Inter-dealer broker TP ICAP has posted its financial and revenue reports for the first half of the year. According to the report, the H1 2021 profit for the broker fell dropped by 65%, as currency headwinds and subdues trading conditions contracted revenues.

The broker recorded a pre-tax profit of £28 million in H1 2021. This is noticeably lower than the £78 million recorded within the same period last year. Total revenue also dropped to £936 million, indicating a 5% drop year-over-year (YoY).

The Slow Performance Is Caused By Quiet Markets

The broker noted that the slightly poor performance is a result of the continuing uncertainty due to disruption from Covid-19 and the quiet markets.

The company also stated that its plans to conclude the £35 million annualized cost saving by the end of the year are still in place.

The Group’s adjusted operating costs also increased 2% on a constant currency basis, while its total operating costs increased 1% on a constant currency basis.

The report also revealed that its Adjusted EBIT for H1 2021 was £117 million, which is 26% less than the record during the same period last year.

Chief Executive Officer of TP ICAP, Nicolas Breteau, while commenting on the results, stated that the Group witnessed a very strong comparative period, which had an impact on the overall results.

He added that revenues excluding Liquidnet were generally in line with the same period of 2019, which had more normal trading conditions. The company has a good cost management plan, which has put it on track to achieve the annualized cost.

The Group Is On Track To Achieve Its Annualized Cost

Breteau also considered the recent acquisition of Liquidnet. He pointed out that the deal had a heavy impact on its execution revenue. He added that the group plans to incorporate Liquidnet into its businesses, with an estimated cost synergy of £20 million to be realized.