Compagnie Financière Tradition's H1 Profits Increase by 46.4%

Compagnie Financière Tradition (CFT), a Swiss interdealer broker and operator of a Japanese retail broking behemoth, declared a net profit of CHF 51,1 million for the first six months of 2022. At constant exchange rates, the amount increased by 46,4%, but at current exchange rates, the increase was 44%.

The company's revenue increased to CHF 483,9 million from CHF 452 million in the same quarter of the previous year. It represented an increase of 7.1% and 7.5% at current and constant exchange rates, respectively.

Its adjusted revenue was 525.1 million Swiss francs. While the interdealer broking business (IDB) of CFT generated CHF 507.5 million in revenue from the Japanese retail online forex trading industry, it generated CHF 507.5 million in revenue from the Japanese retail online forex trading business. Gaitame earned CHF 17.6 million, an increase of 17.5%.

The Group's operations benefited from a move in central bank monetary policy away from quantitative easing and rate hikes, according to a news statement shared with Finance Magnates. This upward trend was observed in all regions, particularly with respect to foreign exchange and interest rate products, as well as securities and security derivatives.

Additionally, CFT emphasized that the large increase in profits was the result of favorable exchange rate fluctuations. The movement of the Russian ruble resulted in a gain of CHF 14.4 million compared to a loss of CHF 0.5 million the previous year.

The company's operational profit remained unchanged at CHF 43.9 million throughout the year. Nonetheless, the operating margin decreased to 9.1% from 9.7%. On an adjusted basis, this amount was CHF 69,3 million.

In addition, the Swiss company is optimistic about its future prospects. The central bank's program of monetary tightening to combat inflation has already caused a 15 percent increase in platform activity in July and August.

CFT noted, "Compagnie Financière Tradition will continue to pursue its growth plan and maintain cost discipline while continuing to invest in its data and analytics activities and hybrid broking capabilities."