TP Icap enjoys revenue boost from boking division

TP Icap’s earnings were supported by a strong performance in global brokerage against a background of volatility in the stock and currency markets.

In the nine months to 30 September, the inter-dealer broker’s total group revenue rose 10 percent from the same period a year earlier to £1.59 billion.

The company said it benefited from favorable market conditions in the global brokerage segment, particularly in fees, the largest and most profitable asset class.

Global brokerage revenues were up 9 percent, with all asset classes generating high single-digit to double-digit growth.

“This performance underscores the strength of the franchise, which is well positioned as central banks continue to withdraw liquidity and raise interest rates,” TP Icap said.

The strengthening US dollar continued to be a “meaningful” tailwind, the group added, with about 60 percent of its sales and 40 percent of its costs in dollars.

In the energy and raw materials branch, sales fell by 3 percent in the period in a ‘challenging’ European gas and electricity market.

The London-based company said: “Significant price increases and increased foreign exchange margin requirements resulted in shrinking liquidity and low market activity.”

In the third quarter, group revenues rose 5 percent from the same period a year earlier to £508 million, while global brokerage revenues were 12 percent higher.

The group said it continued to act “in line with expectations.”

TP Icap Shares fell today and fell 2.34 percent or 4.40p to 179.70p this afternoon. The group’s share price has risen by more than 14 percent in the past year.