TP ICAP interims lower as broking division revenues fall

Interbroker dealer TP ICAP said interim profits fell as tough market conditions for its investment bank customers hit the company's broking division.

Underlying pre-tax profit fell 3.6% to £134m for the six months to June 30.

Global broking, the company's largest business, saw revenues dive 6% to £648m as Brexit, a softer US Federal Reserve stance on interest rates and the potential for further quantitative easing in the Eurozone all hit market volatility and volumes.

The company added that it had set up and capitalised a new company in Paris and moved its French and German trading branches to operate under the ne entity in preparation for Brexit.

“We are in the process of moving our Spanish branch. This means that the business we currently transact from these offices is protected in the event of a hard Brexit,” the company said in a statement.

Revenues in the firm's energy and commodities division were up 8% to £187m on a constant exchange rate basis, as the business benefited from improved conditions in the power and gas markets, strategic hires and the acquisition of Axiom in November 2018.

Oil revenues were slightly up despite "challenging market conditions, with market uncertainty and localised over-supply creating downward pressure on oil volumes in the period", it said.