Compagnie Financière Tradition (SWX: CFT), a prominent inter-dealer broker and operator of the Japanese retail forex trading platform Gaitame, concluded 2023 on a high note, achieving impressive financial results.
The company reported a pre-tax profit of CHF 127.2 million, marking a substantial 16.1 percent increase from the previous year. This growth was driven by a strong performance in its annual IFRS revenue, which stood at CHF 982.4 million.
One of the key highlights of the company’s financial performance was its net profit, which reached CHF 94.4 million, representing a significant 15.9 percent increase. This growth was also reflected in the basic earnings per share, which saw a robust increase of 17.6 percent to CHF 12.71.
The Factors for Success
The positive financial results were attributed to various factors, including favorable market conditions in the energy and commodity businesses. Additionally, the development of Tradition’s activity dedicated to market data commercialization (TraditionData) contributed to the strong performance. The company also benefited from its organic growth policy, which continued to stimulate its overall activity.
Another contributing factor to Tradition’s success was the higher interest rates, which resulted in an uplift of more than CHF 9.4 million in income from cash investments. This, combined with the company’s strategic growth strategy, primarily focused on organic growth, positioned Tradition for continued success in the future.
Looking ahead, Compagnie Financière Tradition remains optimistic about its outlook, noting that its level of activity since the beginning of 2024 is up compared to the same period last year at constant exchange rates. The company intends to pursue its growth strategy, focusing on organic growth, as well as investments in its hybrid broking capabilities and data and analytics activities, leveraging its developed data science expertise.
Compagnie Financière Tradition’s strong financial performance in 2023 cements its position as a leading player in the inter-dealer broking and retail forex trading markets. With a focus on strategic growth initiatives and a commitment to delivering value to its shareholders, Tradition is well-positioned for continued success in the years to come.
