Revolut and CMC Markets partnership up and running
The partnership between CMC Markets and Revolut had already kicked off, with reports that some Revolut clients are already live and trading.
Last month, CMC Markets announced its first ever fintech partnership, creating a user interface in Revolut’s app able to do trading, pricing, account systems, execution, and clearing provided by CMC.
Additionally, a scheme allowed Revolut customers to buy and sell corporate and government bonds across Europe for the first time through CMC.
Now, the group said in a stock exchange announcement that the initial onboarding of Revolut clients had commenced, with some already using the new features.
“This exciting and important partnership reinforces CMC’s position as a market leader and innovator in the B2B fintech space through technology and our API ecosystem,” the group added.
Further details are set to be released in CMC’s half-year results in November.
CMC Markets said so far in the year, it had traded “in line with management’s expectations”, with “good progress” being made on its institutional and B2B strategy and an “encouraging pipeline of potential opportunities”.
Since the group only announced its full-year results last month, it did not provide detailed figures, but said that guidance had remained unchanged that this year would see net operating income of between £320m to £360m, with costs at about £225m.
“As outlined at our full year announcement, management remains focused on opportunities to drive additional cost efficiencies and deliver margin expansion, particularly in the institutional and B2B space, where we see growing profit margins,” the group said.
Analysts reacted positively to the announcement, with hopes that the business will continue to perform well as new opportunities emerge.
“CMC’s share price has been very strong, outperforming the FTSE All Share by about 100 per cent over the past year, driven by a series of positive EPS revisions, reversing steep downgrades in the prior year,” said Shore Capital analyst Vivek Raja.
“We believe the potential profitability of CMC’s core business is underappreciated by the market, and has been masked by elevated investment,” added RBC analysts Ben Bathurst and Jude Neanor.