TP ICAP says second half saw recovery as FY reported profits fall

TP ICAP said it almost halved full year reported pre-tax profits, reflecting the costs of the merger between Tullet Prebon and ICAP's voice broking unit last year.

Profit before tax fell to £56.8m from £105.7m. Revenue rose to to £891m from £796m. Underlying operating profit rose to £131.5m from £107.9m.

Chief executive John Phizackerley said there had been “tentative signs of greater activity in the second half of the year”.

"In the second half of the year also witnessed an improved performance in our heritage businesses, in particular interest rates, credit and FX which have been subdued for some time. In addition, energy & commodities, equities and information sales recorded strong year on year revenue growth," he said.

Revenue in the first two months of 2017, on a pro forma basis (including the prior period results of ICAP), was in line with the same period last year at constant exchange rates, and 11% higher as reported, TP ICAP said.

The company added that it expected to manage more client relationships from within the Eurozone after the UK's decision to leave the European Union.

“There are material implications for financial markets between the so called 'soft' or 'hard' Brexit outcomes,” TP ICAP said.

“Political and economic uncertainty is likely to persist during 2017 as the debate continues on the shape of the UK's exit from the European Union and because national elections take place in a number of countries on the Continent.”

“Tensions in Russia, China and North Korea could add to a heightened sense of uncertainty compared to the recent political order. In the USA there is potential for regulatory reform that could impact markets.”