The Irish arm of US investment banking giant Cantor Fitzgerald has posted an after-tax profit of just over €8m for 2013.
Cantor entered the Irish market in late-2012 via its takeover of Dublin-based stockbroking firm Dolmen. The latest figures show the Irish business grew revenues by 34% last year. The after-tax profit figure included an exceptional profit from Cantor’s share of the payout to six guarantors of the Irish Stock Exchange when it demutualised last year.
Cantor is now one of the ISE’s main shareholders, along with Davy, Goodbody Stockbrokers, Investec Bank and leading private client broker Campbell O’Connor.
According to Ronan Reid, chief executive of the company’s Irish division: “Since acquisition, Cantor Fitzgerald Ireland has continued to grow the Retail Financial Services and Institutional Bond divisions and made additional hires into the Institutional Equity and Investment Banking divisions.”
He added that the company returned to operating profitability despite “significant investment” in technology and infrastructure and has traded profitably in the first 10 months of 2014.
Meanwhile, Cantor Fitzgerald’s global head, Howard Lutnick has told US financial media that investors should expect increased market volatility in the aftermath of the US Federal Reserve ending its bond-buying programme in an age of long-term low interest rates.
The US Central Bank announced the end of its stimulus programme of quantitative easing (QE), earlier this week. It had been purchasing $85bn per month in bonds, but began to reduce that at the end of last year.
“The Fed buying $85bn a month and just doing nothing with it crushed volatility from the system. So the fact that the Fed stopped has got to increase volatility,” Mr Lutnick told CNBC.
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