The City broker said it is comfortable with profit forecasts after a solid third quarter, although its Liquidnet and Parameta units had a more subdued period.

TP ICAP Group has reported another period of growth led by its traditional broking franchise. In a trading statement issued on 3 November, the group said Revenue rose 11% at constant currency in the third quarter to £620m, taking the nine-month total to £1,912m, up 9% on the same basis.

The board said it is comfortable with market expectations for 2026 adjusted EBIT, subject to foreign exchange movements. Company-compiled consensus, based on seven analysts at 30 October, stands at £367m, within a range of £357m to £378m.

Broking does the heavy lifting

The dominant contribution came from Global Broking, where revenue climbed 16% in the quarter and 12% over nine months. Management pointed to growth in all asset classes year to date, with equities particularly solid and rates also performing well, and credited its strategy, a firmer Franchise and supportive market conditions.

Energy and Commodities delivered a better third quarter, with revenue up 7% at constant currency, although nine-month growth stood at only 3%. Global oil futures, which account for more than half of the division's revenue, have been weak, with solid growth in power and Investment in new desks and brands helping to compensate. The company said the division is well placed for a recovery in activity.

A reorganisation has shifted some activities between units. Liquidnet's COEX business, excluding its RV algorithmic desk, along with Listed Derivatives and the digital Assets Business previously in Energy and Commodities, have moved into Global Broking. TP ICAP (LSE:TCAP) said the change has no material impact on divisional performance.

Quieter quarters for Liquidnet and Parameta

Revenue at Liquidnet, the electronic equities and multi-asset venue, slipped 1% in the quarter and was up just 1% across the nine months. The group (LSE:TCAP) said the equities block trading market had been subdued, linking this to the effect of the Middle East conflict on risk appetite and client behaviour. It said Liquidnet had maintained its market position and expanded its multi-asset activity, and it launched two products in the period: Meridian, a combined suite of algorithmic, liquidity, analytics, execution and AI tools, and SuperBlock TI, designed to improve natural block liquidity.

Parameta Solutions, the data and analytics division, recorded flat third-quarter revenue at constant currency, or a 2% fall at actual rates, following a decline in inter-division revenue that the company attributed to a one-off benefit in the prior-year comparison. Nine-month revenue was 4% higher, and annual Recurring Revenue increased 5% year on year, supported by higher retention and healthy renewals.

Parameta also closed what the company (LSE:TCAP) described as its largest new-logo contract to date with a US Buy-Side customer. The pipeline is said to be building, with new products gaining traction, though the statement gave no value for either the contract or the pipeline.

The pattern of results underlines how the group's performance remains tied to trading conditions in wholesale markets. Volatility tends to encourage activity in rates and equities broking, while the same uncertainty can deter large institutional block trades of the kind that Liquidnet facilitates. The contrasting performances within a single quarter illustrate how those forces work in opposite directions across the portfolio.

Currency is another variable. Nine-month group revenue increased 9% at constant currency but 7% at actual rates, and the board's comments on full-year consensus were explicitly qualified by Exchange Rate movements.

The trading statement did not include an update on Capital returns, and investors will have to wait until the group's preliminary results, scheduled for 11 March 2027, for the complete picture on profit, cash generation and distributions for the year.