TP ICAP PLC (LSE:TCAP), the world's largest inter-dealer broker, said its half-year revenue and pre-tax profit jumped thanks to increased market volatility and a strong performance from its Rates business as central banks tightened policy.
The FTSE 250-listed firm said given the "highly uncertain" macro and geopolitical outlook, future levels of market activity remain difficult to predict, but it is "cautiously optimistic" for the remainder of the year.
In the half year to June 30, 2022, revenue jumped to £1,080mln from £936mln, while pre-tax profit grew to £72mln from £28mln.
Adjusted earnings (EBIT) grew 15% to £142mln, whereas reported EBIT increased 57% to £99mln.
An interim dividend of 4.5p per share has been announced compared to 4.0p in the first half of 2021.
In Energy & Commodities, it expects the risk-off trading environment to continue, particularly over the summer, and the Liquidnet institutional investment network business to improve profitability.
The company said it is on track to achieve £25mln of cost savings by the end of 2022, and has conducted the first phase of a review following the company's Jersey redomicile, which identified about £100mln in cash that will be generated by end-2023 used to repay debt.
"Volatility has continued across many markets. Our core franchise, the depth of our liquidity pools, and our ongoing focus on our transformation mean we are well positioned in these market conditions," said Nicolas Breteau, chief executive.
TP shares climbed 12% to 148p in early trading.