Compagnie Financière Tradition (SWX: CFT), an inter-dealer broker and operator of the Japanese retail forex trading platform Gaitame, closed the year 2023 with a pre-tax profit of CHF 127.2 million, marking a 16.1% increase, achieved from its annual IFRS revenue of CHF 982.4 million. The net profit stood at CHF 94.4 million, showing a 15.9% rise.
2023 Was A Profitable Year For Compagnie Financière Tradition
The official numbers released today indicate that the operating profit from IFRS business reached CHF 105.5 million, marking a 19.7 percent increase from the previous year. The operating margin also saw an improvement to 10.7 percent from 9.9 percent.
For the joint venture, revenue exceeded CHF 1.05 billion, rising by 9.5 percent year-over-year. Operating profit showed a 17.1 percent increase to CHF 127.7 million, with the operating margin strengthening to 12.1 percent from the prior year’s 11.4 percent.
The Swiss group’s interdealer broking business saw a revenue increase of 9.6 percent, surpassing CHF 1.02 billion. Additionally, revenue from the online forex trading business for retail investors in Japan grew by 5.5 percent to CHF 31.4 million.
Tradition highlighted the positive impact of favorable market conditions in the energy and commodity sectors, along with the growth of its market data commercialization activity (TraditionData). The company emphasized that its activities are driven by organic growth policies.
Company Getting Advantage Of Higher Interest Rates
Furthermore, the Swiss group company benefited from higher interest rates, with its income from cash investments increasing by over CHF 9.4 million. Its basic earnings per share rose by 17.6 percent to CHF 12.71.
“The Group’s activity levels have been higher since the beginning of 2024 compared to the same period last year at constant exchange rates,” the group mentioned in its outlook. “Compagnie Financière Tradition plans to continue its growth strategy, focusing on organic growth, investments in hybrid broking capabilities across its operations, and in data and analytics activities, leveraging its developed expertise in data science.”