Interdealer broker Compagnie Financière Tradition has released its first half 2020 and Q2 results summary. And, like many companies whose revenues and income are dependent on capital markets trading activity, Tradition had a decent quarter but with activity below a supercharged Q1.
Tradition said that in the second quarter, consolidated revenue was CHF 235.5m – slightly ahead of last year Q2’s CHF 234.1m, but 15.1% below Q1’s 277.3m. Q1 of course was driven by extreme market volatility in March 2020 at the outset of the global Covid-19 pandemic.The Group’s consolidated adjusted revenue for Q2 was CHF 254.5m against CHF 256.9m in 2019, up 4.9% in constant currencies with IDB up 5.4% and Non-IDB down 7.7%.
For the full half-year 200, Compagnie Financière Tradition activity grew with reported consolidated revenue of CHF 512.8m compared with CHF 474.3m in same period in 2019, up 13.6% in constant currencies. At current exchange rates, consolidated revenue presented an increase of 8.1%. For the same period, the Group’s consolidated adjusted revenue was CHF 558.0m, compared with CHF 520.5m in 2019, an increase of 12.5% at constant exchange rates. The adjusted revenue from interdealer broking business (IDB) was up 12.8% in constant currencies while the forex trading business for retail investors in Japan (Non-IDB) presented an increase of 5.9%.
In a context of increasing volumes of activity on the financial markets and its positive impact on the Group’s revenues, a noticeable increase in results is expected compared to the previous period.
Compagnie Financière Tradition SA is one of the world’s largest interdealer brokers in over-the-counter financial and commodity related products. Represented in 29 countries, Compagnie Financière Tradition SA employs more than 2,300 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.