Broking division underpins revenue growth at TP Icap

Interdealer broker TP Icap posted a jump in revenue on Tuesday thanks to a solid performance from its global broking division.

In the nine months to 30 September, total group revenue rose 10% from the same period a year earlier to £1.59bn. TP Icap said it benefitted from favourable market conditions in the global broking segment, particularly in rates, which is its largest and most profitable asset class.

Global broking revenues were 9% higher, with all asset classes generating high single digit to double digit growth. "This performance underlines the strength of the franchise, which is well positioned as central banks continue to withdraw liquidity and increase interest rates," TP Icap said.

In addition, the strengthening US dollar remained a "meaningful" tailwind. The company noted that around 60% of its revenue and 40% of its costs are dollar-denominated.

In the energy & commodities segment, revenue fell 3% in the nine-month period amid a "challenging" European gas and power market. "Significant price rises and increased exchange margin requirements resulted in liquidity contracting and low levels of market activity," TP Icap said.

In the third quarter, group revenues rose 5% on the same period a year earlier to £508m, with global broking revenues 12% higher.