TP ICAP Sees Rising Profits as Global Broking Posts a 5% Rise in Revenues

The merger between Tullett Prebon and ICAP is still excepted to yield £100m in synergies

TP ICAP has reported on the outcome of the first four months of 2018 before the annual shareholder meeting scheduled for later today. The trading update issued by the company via the London Stock Exchange’s RNS shows that the firm generated a total of £601 million ($815 million) of revenue between the 1st of January and the 30th of April 2018.

The figure was 3% higher than the same period a year ago, reflecting a performance which was in line with the full year guidance TP ICAP issued in March. Trading conditions were dominated by increased volatility in equities with improved conditions in rates products, which was partially offset by a poor credit and power markets.

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Global Broking

The Global Broking division of TP ICAP posted a year-on-year rise in revenues totaling 5 percent to £442 million ($600 million). The performance of the unit was driven by a solid performance in the rates business, which was up 8 percent, and the equities business, which posted an increase of 22 percent following the spike of volatility at the beginning of February.

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Energy & commodities at TP ICAP underperformed, dropping 4 percent to £111 million ($150 million). The lone performer in this area was oil, which posted gains during the period amid geopolitical tensions.

The institutional services division’s performance was lower by 7 percent to £10 million, while revenues from data & analytics were up 4 percent to £36m. Both business divisions are going through a period of restructuring in line with the strategic goals of TP ICAP.

The CEO of TP ICAP, John Phizackerley, commented on the performance of the company: “The integration of TP ICAP remains our number one priority, and we remain firmly on track to deliver our target of £100m of synergies. Post the successful delivery of readiness for MIFID II we are now moving into large IT system migration, as well as increasing our workforce in Belfast. New combined offices are shortly scheduled to open in London and New York.”

“In markets, the global rates environment continues to be increasingly constructive, and bouts of volatility seem likely to continue. We also continue to progress our plans for growth in Data & Analytics, Institutional Services, and Energy & Commodities,” Phizackerley elaborated.

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