Coronavirus provides ‘market opportunities’ for TP ICAP
TP ICAP’s full year earnings were in line with expectations today as the firm reported that coronavirus uncertainty could create more opportunities going forward.
The world’s largest inter-dealer broker released its full year results today, recording £1.83bn in group revenue – a four per cent increase.
This translated into operating profit of £279m, which was just £3m more than in 2018.
TP ICAP chief executive Nicolas Breteau said in a statement that uncertainty driven by “Covid-19, global growth and ongoing Brexit negotiations” will create “market opportunities” going forward.
Market volatility is a good sign for inter-dealer brokers as it generally results in more transactions.
“The overall macroeconomic backdrop remains uncertain driven largely by Covid-19, global growth and ongoing Brexit negotiations,” Breteau said.
“While this environment impacts our clients’ activity, the resulting volatility also creates market opportunities that gives us confidence for the future.”
The broker’s results for 2019 were underpinned by 15 per cent growth in energies and commodities revenue and 23 per cent growth in institutional services revenue.
However, it also saw its largest income stream of global brokerage revenue dip by one per cent.
Breteau said 2019 marked an “inflection 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,” he said.
“We also spent last year strengthening our management team, enhancing our risk framework and developing our growth strategy based on aggregation, electronification and diversification.”
TP ICAP’s shares were up one per cent to 358p this morning.