TP ICAP Revenue Climbs 7% Amid Market Volatility

TP ICAP Group PLC (LON: TCAP) has demonstrated resilience in a fluctuating market, reporting a 7% increase in group revenue to £1,783 million for the nine months ended September 30, 2025.

This growth, measured in constant currency, signals the firm's ability to navigate challenging conditions, although reported currency growth was slightly lower at 5%.

Global Broking led the charge, surging 10% year-to-date, reflecting the division's success in capitalizing on favorable market dynamics across various asset classes. Liquidnet also contributed significantly, posting a 9% revenue increase, while Parameta Solutions saw a more modest rise of 5%. Energy & Commodities (E&C), however, experienced a 3% decline, a point of concern for investors to note.

The third quarter results, compared against a record period in the previous year, showed a 3% increase in Group revenue to £560 million. Global Broking continued its strong performance, growing 7%. E&C revenue declined by 7%, which the Group attributes to increased competition for broking talent. Liquidnet experienced a slight dip of 2%, contrasting with the exceptional growth seen in Q3 2024. Parameta Solutions maintained its growth trajectory, increasing by 4%.

TP ICAP's focus on Parameta Solutions remains a key strategic priority. The Board is actively evaluating the optimal timing for a potential minority US listing, underscoring its commitment to sustainable growth within this segment. This move could unlock further value and attract a broader investor base.

The decline in E&C revenue warrants attention. The company acknowledges the challenges posed by competition for broking talent and has a strong hiring pipeline in place. The benefits of these hires are expected to materialize from 2026 onwards. This suggests a potential drag on performance in the short term, but a possible rebound in the medium term.

The Board maintains a positive outlook, affirming comfort with full-year 2025 market expectations for adjusted EBIT, contingent on foreign exchange movements. The significant USD exposure, with approximately 60% of Group revenues and 40% of Group costs denominated in USD, makes the company particularly sensitive to fluctuations in the USD/GBP exchange rate.

TP ICAP plans to release its 2025 Preliminary Results on March 12, 2026. Until then, markets will be closely monitoring the performance of the E&C division and any developments regarding the potential US listing of Parameta Solutions.