ICAP Sees First-Half Revenue Down 14% on ‘Subdued’ Markets
ICAP Plc (IAP), the world’s largest broker of transactions between banks, expects fiscal first-half revenue will be 14 percent lower than the previous year because of “subdued” capital markets.
Pretax profit for the year ending March 31, 2013, will be within the range estimated by analysts of 307 million pounds ($496 million) to 346 million pounds “if volumes in the second half remain at current depressed levels,” the London-based company said in a statement today.
Interdealer brokers are struggling with lower trading volume and shrinking margins amid the euro-area crisis. ICAP this year restructured its voice and electronic foreign-exchange businesses to make annual savings of 50 million pounds.
“The macroeconomic environment remains difficult,” Chief Executive Officer Michael Spencer said in the statement. “We will continue to take the necessary action to constrain our cost base as well as position ICAP optimally for upcoming financial regulatory reform.”
ICAP fell 5 percent to 326.6 pence at 8:16 a.m. in London trading, the biggest fall since March 6.
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