Gain Capital (NYSE:GCAP), the second-largest US forex broker in terms of client assets, reported that its second quarter net income was $10.8 million, up from a $7.1 million loss in the second quarter of 2015. When compared to the previous quarter with a net income of $8.4 million, the Q2 2016 metric rose 28.6%. The overall results for the first half of this year also were favorable revealing a net income of $19.2 million, against a loss of $1.7 million in H1 2015.
The net revenue of Gain Capital in the second quarter of 2016 was $108.3 million and the overall net revenue for the first half of the year was $223.8 million. In comparison to last year’s second quarter, the brokerage posted a 3% decline, while the H1 net revenue rose 9.5%.
“Our second quarter and first half results reflect the benefits of GAIN’s diversification strategy and successful execution of expense management initiatives,” commented Glenn Stevens, CEO of GAIN Capital.
In Q2 2016, the retail segment of Gain Capital generated a net revenue of $89.4 million and brought a segment profit of $31.5 million, reflecting a margin of 35%. According to the previous results, the Q2 net revenue dropped 7.5%. For the trailing twelve months ended June 30, 2016, the retail segment generated net revenue of $376.7 million and segment profit of $126.6 million, reflecting a margin of 34%.
The net revenue of the institutional segment, however, rose 5.6% to $7.5 million and brought a segment profit of $1.4 million, reflecting a margin of 20%. For the trailing twelve months ended June 30, 2016, the institutional segment generated net revenue of $30.6 million and segment profit of $7.3 million, reflecting a margin of 24%.
Along with its Q2 and H1 results, Gain Capital reported that in July Over-the-counter (OTC) trading volume dropped both over the month and over the year, while the institutional (ECN) trading volumes posted a monthly decrease and an annual increase.
Gain Capital Group was established in 2003 and went public on the NYSE in 2010. The company serves retail and institutional clients under the trading brands Forex.com, City Index, GTX, and Gain Capital. It is active in North America, Europe and the Asia Pacific regions. The broker offers trading in forex, commodities, and global equities. Its largest retail forex broker, Forex.com, also offers white label solutions for other forex brokers, operating throughout the world.