Icap's Michael Spencer eyes boost from a "Grexit" and US interest rate hike

A Greek exit from the eurozone and an interest-rate rise in the US could boost profits at Icap this year, City grandee Michael Spencer has said.

The inter-dealer broker acts as intermediary between buyers and sellers of financial products like currencies and swaps and benefits when the markets are choppy.

Icap’s pre-tax profits fell by 21% to £95 million during the year ending March 31, with revenues down 7% to £1.27 billion.

It was hit by low levels of volatility in the first half and investment banks scaling back trading activities.

However, Spencer — who hosted Cheryl Fernandez-Versini at an Icap charity day — said: “The first half of the year was undoubtedly challenging but volatility began to pick up in the second half with the European Central Bank money printing and expectations of a US interest-rate rise.

“The threat of Greece leaving the eurozone could lead to more volatility in the markets this year.”

Icap slashed 740 jobs last year, including 496 brokers, as the broker focuses its operations on electronic trading and post-trade services after an overhaul.