Broker TP Icap said today it is launching a new joint venture in China with a local conglomerate as it showed lower profits in the first half of the year.
Profit before tax fell 3.6 per cent year-on-year to £134m, the company revealed this morning.
Meanwhile revenue ticked upwards to £922m, from £910m in the first six months of the 2018 financial year.
It came as chief executive Nicolas Breteau revealed that the company was on track to reach a £75m savings target from synergies from the merger of Tullet Prebon and Icap.
“We have delivered a resilient performance and maintained our operating margins despite a decline in trading amongst the investment banks, and additional costs driven by increasing regulation and Brexit,” he said.
“At the same time we have stepped up investment in a range of new initiatives to improve client service and to promote greater hybrid and electronic trading.”
The firm is planning to reduce costs in its front and back offices.
Breteau added: “During my first year as CEO, I have focused the business in those areas where we provide the greatest value to our clients and have the greatest competitive advantage. We have also made considerable organisational changes, made good progress on integration, are implementing an improved risk management framework and simplifying our legal entity structure.”