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

Opinion

The FX Algo Wheel, is it wheels up and ready to take flight?

by David Catterick, Sales Director, BidFX Australia

Retail FX

eToro users now can trade underlying Italian stocks

Israeli social trading and multi-asset brokerage company eToro has expanded its service offering and trading products by incorporating new markets, namely Italian stocks listed at underlying exchanges.

Digital Assets

BlackRock bets on crypto bank Silvergate despite drastic fall

BlackRock, the world’s largest asset manager, has increased its stake in Silvergate Bank, a crypto-friendly lender that counts major crypto exchanges like Coinbase and Kraken as clients.

Opinion

A viewpoint from Anatoly Crachilov, CEO and Founding Partner at Nickel Digital, on SEC regulation of the digital asset sector

The SEC’s latest episode comes across as more of a PR performance rather than an act of investor protection.

Digital Assets

Tether denies receiving any loans from Celsius, the opposite is true

World’s largest stablecoin issuer, Tether dismissed reports suggesting that it received a $2 billion loan from the bankrupt cryptocurrency lender Celsius.

Institutional FX

Cboe FX volume makes strong rebound in January

Cboe’s institutional spot FX platform today announced its trading volume for the month ending January 2023, which marks a mild rebound after a steep fall in December.

Uncategorized

XS.com appoints Exness alumni Mohamad Ibrahim as CEO

XS.com, the multi-regulated financial services provider, has appointed Mohamad Ibrahim as the group’s newest chief executive officer (CEO).

Technology

B2Broker Integrates Match-Trader Solution to Expands Its White Label Liquidity Offering

A global provider of technology and liquidity for the FX and cryptocurrency markets, B2Broker recently announced the extension of its white label liquidity offering by merging with Match-Trader.

Digital Assets

UK launches open consultation to regulate crypto exchanges, custody, and lending

The government’s proposed measures have been informed by recent market events – including the failure of FTX – which reinforce the case for effective regulation and sector engagement.

<