Compagnie Financière Tradition: Net profit Group share up 46.4% to CHF 51.1m
Ad hoc announcement pursuant
to Article 53 of the Six Exchange
Regulation Listing Rules Lausanne, 2 September 2022
Adjusted revenue of CHF 525.1m,
up 7.7% at constant exchange rates
Adjusted operating profit before exceptional items
of CHF 69.3m, for an operating margin of 13.2%
Net profit Group share up 46.4% to CHF 51.1m
CHF m
H1 2022
H1 2021 Variation in current currencies Variation in constant currencies
Reported (IFRS) Revenue 483.9 452.0 +7.1% +7.5% Operating profit 43.9 43.8
+0.1% +0.1% Operating margin 9.1 % 9.7 % Profit before tax 67.4 49.2 +37.0%
+39.2% Net profit Group share 51.1 35.5 +44.0% +46.4% Adjusted* Revenue 525.1
491.0 +7.0% +7.7% Operating profit before exceptional items 69.3 58.1 +19.4%
+21.4% Operating margin before exceptional items 13.2 % 11.8 %
* with proportionate consolidation method for joint ventures ('Adjusted')
Overview
A shift in central-bank monetary policy, away from quantitative easing and
rate hikes, was beneficial for the Group’s operations. This positive trend was
reflected in all regions, and particularly in foreign exchange and interest
rate products and securities and security derivatives.
Against this backdrop, the Group’s adjusted consolidated revenue was up 7.7%
at constant exchange rates to CHF 525.1m, compared with CHF 491.0m in 2021.
Adjusted revenue from interdealer broking business (IDB) was up 7.3% at
constant exchange rates to CHF 507.5m, while revenue from the online forex
trading business for retail investors in Japan (Non-IDB), was ahead 17.5% to
CHF 17.6m.
Adjusted operating profit before exceptional items was CHF 69.3m against CHF
58.1m in the first half of 2021, up 21.4% at constant exchange rates, for an
operating margin of 13.2% and 11.8% respectively. Exceptional costs represented
CHF 13.3m against CHF 3.7m in the previous period. They include in particular a
provision of CHF 9.0m in connection with sanctioned Russian counterparties.
This provision concerns receivables related to unsettled matched principal
transactions and brokerage receivables.
Reported revenue and operating profit
Reported consolidated revenue (IFRS) was up 7.5% at constant exchange rates to
CHF 483.9m compared with CHF 452.0m in first-half 2021.
Reported operating profit for the period was CHF 43.9m against CHF 43.8m in
2021, up 0.1% at constant exchange rates for an operating margin of 9.1%.
Excluding the impact of Russia, the operating margin was 10.9% against 9.7% in
the previous period.
Net profit
The Group reported net financial income of CHF 9.4m in the first six months of
2022, against net financial expense of CHF 5.0m in first-half 2021. Net foreign
exchange results due to exchange rate fluctuations positively impacted the
Group’s financial income and represented a gain of CHF 14.4m for the period due
to movements in the Russian rouble, against a loss of CHF 0.5m in the same
period last year. Interest expense on bank borrowings and bonds, net of
interest income from short-term cash investments, was CHF 3.8m against CHF 3.3m
in the previous period.
The share in the results of associates and joint ventures was CHF 14.1m
against CHF 10.4m in first-half 2021, up 40.6% at constant exchange rates.
The Group’s tax expense amounted to CHF 13.1m against CHF 10.1m in first-half
2021 for an effective tax rate of 25% against 26% in the previous period.
Consolidated net profit was CHF 54.3m compared with CHF 39.1m in first-half of
2021, with a Group share of CHF 51.1m against CHF 35.5m in 2021, an increase of
46.4% at constant exchange rates.
Balance sheet
The Group maintained its focus on a sound balance sheet with a strong capital
position while keeping a low level of intangible assets and a strong net cash
position. Consolidated equity, before deduction of treasury shares of CHF 8.1m,
was CHF 435.0m at 30 June 2022, with adjusted cash of CHF 199.0m including
Group share of net cash from joint ventures.
Consolidated equity stood at CHF 426.9m (31 December 2021: CHF 429.7m) of
which CHF 403.9m was attributable to shareholders of the parent (31 December
2021: CHF 407.5m). Total adjusted cash, including financial assets at fair
value, net of financial debt, was CHF 104.3m at 30 June 2022 against CHF 105.7m
at 31 December 2021.
Outlook
The level of activity in July and August was up by around 15% on the same
period last year, underpinned largely by central-bank monetary tightening
policy in the face of rampant 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.
Half-year report
The 2022 half-year report of Compagnie Financière Tradition SA is now
available on the Company’s website at
http://tradition.com/financials/reports.aspx
Compagnie Financière Tradition SA is one of the world's largest interdealer
brokers in over-the-counter financial and commodity related products.
Represented in over 30 countries. Compagnie Financière Tradition SA employs
more than 2.400 people globally and provides broking services for a complete
range of financial products (money market products. bonds. interest rate.
currency and credit derivatives. equities. equity derivatives. interest rate
futures and index futures) and non-financial products (energy and environmental
products. and precious metals). Compagnie Financière Tradition SA (CFT) is
listed on the SIX Swiss Exchange.
For more information, please visit www.tradition.com .
Patrick Combes, President Rohan Sant Compagnie Financière Tradition SA Voxia
communication +41 (0)21 343 52 87 +41 (0)22 591 22 63 actionnaire@tradition.ch
rohan.sant@voxia.ch
Anhang CFT - Ad hoc announcement pursuant to Art. 53 LR - Communiqué des
résultats H1 2022 - EN_VF
