Compagnie Financière Tradition registers 24% rise in net profit in 2020
Interdealer broker Compagnie Financière Tradition today posted its financial report for 2020.
The Group’s adjusted consolidated revenue amounted to CHF 981.2 million in 2020 compared with CHF 1,012.4 million in 2019. The result, however, increased by 2.4% at constant exchange rates with the interdealer broking business (IDB) up 2.6% at constant exchange rates to CHF 946.8 million while the Forex trading business for retail investors in Japan (Non-IDB) was down 3.0% to CHF 34.4 million.
Adjusted operating profit before exceptional items was CHF 111.0 million against CHF 107.9 million in 2019, a rise of 8.6% at constant exchange rates, for an operating margin of 11.3% and 10.7% respectively. Net exceptional costs represented CHF 10.5 million against CHF 24.1 million during the previous year.
In line with earlier reports, the Group reported consolidated revenue (IFRS) was CHF 903.0 million for 2020 against CHF 924.0 million in 2019, yet up 3.4% at constant exchange rates. Reported operating profit for the year was up 35.9% at constant exchange rates to CHF 84.1 million compared with CHF 65.5 million in 2019, for an operating margin of 9.3% and 7.1% respectively.
For 2020, profit before tax was CHF 86.9 million compared with CHF 72.4 million in 2019.
Consolidated net profit was CHF 74.6 million compared with CHF 64.3 million in 2019 with a Group share of CHF 70.9 million against CHF 60.4 million in 2019, an increase of 24.4% at constant exchange rates.
At the Annual General Meeting to be held on 19 May 2021, the Board will be seeking shareholders’ approval to pay a cash dividend of CHF 5.0 per share (yield of 4.4%). In addition, an exceptional distribution of treasury shares will also be proposed with one share distributed for each 75 shares held from capital contribution reserve (yield of 1.5%).
In terms of outlook, the broker notes that the average level of activity for the months of January and February shows a slight increase at constant exchange rates compared to the same period last year. However, Tradition expects to see an important base effect in the month of March given the exceptional volume of activity in the same period in 2020.
Furthermore, in line with prior years, the Group will pursue its development strategy to further enhance its product portfolio across its geographic footprint.