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TCAP - TP ICAP News Story

345p 4.4  1.3%

Last Trade - 4:42pm

Sector
Financials
Size
Mid Cap
Market Cap £1.92bn
Enterprise Value £2.03bn
Revenue £1.78bn
Position in Universe 293rd / 1826

UPDATE 1-TP ICAP hurt by investment bank trading woes

Tue 6th August, 2019 7:44am
(Adds background, quote from statement, VIX performance YTD)
    Aug 6 (Reuters) - TP ICAP  TCAPI.L , the world's largest
inter-dealer broker, reported lower first-half underlying profit
on Tuesday as its broking division took a hit from recent poor
trading results at some of its biggest investment bank clients.
    The company, which brings together buyers and sellers in
financial, energy and commodities markets, said underlying
profit before tax fell 3.6% to 134 million pounds for the six
months ended June 30.
    TP ICAP said revenue at its biggest business, global
broking, slumped 6% to 648 million pounds on a constant currency
basis due to a decrease in revenue across all asset classes. 
    "Various factors have contributed to this, including Brexit,
US trade tariffs, the softening of the Federal Reserve's
interest rate stance and the potential for increased
quantitative easing in the Eurozone," the company said.
    To offset the challenging trading conditions, TP ICAP said
it was taking actions to reduce front and back office costs.  
    The CBOE Volatility Index  .VIX , the stock market's main
gauge of volatility and investors' appetite for risk, ran at
similarly low levels to a year ago for much of the first half of
2019. 
    In contrast to last year, however, it showed sharp rises in
May as U.S. President Donald Trump's trade war with China
escalated and has also surged in recent days.
    TP ICAP also flagged challenging conditions in credit
markets with a lack of new issuance, as well as restrictions on
clients' balance sheets, both of which resulted in a 14% drop in
credit revenue.

 (Reporting by Muvija M and Noor Zainab Hussain in Bengaluru;
editing by Patrick Graham)
 ((Muvija.M@thomsonreuters.com; within U.S. +1 646 223 8780,
outside U.S. +91 80 6749 3638; Reuters Messaging:
muvija.m.thomsonreuters.com@reuters.net))
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