Compagnie Financière Tradition (CFT), the parent company of Japanese retail broker Gaitame, has published its financials for the third quarter of 2020, showing a significant decrease in the numbers year-on-year.
In absolute terms, the consolidated revenue for the period was CHF 185.7 million, while it was CHF 230.8 in the same quarter the previous year. That was a year-on-year decline of 14.4 percent at a constant exchange rate.
The Group’s consolidated adjusted revenue took a further hit as it went down by 15.2 percent at a constant exchange rate to CHF 202.4 million. Additionally, the interdealer broking business (IDB) unit of the group declined by 15 percent, and the non-interdealer broking business (non-IDB) slumped by 20.5 percent.
The decline followed the company’s record revenue in the month of March, given the volatility in the markets induced by the stalled economies. Earlier, the Group reported that its profits for the first half of 2020 jumped by 50 percent to touch CHF 48.7 million.
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Less Demand and Stronger Swiss Franc
As pointed out by CFT, the decline in Q3 was fueled by OTC markets slow down in August, strengthening the Swiss franc.
“This recent development must nevertheless be put into perspective of a particularly sustained level of activity recorded during the third quarter of last year,” CFT stressed. “It should also be noted the strengthening of the Swiss franc during this period of uncertainty had a negative impact on revenue at current exchange rates.”
The Group further pointed out that over the first nine months of the year, its consolidated revenue increased by 4.2 percent at constant exchange rates, but at the current exchange rates it decreased by 0.9 percent.
Amid the slowdown, the Group has now increased its focus on cost management, especially by ‘initiating a specific cost-cutting plan in line with recent business trends’.