The world’s largest inter-dealer broker TP Icap (TCAP) reported a 17% jump in third-quarter revenue to £478m as it benefited from increased trading activity due to global trade frictions and Brexit worries, pushing the shares up 6% to a new 12-month high of 366p.
Chief executive Nicolas Breteau commented, ‘today's strong trading update demonstrates that TP ICAP's trading portfolio is well placed to capitalise on volatile macro market conditions’.
The company stayed cautious on the full-year, expecting current geopolitical uncertainties to have an impact on the final quarter’s trading volumes, and stuck to its current guidance of low-single-digit growth in constant currency revenues.
Global broking, which represents two-thirds of the business, saw revenues grow by 10% to £334m for the three months ended 30 September, although they were 1% lower over first nine months reflecting weaker performance in Credit and Equities business.
Energy and commodities trading, which makes up a fifth of sales, was very strong up 24% in the quarter and 13% year-to-date as a result of acquisitions and good trading conditions.
Institutional services and data analytics are still small in relation to the other divisions but grew fast, up 38% and 9% respectively, reflecting increased hires and the launch of new products.
The shares, up 20% so far this year, continue to recover from last summer’s profit warning when the company reported tough trading due to increased European regulatory burdens and rising costs.
Despite hitting a new 12-month high today the shares are still around 30% below their January 2018 peak of 539p.
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