TP ICAP Posts Slight Uptick in 2019 Revenues, Global Broking Drops

Global Broking revenue fell by 1 percent year-on-year.

TP ICAP, an interdealer broker, has published its financial results for the year ended on the 31st of December, 2019, with overall revenue for the Group increasing slightly, despite a decline in Global Broking revenue.

Despite the mixed geopolitical environment, among other factors that weighed down financial firms throughout 2019, TP ICAP reported a Group revenue of £1.833 billion. This represents a yearly growth of 4 percent or 1 percent at constant currency.

During the 12 months, the interdealer broker posted an operating profit of £279 million, which is a slight improvement from the £276 million operating profit the company achieved in 2018.

TP ICAP Global Broking revenue falls

The firm’s Global Broking revenue, however, fell by 1 percent, or 3 percent at constant currency, dragged down by weaker Credit and Equities business. This was mostly mitigated by resilient Rates, the report showed.

Energy and Commodities revenue posted a 15 percent growth year-on-year, with strong organic growth, favorable market conditions, and the Axiom acquisition, all contributing to the reliable performance.

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TP ICAP’s Institutional Services marked one of the best yearly revenue increases, coming in at 23 per cent growth. Data and Analytics revenue was also up by 15 percent in 2019 when measured against the previous year.

In addition to the company’s operational performance, the financial services firm noted a number of strategic highlights in its report, such as increased earnings diversification through growth in non-broking businesses and the development of a new executive leadership structure to streamline revenue generation.

2019: an important inflection point

Commenting on the results, Nicolas Breteau, Chief Executive of TP ICAP plc, said in the statement: “These results mark an important inflexion point for TP ICAP. We have completed the three-year integration programme of the ICAP business that we acquired at the end of 2016 and achieved the planned commercial and cost synergies, emerging as the world’s leading inter-dealer broker.”

“We also spent last year strengthening our management team, enhancing our risk framework and developing our growth strategy based on aggregation, electronification and diversification. We have a powerful market position in Global Broking and three exciting growth businesses which we aim to develop strongly in the coming years.”

“The overall macroeconomic backdrop remains uncertain driven largely by Covid-19, global growth and ongoing Brexit negotiations. While this environment impacts our clients’ activity,  the resulting volatility also creates market opportunities that gives us confidence for the future.”

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