TP ICAP Benefits from Market Volatility with Solid 2022 Profit Rise

TP ICAP (LON: TCAP) published its annual financials for 2022, reporting a 13.5 percent uptick (7 percent in constant currency) in revenue to over £2.1 billion. It closed the year with a pre-tax profit of £113 million compared to only £24 million in the previous year and above analysts’ expectation of £108 million.
TP ICAP Ends 2022 With Massive Profits
The<a href=”https://www.financemagnates.com/tag/tp-icap/” target=”_blank” rel=”follow”> London-listed company </a>connects buyers and sellers in global financial markets and benefits mainly from market <a href=”https://www.financemagnates.com/terms/v/volatility/” class=”terms__main-term” id=”7fd330d9-8855-4c31-9770-cb52b328c117″ target=”_blank”>volatility</a> and other macroeconomic policies.

“We delivered a strong performance: high single-digit revenue growth and an increase in profitability. Significant monetary tightening in many economies benefited Rates, our largest business,” said the CEO of TP ICAP Group, Nicolas Breteau.

In the statutory results, the group reported basic earnings per share of 13.2 pence, rising from 0.7 pence in 2021. For the adjusted figure, the basic EPS stood at 24.9 pence compared to the previous 19.5 pence.

With the astronomical rise in profits, TP ICAP decided to distribute 12.4 pence per share as a dividend to its shareholders. Last year, it shared a dividend of 9.5 pence per share.

Diversified Revenue Streams

TP ICAP is a diversified company with <a href=”https://www.financemagnates.com/institutional-forex/tp-icap-sees-14-jump-in-q3-revenue-liquidnet-posts-22-decline/” target=”_blank” rel=”follow”>multiple revenue streams</a>. Revenue from Its global broking came in 13 percent higher on a reported basis and 7 percent on constant currency, with the absolute figure at £1.25 billion. Out of the sum, the FX and money market products brought in £302 million.

Revenue from energies and commodities units came in at £387 million, which is 5 percent higher at reported rates but dropped 2 percent for constant currency. In addition, Parameta Solutions generated £177 million in revenue, which is 19 percent higher on a reported basis.

Liquidnet, the dark pool operator TP ICAP acquired in 2021, generated revenue of £325 million last year. It increased by 25 percent and 18 percent in reported and constant currencies, respectively.

Bullish Outlook

TP ICAP highlighted that it is well-positioned to benefit from the continued withdrawal of central bank <a href=”https://www.financemagnates.com/terms/l/liquidity/” class=”terms__secondary-term” id=”47c3bef3-27ee-4953-8504-159e1b829b33″ target=”_blank”>liquidity</a>. Further, it expects a mitigated inflation impact with an ongoing focus on cost efficiencies. With the elevated global interest rate hikes, the group expects its volumes to come solid in 2023.

“Our transformation is going well,” Breteau added. “We have a clear strategic roadmap and a strong franchise. Our market-leading positions in broking, and our deep liquidity pools, mean we are well positioned as central banks continue to withdraw liquidity and interest rates remain elevated.”

Meanwhile, TP ICAP is expanding the range of its offerings. Its wholesale exchange for crypto assets, Fusion Digital Assets, gained an<a href=”https://www.financemagnates.com/cryptocurrency/tp-icap-gains-uk-registration-for-institutional-crypto-exchange/” target=”_blank” rel=”follow”> FCA registration</a> last year to operate in the UK markets. Furthermore, Parameta Solutions became an <a href=”https://www.financemagnates.com/institutional-forex/tp-icaps-parameta-solutions-becomes-fca-authorized-benchmark-admin/” target=”_blank” rel=”follow”>FCA-authorized benchmark administrator</a>.

This article was written by Arnab Shome at www.financemagnates.com.