TP ICAP revenue surges after first quarter volatility
Interdealer broker TP ICAP’s revenue rose by almost a fifth in the first quarter, as it benefited from the coronavirus-induced market turbulence.
Revenue of £547m was 17 per cent higher than the £469m reported for the equivalent period last year. The broker said the growth reflected “higher client volumes due to the volatile market conditions” caused by coronavirus.
The firm brings together buyers and sellers in financial, energy and commodities markets and benefits when volatility and transaction volumes are higher.
It was helped by 10 per cent revenue growth in TP ICAP’s global broking division, with all asset classes demonstrating strong revenue growth. Rates and equities showed particular strength capitalising on the higher volumes.
TP ICAP’s energy and commodities division pushed higher, with revenue growth of 26 per cent in the period to £118m.
Despite a strong performance in the first quarter, the group remains cautious and has maintained its full-year outlook of low single-digit revenue growth.
Trading activity in April 2020 has returned to “more normal levels” and is in line with TP ICAP’s full year guidance.
“The group believes that it is too early to fully assess the impact of the Covid-19 pandemic on TP ICAP and its customers. We will continue to monitor the impact on the group through the remainder of the year,” TP ICAP said in a statement.
Chief executive Nicolas Breteau said: “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.”