Compagnie Financiere Tradition Sees 2.5% Drop in 2021 Adjusted Revenue

Compagnie Financiere Tradition (CFT), a Swiss interdealer broker and operator of a Japanese retail broking giant, Gaitame, has published its consolidated financials for 2021, reporting a 2.5 percent decline in its adjusted revenue. This figure came in at CHF 950.8 million compared to the previous year’s CHF 981.2 million.

The group brought in CHF 917 million as adjusted revenue from its interdealer broking business (IDB), which was down by 2.8 percent at constant exchange rates. It generated the remaining CHF 33.8 million, which is an increase of 3.8 percent, from its retail forex trading business in Japan.

The adjusted operating profit of the Swiss company for the year came in at CHF 99.9 million, which is 8 percent down from the previous year’s CHF 111 million. The operating margin also declined to 10.5 percent.

Its reported revenue for the year was at CHF 873.6 million, which is down by 3.3 percent, along with a 13 percent decline in operating profit at CHF 73.2 million. It generated a consolidated net profit of CHF 71.5 million with the group’s share at CHF 65.3 million, which is down from the previous year’s CHF 70.9 million.

“After a decrease in the first half of 2021, to be put into perspective with the exceptional volume of activity in the first half of 2020 resulting from the gradual health crisis and the very high volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term in the financial markets, the Group's activities progressed in the second half of 2021,” CFT stated in the press release shared with Finance Magnates.

The Swiss company now proposed a cash dividend distribution of CHF 5 per share.

Ongoing Conditions

As for the outlook, CFT said that the average level of activities on its platforms in January and February increased slightly.

Furthermore, it highlighted that the ongoing sanctions against Russia and counter-sanctions by Russia have caused increased volatility in the financial markets and resulted in a settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term and delivery delays of securities denominated in the ruble.

“Products, activities and counterparties related to the current crisis in Ukraine represent a very limited part of the Group's activities,” the group added.