solutions GroupOANDA Acquires GFM Solutions Group

In an interview with Finance Magnates, OANDA CEO Vatsa Narasimha has revealed that it has acquired risk management solution provider GFM Solutions Group.

GFM is a risk management and financial reporting company and its software allows a host of risk management solutions including exposure measurement and management, hedge accounting and financial reporting, financial instrument valuation and regulatory compliance and risk management policy implementation.

Narashima commented on the acquisition: “The acquisition of GFM complements our existing currency data offering by providing a comprehensive analytics solution that enables corporate clients to effectively manage their currency exposure.”

GFM’s Managing Director, Charles Brobst, has been appointed as OANDA’s Managing Director for Analytics division as a result of acquistion. Commenting on the development, Charles Brobst said:

“OANDA’s currency data is widely regarded as the gold standard, so it made perfect sense for the GFM team to join forces in order to help clients reduce currency exposure and mitigate risk.”

OANDA also announced that it will continue to look for acquistion opportunities over the next 18 months as a part of its ownership change to CVC Capital Partners which will help it grow inorganically.