Monex Europe Holdings Reports £9.98M Profit in 2022

Monday, 09/10/2023 | 07:07 GMT by Damian Chmiel

The British division of Monex made significant improvements last year.

After suffering a loss of £3.45 million in 2021, the company turned it into a profit in 2022.

Based in the UK and offering foreign exchange services to commercial and corporate clients, Monex Europe Holdings Limited saw a substantial increase in its net trading income for 2022. The company successfully turned its 2021 net loss into a profit of nearly £10 million.

Monex Reports Nearly 50% Surge in Trading Income

Monex Europe Holdings Limited reported an increase of 46% in net trading income, growing from £54.28 million in 2021 to £79.68 million last year. As a result, the gross profit stood at £76.27 million, with a net profit positioned at approximately £9.98 million.

This represents a huge leap compared to 2021 when the company failed to achieve profitability, reporting a loss of £3.45 million. Administrative costs were the main factor contributing to the 2021 loss, which exceeded the net trading income. Although in 2022, these costs increased 23% to £70 million, they did not consume all the revenue.

"2022 proved to be a stronger year in the financial service sector, throughout the European Union, North America, and Asia, as the sectors showed signs of recovery from the COVID-19 pandemic and Brexit . As a result, the group generated a profit," the company commented in the filing.

Monex Europe Limited, a subsidiary of Monex Europe Holdings Limited, was not as fortunate. Recently spun off to serve clients in Europe, its net trading income was £23.5 million, a decrease of 10.6% compared to the previous year. The net profit was £2.6 million, falling by over 60% year-over-year.

FX Industry Annual Results Season

Many companies operating in the foreign exchange industry have published their financial reports recently. Among them is retail trading solutions provider NAGA Group. NAGA's preliminary EBITDA for the first three quarters of 2023 was €4.2 million, starkly contrasting to the €4.2 million loss reported for the same period last year. The company generated €28.4 million in revenue from its brokerage business, resulting in an EBITDA ratio of around 15%.

London and UAE-based retail broker FxPro also published a comprehensive financial report for 2022, revealing an increase in revenue but a deepening net loss of £614,558. However, the company reported achieving its goals, which included an increase in notional volume traded and greater retail customer activity.

Despite significantly higher revenues, rising operational costs in 2022 led to a noticeable net loss for operators of other popular brokerage brands, such as XM and Trading.com. Trading Point of Financial Instruments UK Limited, the mother company behind the trading brands, reported a net loss of £1.09 million last year.