TP Icap Revenues Lower in Q1

In what could be considered an obvious outcome, given the extreme volatility in markets in Q1 2020, inter-dealer and information services firm TP Icap has reported a decline in revenue for the first quarter of 2021.

Reported revenues for the group were £483 million, a 9% drop from the first quarter in 2020, however (on a constant currency basis) this is a 3% increase from the same period in 2019.

Global Broking remains the main revenue generator for the firm, in the latest period revenues were £312 million, a 10% decline on Q1 2020 (and broadly unchanged from the same period in 2019).

This also represents the first reporting period since the firm renamed two divisions. The first, Agency Execution, which was formerly Institutional Services, generated revenues of £34 million from £35 in Q1 2020 (this is 79% higher than in Q1 2019); while the former Data & Analytics division, now named Parameta Solutions, turned in revenues of £42 billion, up from £38 billion in the first quarter of 2020 (and a 17% increase on 2019).

“Following the exceptional revenue performance by the group in Q1 2020 driven by extreme volatility across all asset classes, these results represent a solid performance in the first quarter of 2021,” says Nicolas Breteau, CEO of TP Icap. “Throughout the Period, the group’s core businesses have continued to successfully diversify and electronify their activities.

“In Global Broking we have continued the implementation of our hub strategy across Rates, FX and Credit and continue to expand our hybrid and electronic matching technology offering,” he continues. “Parameta Solutions posted double digit revenue growth relative to Q1 2020. Our Post Trade Services division has been restructured and is now within Parameta Solutions in order to deliver more focused client products. The group’s Energy & Commodities division has successfully responded to its clients’ decarbonisation agenda and I am particularly proud that approximately 40% of revenues of this division now come from positive, transitional or carbon neutral products. In our Agency Execution division (formerly Institutional Services) we have continued our strategy of adding more asset classes, deepening geographic reach and further electronification.”

Full year guidance for the firm remained unchanged.