ASB Bank & CMC Markets form strategic partnership

CMC Markets Plc

01 November 2024

 

01 November 2024

CMC MARKETS PLC

("CMC" the "Group" or the "Company")

Partnership with ASB Bank  

ASB Bank and CMC Markets form strategic white label partnership 

in New Zealand

CMC Markets ("CMC") has signed an agreement to enter into a long-term strategic partnership with major New Zealand financial institution ASB Bank ("ASB"). 

Following an integration period, CMC will provide ASB clients with access to market-leading technology and execution via an ASB-branded web and mobile platform, including full integration with ASB Bank's current technological offering. Integration is expected to take between 12 and 18 months, with the associated costs expected to be largely capitalised and revenue upside proving meaningful in the context of our Invest business. On an ongoing basis, the cost impact is expected to be incremental as the Group leverages existing scale to service the business.

ASB customers will receive CMC's award winning mobile and desktop trading technology, as well as access to over 15 international markets, extensive market research and tax reporting tools.

CMC Markets Stockbroking is Australia's second largest stockbroker with over A$70 billion in AUA and in excess of one million share trading accounts. As part of this agreement there is a requirement for CMC to become a full trading, settling and clearing participant of NZX, the New Zealand stock exchange, underscoring our long-term commitment to the ANZ region.

The transaction is not subject to any regulatory or shareholder approval.

Overview of ASB Bank 

ASB Bank is one of the largest banks in New Zealand with circa 1.5 million customers.

CMC Markets CEO, Lord Peter Cruddas, commented:

"We are delighted to be announcing this partnership with ASB Bank to deliver our market-leading white label technology. There is no higher endorsement of our company than when a major bank or financial institution trusts our technology to deliver a service to their valued clients and this agreement marks further progress in our ongoing diversification strategy, as our B2B technology and institutional-first approach continue to unlock global opportunities. We look forward to working with ASB Bank to deliver the best online share trading service in New Zealand."

ASB Executive General Manager of Corporate Banking, Jonathan Oram, commented:

"We are proud of our online share trading platform and the fact that we are the only bank in New Zealand to offer a share broking service, which complements our other investment products and services including Wealth advisory and KiwiSaver. We are focused on accelerating progress for all New Zealanders and, by investing in this partnership with CMC, we will develop our offering even further for ASB customers looking to buy or sell shares and other market listed securities." 

Forthcoming announcement dates:

21 November 2024                                                      H1 2025 Interim Results

Enquiries

CMC Markets Plc                                                                              

Albert Soleiman, Chief Financial Officer                      [e-mail]

Camarco                                                                                            

Geoffrey Pelham-Lane                                                [phone]

Jennifer Renwick                                                         [phone]

Alex Campbell                                                             [phone]

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.

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 Company 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 over 12,000 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, Singapore and the UK, access stockbroking services. More information is available at http://www.cmcmarketsplc.com.

 

END