*
Profit rises five fold
*
Sees trading volumes to remain robust
*
Rates business rose 11%
(Adds results details, SVB collapse)
March 14 (Reuters) - TP ICAP , the world's
biggest interdealer broker, raised its dividend by 30% on
Tuesday after its annual profit beat market expectations, and
said it expects trading volumes to remain robust in 2023.
Trading platforms such as TP ICAP, which match buyers and
sellers in the financial, energy and commodity markets, benefit
from volatility, such as in the U.S. Treasury markets in the
wake of Silicon Valley Bank's collapse.
TP ICAP did not comment on the volatility triggered by the
sudden demises of SVB and Signature Bank in its annual
results statement.
Startup-focused lender SVB became the largest bank to fail
since the 2008 financial crisis last week, sending shockwaves
across global markets as billions of dollars belonging to
companies and investors were left stranded.
The ICE BoFA MOVE Index - one measure of expected
volatility in U.S. Treasuries surged past its COVID-era high and
now stands around levels last seen in the financial crisis.
TP ICAP said trading volumes would be strong this year but
moderated from the highs seen at the beginning of Ukraine war.
The company, announced a total dividend of 12.4 pence per share, up from 9.5 pence last year, and also saw sales at its largest and most profitable rates business rising by 11% on reported currency for the year ended Dec. 31. TP ICAP's rates business, which trades in interest rates, benefited from volatility driven by monetary tightening and a slowdown in the economic growth,
The London-listed firm reported full-year pretax profit of 113 million pounds ($137.4 million), compared with a profit of 24 million pounds last year.
Analysts had expected pretax profit of 108 million pounds,
according to a company-compiled consensus.
($1 = 0.8224 pounds)
(Reporting by Sinchita Mitra in Bengaluru; Editing by Sherry
Jacob-Phillips and Alexander Smith)
