Interdealer broker Compagnie Financière Tradition today published its financial report for the first half of 2022.

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 Forex 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 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.

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.

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 says it will pursue its growth strategy and cost discipline, while maintaining investment in its data and analytics activities and hybrid broking capabilities.