CFT Reports Rising Margins for Japanese Retail Business

Despite the challenging market conditions throughout the first half of 2019, inter-dealer brokerage company Compagnie Financiere Tradition (CFT) is reporting an increase in revenues when compared to the first half of 2018. The company not only managed to grow its core institutional business but also reported a swift performance increase of its Japanese retail broking subsidiary, Gaitame.com.

According to the data published his morning, CFT posted adjusted consolidated revenue of CHF520 million in the first six months. The figure is 3.5 percent higher when compared to last year. Operating margins improved materially, rising from 37.2 percent in the first half of 2018, to 43.4 percent this year.

Delving into the details, the adjusted revenue from CFT’s inter-dealer broker business grew by 3.1 percent to CHF 501.0 million. Meanwhile, the firm’s Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term trading business for retail investors in Japan, Gaitame.com, was up by 11.3 percent to CHF 19.5 million.

Gaitame Margins

The operating profit at Gaitame.com in Japan increased by 33 percent when compared to the previous year’s first half. With the increasing margin of its operations, the retail brokerage segment is a significant bump in net profits of the interdealer broker in the first half of the year.

Adjusted operating profit before exceptional items was CHF 57.4 million against CHF 57.0 million in the first half of 2018. The 0.4 percent increase in constant currencies translates into an operating margin of 11 percent. The company also booked lower exceptional costs of CHF 6.9m when compared to CHF 7.3m during the previous period.

CFT Metrics

For the whole group, CFT reported consolidated revenues of CHF 474.3 million against CHF 459.8 million in the first half of 2018. The revenues figure is up 3.1 percent in constant currencies, while the reported operating profit was lower by 5.1 percent in constant currencies to CHF 39.5 million, compared with CHF 41.5 million in the first six months of 2018.

Net financial expenses at CFT totaled CHF 4.4 million, a fighter which is significantly higher than the CHF 2.3 million reported a year ago. Consolidated net profits were up by eight percent to CHF 36.8 million.

The Swiss brokerage company is looking ahead to a sustained level of activity in July and August when compared with last year. CFT also is looking to acquire new talent in order to further enhance its product portfolio across its geographic footprint.

The company remains open to external growth opportunities, as the consolidation in the industry continues.