TP ICAP shares fall despite revenue growth
Interdealer broker TP ICAP Group reported record revenue growth in the first half of the year, supported by strong broker productivity, cost control, and strategic diversification.
The firm recorded adjusted revenue of £1.22bn, up seven per cent, driven by momentum in its global broking and Liquidnet divisions.
The global broking arm was the business’s best performer with a 12 per cent increase in year-on-year revenue and record earnings of £131m.
Meanwhile, Liquidnet – the group’s electronic trading platform with a focus on institutional investors – recorded earnings at £33m, up from £24m for the first half of 2024.
But shares in the group fell as markets opened on Monday. Shares in the company fell over five per cent to 290.50p.
The group announced its fifth £30m share buyback – bringing total buybacks to £150m for the past two years.
The half-year performance was driven by the business’ focus on diversification and investment in new tech.
TP ICAP’s capital discipline in focus
The strategy paid off across its equities and multi-asset businesses, with algorithmic trading revenue up 22 per cent and high-touch and programme trading jumping 12 per cent.
Liquidnet launched new desks for financial contracts based on stocks or stock indicies, known as equity derivatives, across the US and Europe.
Nicolas Breteau, group chief executive at TP ICAP, said capital discipline remained a “key priority”.
Group management and support costs edged up three per cent – below the UK rate of inflation for the period – which the group said was “despite UK national insurance increases and investment in the business”.
Breteau added: “Based on our current outlook, and in line with our capital allocation framework, the Group anticipates it can organically generate in excess of £200m across 2026 and 2027, to be made available for investment in the business and shareholder returns over the same period.”
He also hailed the acquisition of high quality pre-trade bond platform Neptune Networks as a “key milestone in our diversification strategy”.
The group is working alongside Barclays, BNP Paribas, Citi, Crédit Agricole CIB, Deutsche Bank, ING, J.P. Morgan, Morgan Stanley and UBS to “create a full-service credit platform, which will offer superior data, liquidity and value”.