Numis warns that amid the economic turmoil, stock markets will remain “challenging” as the sell-off in shares hurts the investment bank’s earnings
- Numis saw earnings from equities decline in three months ended June 30, updates show
- Global equities face volatility amid economic turmoil and the war in Ukraine
Numis has said equity markets are likely to remain “challenging” as it released a trading update today.
Global equity markets are under heavy selling pressure amid deteriorating economic sentiment, inflationary pressures and the war in Ukraine eating away at the investment bank’s quarterly earnings.
Numis posted revenue of £40m in the three months to June 30, compared with around £50m a year ago.
Outlook: Numis has said equity markets will remain “challenging”.
Numis said its most recent sales figures “came ahead of the first half and reflect a strong improvement over second quarter sales performance.”
A “conducive” environment for mergers and acquisitions helped boost the group’s earnings during the period, it said.
However, she added: “Equity returns were slightly below the first half run rate, reflecting cautious investor sentiment and market declines over the period, particularly among UK small and mid caps.
‘Despite these tougher market conditions, our trading performance in Q3 was marginally better than the H1 run rate, which helped offset a quieter period for commissions.’
Speaking on capital markets, the investment bank said, ‘Capital market volumes remain subdued and while we saw some recovery in activity in the third quarter, we expect macro concerns to limit transaction volumes in the near term.’
The group also said its Dublin office had received regulatory approval from the Central Bank of Ireland, adding that it expects to start trading in the last quarter.
Numis said: ‘This broadens our capital markets reach to non-UK issuers; expand our leading equity platform to European institutional investors seeking exposure to UK equities; and continue to benefit from working with high-growth private companies seeking growth capital.’
The company said its performance remained in line with market forecasts for the full year.
Numis Shares rose 4.15 per cent or 10.38p to 260.38p this afternoon. The group’s share price has fallen by almost 30 percent in the past year.
Numis warns that stock markets will remain “challenging”.
Source link Numis warns that stock markets will remain “challenging”.