Swiss interdealer broker Compagnie Financière Tradition (CFT), which also owns the Japanese retail trading platform Gaitame, is launching a share buyback program to optimize its capital allocation.

Share Buyback Program of Compagnie Financière Tradition

According to the official announcement, the group company will buy back up to 300,000 shares. The program is expected to start in June 2023 and run until May 2026 at the latest. However, the group did not mention the allocated sum for the program.

“The execution of the program is subject to market conditions and regulatory approvals,” the CFT stated. “The buyback will be executed via second trading line on SIX Swiss Exchange. Shares repurchased under the program are expected to be canceled subject to shareholder approval.”

Rewarding Investors with Dividends

Apart from the share buyback program, the shareholders of the group approved the dividend proposal made by its board of directors. The group will distribute a cash dividend of CHF 5.5 per bearer share of CFT with a nominal value of CHF 2.50. Furthermore, “a distribution of one bearer share for every 100 bearer shares held to be deducted from the available earnings.”

At the current stock price of CHF 120 a piece, the CFT has a dividend yield of approximately 4.6 percent.

Switzerland-headquartered Compagnie Financière Tradition reported a net profit of CHF 89.1 million in 2022, which is a 4 percent jump, on consolidated revenue for 2022 to be CHF 947.4 million.

“The total amount of the dividend is CHF 49,031,068.1, and the available retained earnings carried forward is CHF 74,135,932 subject to the amount of treasury shares held at the dividend detachment date (on 30 May 2023),” the announcement added.

Meanwhile, the consolidated revenue of the CFT in the first quarter of the ongoing year came in at CHF 271.6 million, which is an increase of 9.6 percent from the previous year. Revenue from its interdealer broking business jumped 13.3 percent at constant exchange rates, while the non-interdealer broking business grew 3 percent.