ICAP is counting on new initiatives such as EBS Direct and its new SEF to revive forex revenues
ICAP (LON:IAP) has reported today in its half-year statement that its revenue declined to 736 mln pounds, dropping marginally by 1% year on year. Despite this, operating profits were reported at 153 mln pounds, which is higher by 6% compared to the previous year, while profit before tax was up by 1% to 139 mln. The dividend payment to shareholders has been maintained at 6.60 pence per share. EBS volumes have decreased 9% to an average of $105 bln per day.
The group’s CEO Michael Spencer has stated that the company was faring well despite declining volumes over the summer months and the implementation of new financial regulations in the US. The increase in operating margin is the proof that cost saving efforts on part of the company are bringing results.
He went on to comment that the launch of ICAP’s SEF in October is proving to be promising and company’s customers are positive about the transition to the new trading environment. The appointment of Lauren Paulhac as CEO of the SEF will only help to smoothen the process and strengthen the position of the company on the US market.
The new liquidity service “EBS Direct” has started its commercial operation and its growing with the number of customers signed up reported at 325 so far. While the rise of volatility on the USD markets boosted volumes in US Treasuries and Interest Rate Derivatives, the decline on the Euro markets has compensated with big negative effects on the volumes of the EUR/USD trading on EBS.
Market participants reacted positively to the company’s announcement with shares of the company currently trading at 395p, or about 5% higher since yesterday’s closing price.
For the full report go to ICAP’s website.