Compagnie Financière Tradition’s Overall Revenues Increase 4.1% in Q4 2017

The company’s Japanese retail Fforex revenues dropped 17.5% during the period, limiting the overall performance.

Compagnie Financière Tradition released its Q4 performance report, showing promising results. The company posted a consolidated revenue of 201.7 million CHF, signifying a 4.1% increase relative to 190.7 million CHF during Q4 2016.

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The company also reported its consolidated adjusted revenue, which improved by 4.4% to 219.8 million CHF, compared to 207.6 million CHF during the same period last year. The group’s interdealer broking business (IDB) also saw enhanced performance, improving by 5.4%. Conversely, the forex trading business for retail investors in Japan (Non-IDB), did not fare nearly as well, decreasing by 17.5% from data released for Q4 2016.

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Yearly data for 2017 shows performance has remained mostly stagnant. The company’s consolidated revenue during 2017 reached 802.5 million CHF, dropping a modest 0.1% from 2016 levels of 803.4 million CHF. It is important however to consider the changes in values of various currencies, which affect the overall data in CHF, due to discrepancies in conversion rates from the previous year. Accounting for influence of currency values paints a slightly more positive picture, with consolidated revenues up 1.2% from 2016.

The report also shows that consolidated adjusted revenue increased by 1.8%, reaching a combined 873.5 million CHF over the course of the year. On a more detailed level, adjusted revenue from IDB was up 2.9%, while that of the forex trading business dropped 23.1%.

The writing was on the wall with regard to the non-IDB revenues. Compagnie Financière Tradition released H1 data back in July of last year. The numbers were clearly indicative of similar trends as seen on the overall year’s data. The company’s Japanese retail forex revenues declined 28.6% in H1, an even more dramatic fall than the overall yearly figures.

The drop in revenues for the company’s Japanese retail forex arm could be attributed to the surge in demand for cryptocurrencies. There appears to be a trend around the world, and in Japan in particular, of investors shifting their attention, and thereby their funds, toward the cryptocurrency market and away from the FX market. While there are conflicting opinions regarding this trend, it is clear that several Japanese FX and CFD providers are releasing lower than normal performance and volume data during 2016.

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