TP ICAP plc has released a trading update in relation to the three month period from 1 January 2019 to 31 March 2019.
Revenue in the three months to March 2019 of £469m was 1% higher YoY on a reported basis and 2% lower at constant exchange rates.
Energy & Commodities, Institutional Services and Data & Analytics showed good growth, offset by Global Broking which was impacted by a weak market environment that saw sustained periods of lower volatility and volumes.
Global Broking was down 6% to £333m. This was primarily driven by lower volatility in Rates and Equities compared with the prior year, and particularly challenging market conditions in Credit and FX & Money Markets as well as weakness across European markets during the quarter.
Revenue in the Energy & Commodities division was up 7% to £93m, as the division benefitted from recent investments made in the business as well as improving market conditions in a number of products, particularly power and gas, in the Americas and APAC regions.
Nicolas Breteau, TP ICAP CEO, said:
The uncertainty created by Brexit, the softening of the Fed’s interest rate stance, and the potential for more QE in the Eurozone has impacted our traditional banking customers’ Q1 performance, weighing on market volatility and volumes. I am pleased with the performance of our Energy & Commodities division and the strong growth in both our Institutional Services and Data and Analytics businesses.