TP ICAP sees potential loss of £14m from sanctioned Russian customers

Inter-dealer broker ICAP practical said revenue was rising in the current financial year as market volatility increased over the war in Ukraine, and added that losses from sanctioned Russian customers could reach £14 million.

The company on Tuesday reported an 81% drop in its annual pre-tax profit to £24m in 2021. Revenue to March 11 was up 16% year-on-year.

He said he lost £4million on failed settlements following sanctions against Russia, and faced potential unrealized losses of a further £9million and £1million from impaired trade debtors.

“Market volatility continued at higher levels in 2022, with the return of inflation and geopolitical uncertainty driving higher volumes in many of our markets,” the company said.

“The war has resulted in sanctions against Russian individuals, entities and their affiliates and as a result we continue to actively manage our business and minimize our financial exposure. Overall revenue from Russian customers was around 0.5% of total group revenue in 2021.”

The company forecasts a “slight” improvement in adjusted earnings before interest and tax margin assuming a similar revenue profile to 2021.

The additional cost savings targeted were to be £25m, which would be impacted by additional Brexit costs, realized and unrealized losses from sanctioned Russian customers and inflationary increases.

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