ANZ Share Investing client base transitions to CMC
16th September 2021
CMC Markets Plc
ANZ's Share Investing client base transitions to CMC
CMC Markets Plc ("CMC" or the "Group"), a leading global provider of online trading and institutional ("B2B") platform solutions, today announces the transition of Australia and New Zealand Banking Group Limited's ("ANZ") Share Investing client base to CMC for a sum of AUD$25m (the "Transaction").
The Transaction involves the transition of over 500,000 ANZ Share Investing clients, with total assets in excess of AUD$45 billion. The AUD$25m consideration will be funded from the Group's existing cash resources. The Transaction is another significant step in the ongoing diversification of the Group's global business and in the Australian market at a time when we are seeing elevated demand for retail stockbroking services.
With this Transaction, the existing white label technology partnership, which has seen CMC's trading technology power ANZ's share investing business since 2018, will come to an end. The existing white label partnership generated £39.5 million in net trading revenue for CMC in FY 2021. T he CMC platform will offer clients a wide range of additional benefits currently unavailable with ANZ. These include access to enhanced, market-leading mobile apps and complementary education tools and resources. Following transition, ANZ Share Investing clients will benefit from lower brokerage charges across four major international markets and the local Australian market and will give CMC the opportunity to drive greater value from its enlarged client base.
The Transaction further establishes CMC as a financial technology leader in the Australian market and removes the uncertainty around the finite term of the existing ANZ white label partnership. The Transaction is expected to take 12 to 18 months to fully transition clients.
Lord Cruddas, Chief Executive Officer, commented:
"This transaction is part of our strategy to create a non-leveraged investment platform and forms part of our longer-term goals for the company. As this new venture expands and develops, we will be able to offer more products, including third party funds and tax wrappers, directly to our clients. This is a further step towards the diversification of CMC's earnings and complements the launch of our new investment platform in the UK, aligning our business strategy across our core geographies."
"I would like to take this opportunity to extend a warm welcome to our new share investing clients, and also thank our colleagues at ANZ Bank, with whom we have worked closely over the last three years to put clients' needs first."
Forward looking statements
This trading update may include statements that are forward looking in nature. Forward looking statements involve known and unknown risks, assumptions, uncertainties, and other factors which may cause the actual results, performance, or achievements of the Group to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements. Except as required by the Listing Rules and applicable law, the Group undertakes no obligation to update, revise or change any forward looking statements to reflect events or developments occurring after the date such statements are published.
Enquiries
CMC Markets Plc
James Cartwright, Investor Relations investor.relations@cmcmarkets.com
Euan Marshall, Chief Financial Officer
Matthew Lewis, Head of Asia Pacific and Canada
Camarco +44 (0) 20 3757 4994
Geoffrey Pelham-Lane
Jennifer Renwick
Notes to Editors
CMC Markets plc ("CMC"), whose shares are listed on the London Stock Exchange under the ticker CMCX (LEI: 213800VB75KAZBFH5U07), was established in 1989 and is now one of the world's leading online financial trading businesses. The Group serves retail and institutional clients through regulated offices and branches in 12 countries, with a significant presence in the UK, Australia, Germany and Singapore. CMC Markets offers an award-winning, online and mobile trading platform, enabling clients to trade up to 10,000 financial instruments across shares, indices, foreign currencies, commodities and treasuries through contracts for difference ("CFDs"), financial spread bets (in the UK and Ireland only) and, in Australia, access stockbroking services. More information is available at http://www.cmcmarkets.com/group/
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