Compagnie Financière Tradition is a leading interdealer broker (IDB) in the international market. The Group is present in 30 countries, with over 2,300 employees worldwide. It provides broking services for a comprehensive range of financial products (money market products, bonds, interest rate, currency and credit derivatives, equities, equity derivatives, interest rate futures and index futures) and commodity-related markets (energy and environmental products, and precious metals). Compagnie Financière Tradition SA is listed on the SIX Swiss Exchange (CFT). The Group facilitates transactions between financial institutions and other professional traders in the capital markets. In response to an evolving regulatory landscape and as a logical extension of its voice brokerage services, it accelerated the development of its electronic brokerage services through hybrid proprietary technology and the launch of new trading platforms.
Rising interest rates from the second half of 2022 generated higher trading volumes which benefited the Group’s activities.
Revenue and reported operating profit
Company Financière Tradition grew activity levels in 2022 with reported consolidated revenue of CHF 947.4m compared with CHF 873.6m in 2021, up 10.5% at constant exchange rates, or 8.4% at current exchange rates.
Operating profit and net profit
The Group posted strong growth in operating profit to CHF 94.2m against CHF 73.2m in 2021, an increase of 28.7%. This performance was mainly attributable to sustained activity across all geographical regions, particularly in the second half of the year, against a backdrop of an abrupt shift in monetary policy worldwide and rising interest rates.
Profit before tax was CHF 120.1m against CHF 85.0m in 2021.
Consolidated net profit was CHF 97.4m, up 36.2% on the year, with a Group share of CHF 89.1m against CHF 65.3m in 2021, down 36.5% at variable exchange rates.
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 stood at CHF 442.5m against CHF 429.7m in 2021, with an increase in gross free cash flow to CHF 308.3m at 31 December 2022.