Compagnie Financière Tradition marks rise in profits in 2019

Maria Nikolova

Consolidated net profit amounted to CHF 64.3 million, with a Group share of CHF 60.4 million against CHF 50.8 million in 2018, an increase of 18.8% at constant exchange rates.

Compagnie Financière Tradition, an interdealer broker in over-the-counter financial and commodity related products, today published its financial results for 2019, with the report revealing higher revenues and profits.

The Group notes that its activity grew in 2019 compared with the preceding year, in a relatively changing market environment. Following a slight growth in the first half, activity increased strongly over the summer period to return to balance in the last months of the financial year. The interdealer broking business (IDB) benefited from the recruitment efforts in specialised brokers to reinforce the Group’s presence in a number of regions and asset classes.

In 2019, Group’s adjusted consolidated revenue reached CHF 1,012.4 million compared with CHF 971.7 million in 2018. This translates into a rise of 4.2% at current exchange rates, or 4.7% in constant currencies. Adjusted revenue from IDB business rose 5.0% in constant currencies to CHF 975.7 million while the Forex trading business for retail investors in Japan, Gaitame.com, was slightly down 2.7% to CHF 36.7 million.

Reported operating profit for the year was up 12.7% in constant currencies to CHF 65.3 million compared with CHF 57.9 million in 2018, for an operating margin of 7.1% and 6.5% respectively.

Net financial expense was CHF 11 million for 2019 compared with CHF 5.1 million in 2018. Net foreign exchange results due to exchange rate fluctuations negatively impacted the Group’s financial income and represented a loss of CHF 1.7 million for the year against a gain of CHF 0.6 million in 2018. Interest expense on bank borrowings and bonds, net of interest income from short-term cash investments, totalled CHF 6.4 million against CHF 5.1 million in the previous year, following the placement of a new bond in July. Following the adoption of IFRS 16 Leases on 1 January 2019, an additional interest expense of CHF 2.9 million was recognised on lease liabilities in 2019.

The share in the results of associates and joint ventures was CHF 17.9 million, slightly up from CHF 17.5 million in 2018, thanks to the Group’s good performance in Mainland China.

Profit before tax was CHF 72.4 million compared with CHF 70.3 million in 2018.

Consolidated net profit was CHF 64.3 million compared with CHF 55 million in 2018 with a Group share of CHF 60.4 million against CHF 50.8 million in 2018, an increase of 18.8% at constant exchange rates.

At the Annual General Meeting to be held on May 19, 2020, the Board will be seeking shareholders’ approval to pay a cash dividend of CHF 5.0 per share (yield of 5.0%). In addition, an exceptional distribution of treasury shares will also be proposed with one share distributed for each 50 shares held (yield of 2.0%).

Read this next

Industry News

SEC Chair Gensler pitches for regulation of crypto exchanges; will Ripple benefit?

In what can be perceived to be a big boost for the crypto community, Gary Gensler, the newly appointed chairman of the Securities and Exchange Commission (SEC) has asked the Congress to look into crypto regulation.

Industry News

Baton Systems integrates with LCH for automation of collateral workflow

Baton Systems, a provider of post-trade solutions for financial markets, has announced its integration with LCH, a leading clearing house, for automating the end-to-end collateral workflow for participants in the derivatives markets.

Industry News

CBOE Expands Its European Team with Hiring of Senior VP

CBOE Europe, a pan-European exchange operator and which is a part of CBOE Group based in the US, has expanded its European team with the hiring of Natan Tiefenbrun as its Senior Vice President, Head of European Equities.

Retail FX

London C-level executive market on fire: Tickmill, you’re up

Mukid Chowdhury is now the face of Trading 212. This, however, has left a newly vacant seat. Now, it’s Tickmill’s turn to fight for a Chief Financial Officer. The C-level executive market in London is on fire at the moment.

Industry News

Sapien Capital: FCA fines £170k for allowing Solo Group’s money laundering

The role of Sapien Capital is that it executed purported OTC equity trades to the value of approximately £2.5 billion in Danish equities and £3.8 billion in Belgian equities.

Industry News

MAS invites all fintechs to apply for green tech accelerator

Fintechs should aim to solve at least one of the three key challenges proposed by MAS: (i) Mobilising Capital; (ii) Monitoring Commitment; and (iii) Measuring Impact.

Technology

LSEG tests DCM digitization platform developed with Nivaura

This issuance marks an important milestone in capital markets automation and digitization and demonstrates the potential of such platforms to improve current capital market workflows.

Industry News

Archegos Capital prepares for insolvency proceedings

Archegos Capital, the troubled capital management firm, is preparing for insolvency proceedings as banks that handled its funds are trying to recoup their losses from it.

Inside View

FinanceFeeds announces interview and media opportunities at IFX EXPO

After a tough year for much of the world and the FX industry, Ultimate Fintech has announced the first in-person B2B event of the year – IFX EXPO Dubai.