TP ICAP Posts 17% YoY Uptick in Q1 2020 Revenues

A surge in trading activity driven by coronavirus has provided a boost for revenues.

TP ICAP plc has published a trading update for the three months ended on the 31st of March 2020 this Wednesday, in which the interdealer broker revealed that it achieved a 17 per cent increase in revenues.

During the three month period, TP ICAP achieved revenue of £547 million. Not only is this 17 per cent higher than the £469 million revenue reported for the equivalent period last year, but it is also higher by 17 per cent on a constant currency basis.

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According to the trading update from the company, this increase in revenue was due to higher client volumes which were driven by volatile market conditions caused by the COVID-19 pandemic.

Breaking down revenues by division, Global Broking revenues increased by 10 per cent on a yearly comparison, with all asset classes posting strong revenue growth, TP ICAP said. In particular, rates and equities showed the strongest performance.

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Energy and Commodities revenue was also strong across all products, with revenue increasing by 26 per cent and Institutional Services revenue climbed by 85 per cent.

TP ICAP maintains prior 2020 outlook

Although the London-headquartered company has performed well during the first three months of the year, TP ICAP has said that it is not willing to update its full-year guidance at this point and therefore, its forecast of low single-digit revenue remains unchanged.

This is because the Group believes it is too early to fully assess the impact of the coronavirus crisis on both TP ICAP and its customers, the company said in its statement. Furthermore, the Group has seen trading activity in April return to more normal levels, which is in line with the company’s full-year guidance.

Nicolas Breteau, tp icap ceo
Nicolas Breteau, CEO of TP ICAP
Source: TP ICAP

Commenting on the company’s performance, Nicolas Breteau, Chief Executive Officer said in the statement: “Thanks to the support of our staff and our clients, our Group, as a systemically important market infrastructure provider, has been able to continue to support and provide the essential liquidity to keep the wholesale financial and commodities markets in which we operate open and functioning in an orderly manner.”

“Today’s strong trading update demonstrates not only the resilience of our business and that critical role we play as part of the global financial infrastructure, but also the professionalism and dedication of our colleagues. We have been tested to the extreme and have responded powerfully. Our Group has performed strongly in Q1, but it is too early to fully assess the impact of the COVID-19 pandemic to our full year outlook. We will use everything we have learned in the past few weeks to strengthen our business further as the financial world slowly returns to more normal conditions and in the meantime we approach the remainder of 2020 with confidence.”

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