ICAP half-year profits slump 26% to £137 million
Wednesday 14 November 2012
Further signs of the extent of the strife in the City emerged today with some dire results from ICAP.
The interdealer broker — it trades on behalf of big banks only — saw half-year profits slump 26% to £137 million. With even the biggest investors reluctant to place bets while they await clarity from the eurozone confusion, trading revenues are down across the Square Mile and redundancies are high.
Michael Spencer, pictured, chief executive and 16% shareholder, admitted: “This has been one of the toughest periods in my 36-year career in the wholesale financial markets. Trading volumes have fallen significantly across nearly all asset classes.”
Spencer, who also owns spread betting house City Index and is a significant benefactor to the Conservative party, had few words of comfort for the immediate future.
“I do not believe the negative environment will continue indefinitely but equally I do not expect it to improve imminently,” he said.
ICAP warned full-year earnings would be at the low end of the range of analyst forecasts. That sent the shares wobbling down more than 5%, off 16.5p at 293.3p, leaving the company valued at £1.9 billion.
Brokerages such as ICAP and rival Tullett Prebon make money by matching buyers and sellers of bonds, currencies and swaps, but they have been hit by a drop in trading activity as investment banks cut back in the financial crisis.
Tullett Prebon said last week that revenue for the four months through October fell 12% due to “challenging” market conditions.
Mountain goats miraculously survive avalanche in the Alps
Skyfall's Ben Whishaw confirmed for Freddie Mercury film
A cautionary tale for ambitious would-be authors
Trenton Oldfield deportation: Boat Race protester allowed to stay in UK over fears his Indian wife would face racism in Australia
Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
Teenage girl convicted of robbery after taking pre-crime selfie wielding knife
Housing double whammy: A whole generation ‘won’t be able to buy or rent a home’
'I'm experiencing austerity as well', says Princess Michael of Kent
- 1 Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
- 2 TK Maxx and discount stores: If it looks too good to be true, it probably is
- 3 Teenage girl convicted of robbery after taking pre-crime selfie wielding knife
- 4 Government delays EU immigration report because it is too positive
- 5 'I'm experiencing austerity as well', says Princess Michael of Kent
- < Previous
- Next >
iJobs Money & Business
£75000 - £85000 per annum + attractive benefits: Pro-Recruitment Group: Senior...
£70000 - £80000 per annum + Commission Package: Harrington Starr: Due to winni...
£60000 per annum: Harrington Starr: Support Analyst (Back Office, CRM, Sharepo...
£65000 - £80000 per annum + Excellent Bonus, Package : Harrington Starr: Busin...