Swiss interdealer broker Compagnie Financière Tradition (CFT) has reported a net profit of CHF 89.1 million for the fiscal year 2022. This represents a 40.3% increase in constant currencies and a 36.5% increase in current currencies.
According to the press release, the group’s operations benefited from a shift in central bank monetary policy away from quantitative easing and towards rate hikes, particularly in Forex and interest rate products and securities and security derivatives. Additionally, the gradual transition back to the office across the trading floors due to the easing of Covid-19 measures helped Tradition’s activities and enabled the financial markets to function more efficiently.
As a result of the strong net profit figures, basic earnings per share increased by 35% at current exchange rates to CHF 11.83 from CHF 8.76 in 2021.
The Group’s activity grew during the year, with reported consolidated revenue of CHF 947.4 million compared with CHF 873.6 million in 2021, an increase of 10.5% at constant exchange rates or 8.4% at current exchange rates. Reported operating profit for the year was CHF 94.2 million against CHF 73.2 million in 2021, an increase of 29.1% at constant exchange rates.
Adjusted consolidated revenue was up 10.6% at constant exchange rates to CHF 1,028.6 million compared to CHF 950.8 million in 2021. Adjusted operating profit before exceptional items increased to CHF 130.3 million against CHF 99.9 million in 2021, an increase of 34.0% at constant exchange rates.
The Group recognized a net financial expense of CHF 3.7 million in 2022 against CHF 10.8 million in the previous year.
At the Annual General Meeting to be held on 25 May 2023, the Board proposed a dividend distribution of CHF 5.5 per share at a yield of 5%.
The group said about its out look for 2023:
The level of activity at the start of 2023 continued along the lines of last year, growing more than 10% from January to date compared with the same period in 2022 at constant exchange rates, driven by central bank monetary tightening policy to combat stubborn inflation. Compagnie Financière Tradition will pursue its growth strategy and cost discipline, while maintaining investment in its data and analytics activities and hybrid broking capabilities.
