TP ICAP has seen its revenues increase by 1% in H1 2023, from £1 billion to £1.01 billion, following a comparatively strong performance in H1 2022 last year.
The firm’s global broking division revenues in H1 2023 were down 1% against H1 2022, from £663 million to £656 million. The firm’s Liquidnet division revenue dropped 6% in H1 2023 against H1 2022, despite increasing adoption, which the firm attributed to ongoing “challenging market conditions” affecting key market segments in equities.
TP ICAP CEO Nicolas Breteau said the uplift in profit and increased earnings before interest and taxes (EBIT) margin, from 9.2% in H1 2022 to 9.6% in H1 2023, was down to a focus on “productivity, contribution and tight cost management”.
Breteau also highlighted the success of subsidiaries; the rollout of Fusion, the firm’s electronic market data analytics, news and market commentary portal, has seen increasing client adoption (now live on 44% of in-scope global broking desks), while Liquidnet now has two major banks connected to its dealer-to-client credit proposition, with a third “in the final stages”.
With TP ICAP’s credit division revenues down 3% in H1 2023 against H1 2022, from £62 million to £60 million, the firm continued to invest in the division to capitalise on the shift to electronic trading, TP ICAP said.
Additionally, cash equities revenue was down 22%, in line with a global decline in block market volumes, Liuqidnet reported. This was mitigated, the firm says, by “strong growth” in the rest of the Liquidnet division, in particular the firm’s Relative Value business, which saw revenue up 22%.
TP ICAP’s profit before tax increased from £72 million (H1 2022) to £91 million (H123) and profit for the period increased by £2 million to £66 million.
The firm’s data, analytics and post-trade offering, Parameta Solutions, saw its revenue increase by 5% in H1 2023 against H1 2022, which the firm attributed to growing demand for financial markets data.
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