TP ICAP stock jumps in biggest single-day surge since 2020

Shares of UK interdealer broker TP ICAP surged on Wednesday following the release of better-than-expected half-year earnings and the launch of a share buyback program. In early morning trading, TP ICAP shares rose by 13% to reach 173.70 pence each on the London Stock Exchange, its highest one-day percentage gain since March 2020.


In the six months through June 2023, TP ICAP’s H1 revenue climbed by 4.8% to £1.13 billion compared to £1.08 billion in the previous year.

TP ICAP reported an adjusted profit before tax of £146 million, up from the £116 million it booked in the same period last year. Moreover, the company’s pretax profit rose by 26% to £91 million, up from £72 million a year ago.

TP ICAP attributed its positive financial performance to the heightened volatility seen in the first half, particularly within its Global Broking division.

In the meantime, TP ICAP declared an interim dividend of 4.8p per share, reflecting a 6.7% increase from the previous year’s dividend of 4.5p. Furthermore, the world’s largest inter-dealer broker announced the commencement of a £30 million share buyback scheme. This move comes after TP ICAP successfully freed up £100 million in cash, six months ahead of schedule in the first half of last year.

According to TP ICAP, energy markets have returned to normalcy after facing challenges in 2022, with geopolitical uncertainty causing a significant decline in trading volumes. The company’s energy and commodities division reported a 12% increase in revenue for the six-month period ending on June 30.

“Rates had another strong period benefiting from market volatility, interest rate rises and the high inflationary backdrop in the first six months. In Energy & Commodities, the first half reflected improved market conditions following a challenging 2022. European gas and power prices normalised during the period which lowered client margin requirements resulting in improved trading volumes,” the company said.

The London-listed interdealer brokerage also expressed confidence in its future business, noting the expectation of higher interest rates throughout the year and the moderating effect of the recent strong US Dollar.

TP ICAP, which earns its bread from making markets in different asset classes, employs thousands of brokers who negotiate trades in markets such as FX and commodities. The company’s broking customer base comprises mainly larger dealers, whereas exchange-traded volume reflects a more diverse participant mix.

TP ICAP was formed five years ago following Tullett Prebon’s acquisition of the voice-broking business from its former rival interdealer broker ICAP. TP ICAP’s data and analytics division is a provider of real-time price information from the global OTC financial and commodity markets, covering data from the wholesale inter-dealer brokered financial markets.