TP ICAP profit up 50%; warns of uncertain economic backdrop

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Inter-dealer broker TP ICAP booked a 50% rise in annual profit after it completed a merger integration programme, though it warned of an uncertain macroeconomic backdrop as the coronavirus spreads.

Pre-tax profit for the year through December increased to £93m, up from £62m on-year.

Revenue rose 4% to £1.83bn, but by a more modest 1% on a constant currency basis.

Broking revenue slipped 1% but was offset by a rise in energy and commodities, institutional services and data and analysts revenue.

The company declared a final dividend of 11.25p per share.

'These results mark an important inflexion point for TP ICAP,' chief executive Nicolas Breteau, said.

'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.'

'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.'