TP ICAP (LON: TCAP) released its full year financial figures for 2022 and reported revenue up 13.5 per cent (7 per cent at constant currency) to over £2.1 billion. It ended the year with pre-tax profit of £113m, compared with just £24m a year earlier and above analysts’ expectations of £108m.
The London-listed company connects buyers and sellers in the global financial markets and, above all, profits from the market volatility and other macroeconomic policies.
“We have delivered a strong performance: high single-digit revenue growth and increased profitability. Rates, our largest business, benefited from significant monetary tightening in many economies,” said TP ICAP Group CEO Nicolas Breteau.
In regulatory results, the group reported basic earnings per share of 13.2p, up from 0.7p in 2021. For the adjusted figure, basic earnings per share were 24.9p, down from 19.5p previously .
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Given the astronomical rise in earnings, TP ICAP decided to pay 12.4p per share as a dividend to its shareholders. Last year it shared a dividend of 9.5 pence per share.
Diversified revenue streams
TP ICAP is a diversified company with multiple revenue streams. Revenue from its global brokerage business grew 13 percent on a reported basis and 7 percent in constant currency, at £1.25 billion in absolute value. Of the total, foreign exchange and money market products brought in £302m.
Revenue from Energy and Commodities units was £387m, up 5 per cent at reported rates but down 2 per cent at constant exchange rates. In addition, Parameta Solutions had a turnover of £177 million, which is 19 per cent higher on a reported basis.
Liquidnet, dark pool operator TP ICAP acquired in 2021, had a turnover of £325m last year. It increased 25 percent and 18 percent in reported and constant currencies.
bullish outlook
TP ICAP emphasized that it is well positioned to benefit from the ongoing central bank pullback liquidity . In addition, she expects a moderate inflation effect with a continued focus on cost efficiency. Given the heightened global rate hikes, the group expects its volumes to be solid in 2023.
“Our transformation is going well,” Breteau added. “We have a clear strategic roadmap and a strong franchise. Our market leading brokerage positions and deep liquidity pools mean we are well positioned as central banks continue to withdraw liquidity and interest rates remain high.”
Meanwhile, TP ICAP is expanding its range of services. Its wholesale crypto assets exchange, Fusion Digital Assets, received an FCA registration to operate in the UK markets last year. In addition, Parameta Solutions became an FCA-authorized benchmark administrator.
TP ICAP (LON: TCAP) released its full year financial figures for 2022 and reported revenue up 13.5 per cent (7 per cent at constant currency) to over £2.1 billion. It ended the year with pre-tax profit of £113m, compared with just £24m a year earlier and above analysts’ expectations of £108m.
The London-listed company connects buyers and sellers in the global financial markets and, above all, profits from the market volatility and other macroeconomic policies.
“We have delivered a strong performance: high single-digit revenue growth and increased profitability. Rates, our largest business, benefited from significant monetary tightening in many economies,” said TP ICAP Group CEO Nicolas Breteau.
In regulatory results, the group reported basic earnings per share of 13.2p, up from 0.7p in 2021. For the adjusted figure, basic earnings per share were 24.9p, down from 19.5p previously .
Continue reading
Given the astronomical rise in earnings, TP ICAP decided to pay 12.4p per share as a dividend to its shareholders. Last year it shared a dividend of 9.5 pence per share.
Diversified revenue streams
TP ICAP is a diversified company with multiple revenue streams. Revenue from its global brokerage business grew 13 percent on a reported basis and 7 percent in constant currency, at £1.25 billion in absolute value. Of the total, foreign exchange and money market products brought in £302m.
Revenue from Energy and Commodities units was £387m, up 5 per cent at reported rates but down 2 per cent at constant exchange rates. In addition, Parameta Solutions had a turnover of £177 million, which is 19 per cent higher on a reported basis.
Liquidnet, dark pool operator TP ICAP acquired in 2021, had a turnover of £325m last year. It increased 25 percent and 18 percent in reported and constant currencies.
bullish outlook
TP ICAP emphasized that it is well positioned to benefit from the ongoing central bank pullback liquidity . In addition, she expects a moderate inflation effect with a continued focus on cost efficiency. Given the heightened global rate hikes, the group expects its volumes to be solid in 2023.
“Our transformation is going well,” Breteau added. “We have a clear strategic roadmap and a strong franchise. Our market leading brokerage positions and deep liquidity pools mean we are well positioned as central banks continue to withdraw liquidity and interest rates remain high.”
Meanwhile, TP ICAP is expanding its offering. Its wholesale crypto assets exchange, Fusion Digital Assets, received an FCA registration to operate in the UK markets last year. In addition, Parameta Solutions became an FCA-authorized benchmark administrator.
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