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TP ICAP sees revenue grow as global broking offsets poor commodities

1st Nov 2022 11:40

(Alliance News) - TP ICAP Group PLC on Tuesday reported increased revenue in its third quarter as Global Broking continued to drive revenue growth in the period.

In a trading update on the three months that ended September 30, the London-based financial services firm reported quarterly revenue of GBP508 million, up 5% compared to the same period last year.

The strongest division was Global Broking revenue, which was up 12% in constant currency terms, with all asset classes generating high single digit to double digit growth.

Energy & Commodities revenue declined by 12% while Agency Execution - a division which provides trading services for a broad range of asset classes - fell 1%.

In the year to date TP ICAP is trading 10% ahead of the same period last year, in constant currency terms, with total revenue at GBP1.59 billion. In reported currency terms the company reported 15% growth.

Global Broking revenue was up 9% in the period in constant currency. The company said it is "well positioned as Central Banks continue to withdraw liquidity and increase interest rates."

Energy & Commodities revenue has declined 3% over the period. The company said that "significant price rises and increased exchange margin requirements resulted in liquidity contracting and low levels of market activity."

Agency Execution was up 34% in the year to date despite a 9% fall in Liquidnet revenue, the company's electronic trading network. Parameta Solutions, the post trade solutions division, and Data & Analytics reported 6% and 9% revenue growth respectively compared to last year.

The group, as a whole, continues to trade "in line with expectations".

Shares in TP ICAP were trading 3.4% lower at 177.80 pence each in London on Tuesday morning.

By Chris Dorrell; [email protected]

Copyright 2022 Alliance News Limited. All Rights Reserved.


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