Fintech trading platform Plus500 puts $100 million back into shareholders’ pockets after big year

Fintech trading platform Plus500 topped market expectations for the year today, announcing it would put 82 million pounds ($100 million) back into shareholders’ pockets after cashing in on “higher value” clients last year.

In its preliminary full-year results, the London-listed Israeli firm announced it would start a new $70 million buyback program along with a $30 million full-year dividend, after profits before equity rose 17 percent to $455.8 million.

Chief executive David Zruia hailed an “excellent set of results” for the firm and said it “continues to outperform” the market.

“Our performance was again driven by Plus500’s unique proprietary technology stack proposition, which underpins our ongoing ability to attract and retain higher value clients over the long term,” he added.

Plus500 allows amateur traders to bet on stocks and offers online trading services in contracts for difference, stock trading, futures trading.

It was among a number of platforms to enjoy a boom through the pandemic as retail investors looked to tap into volatile markets. But unlike some of its peers, it has maintained its growth and reported bumper results over the past two years.

The firm said it had been boosted by “higher-value long-term customers” in the past 12 months as customer deposits rose to $2.3 billion – up from $2.1 billion last year – while average deposits grew to a record high of around 8 000 dollars.

It now looks to ramp up global expansion and is eyeing further growth in the US, Zruia said this morning.

“We are in an extremely exciting strategic and commercial position, with several potential growth opportunities available, particularly in the US futures market, which will continue to drive our growth as a global multi-asset fintech group,” he said.

Analysts at Liberum said today’s results “confirm the cash-generating nature of the business model” which drove “customer acquisition and retention”.

“Not only do these cash flows support high shareholder payouts (cumulative $1.7 billion since IPO), they also fund investment in the group’s growth and diversification strategy as it builds out a multi-asset fintech platform,” it added, recommending clients to buy the Share.