The trading platform Icap said revenue was down seven per cent to £1.27bn in the year ending 31 March. Additionally pre-tax profit fell 21 per cent to £95m, down from £121m posted a year earlier.
Why it's interesting:
While the London-based firm didn't manage to achieve full-year growth it was helped by increased market volatility due to the European Central Bank's quantitative easing announcements as well as speculation on the timing of a US interest rate rise in the second half
Revenue fell by one per cent in electronic markets as well as 11 per cent in its global broking division, however this was offset somewhat by post trade risk and information where revenue rose 10 per cent.
While the group's global broking division initially suffered amid the impact of regulation on banks clients, the restructuring started to pay off in the second half of the year helping pretax profit increase eight per cent to £143m in the first second of the year.
In the past Icap's chief executive previously said the business would leave the country if Labour won the General Election due to the impact this would have on business conditions.
What Icap said:
Michael Spencer, chief executive, said:
The past year has been one marked by both challenges and opportunities across many of our businesses.
Our bank customers have re-prioritised their sales and trading franchises and continued to reduce balance sheet risk. Our regulators continued their important work for market efficiency, embracing greater transparency and tighter, more risk averse financial systems
Against this backdrop of a transformed market environment, we have re-balanced our portfolio of assets with our electronic markets and post trade risk and information divisions now contributing three quarters of the Group's profitability.
As a result of the changes we've made, Icap is better placed to capitalise on the opportunities available and better able to serve a broader range of customers.
While Icap struggled during the first half of the year it's fortunes started to improve the second half.