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

Retail FX

Moomoo onboards 100,000 Malaysian clients in six weeks

“We are committed to enhancing the investment experience with smarter tools and deeper insights. Our mission is to not only grow with the Malaysian market but to lead it, shaping the future of investing in the region.”

Institutional FX

Clearwater completes acquisition of Wilshire’s analytics solutions

“Our vision is to create the preeminent investment management solution for firms around the globe. Clearwater’s integrated platform eliminates the need for multiple data reconciliations, serving as a reliable singular source of truth.”

Fintech

BizCuits integrates DXtrade platform for CFD brokers and props

The DXtrade platform features built-in trading journals, performance dashboards, responsive charting, and mobile trading apps.

Chainwire

Decoding Bitcoin’s Future: Bybit Insights on Halving, ETFs, and Macro Shifts

In a riveting panel discussion hosted by Bybit, one of the world’s top three crypto exchanges by volume, key figures from the crypto industry gathered to discuss crypto and global finance.

Digital Assets

CoinMENA taps Zodia Markets for enhanced liquidity

“With Zodia Markets we substantially enhanced our service offering and can provide investors with more efficient avenues for entering and exiting the digital assets market, with minimal transaction costs and efficient settlement.”

blockdag

BlockDAG’s Rise: A Potential $20 By 2027 Against Bitcoin And Ethereum Classic’s Fluctuations, Achieving $19.5M In Presale

With projections setting BlockDAG’s value to soar to $20 by 2027, its innovative ASIC mining rigs and a strategic lunar keynote teaser enhance its allure as the top long-term cryptocurrency investment.

Chainwire

Unveiling the KARRAT Protocol: Pioneering the Next Era of Gaming, Entertainment, and AI Innovation, Reshaping Hollywood and Beyond

$KARRAT is the governance token of the KARRAT Protocol. Using $KARRAT, the community will determine how the KARRAT Protocol is integrated into games and products, empowering the community of players and consumers, much more than traditional entertainment titles have.

Digital Assets

FTX customers drop claims against Sam Bankman-Fried

Former FTX CEO Sam Bankman-Fried has reached a preliminary settlement agreement with a group of FTX customers who have decided to drop their class action lawsuit against him.

Digital Assets

Ontario court sues Binance for securities law violations

Ontario’s Superior Court of Justice has filed a class action lawsuit against cryptocurrency exchange Binance for allegedly selling crypto derivative products to retail investors without registration, violating securities laws.

<