FNG Exclusive… FNG has learned that London based institutional broker ITI Capital saw a 12% erosion in Revenues during 2023, although a much lower cost base – as the company exited the retail client business – led to much improved profitability.
Revenues at ITI Capital came in at £10.2 million in 2o23, down as noted by 12% from £11.6 million in 2022. However Net Profit of £4.3 million compared to a £195K loss the previous year, despite the lower revenue base, as ITI cut its Admin expenses from £11.8 million in 2022 to just £5.0 million last year.
ITI Capital, owned by Guernsey based investment firm Da Vinci Capital, provides comprehensive dealing and brokerage services for professional and institutional clients and eligible counterparties. The firm is an FCA regulated company, holding a Limited License – matched principal broker.
ITI said that it plans to continue developing its institutional business and fully divest its non-core business. In June 2022, the firm entered into voluntary requirements (VREQ) relating to the closure of its retail customer services. The wind-down continued through 2022 and 2023, and circa 98% of exitable retail clients were divested. The firm said it has continued to make progress in exiting the retail market and de-risking its retail book. ITI estimates that there will be a residual client book for a number of years and this will be managed as part the overall business plan. As such, the plan is bifurcated across institutional and residual retail components with the governance and oversight including the resources required to appropriately oversee the management of the residual retail component whilst simultaneously expanding the institutional business.
The ITI management team said it demonstrated in 2023 that its institutional business could be successful despite of regulatory restrictions and unfavourable market environment. The firm estimates that exiting the retail business and further focusing on the professional and institutional brokerage business will result in a significant reduction in operating infrastructure and higher profitability of the business.
ITI Capital continues to operate under a restricted license from the FCA, under which the Company is not permitted to onboard any new clients.
ITI Capital’s 2023 income statement follows below.
