Swiss inter-dealer brokerage group Compagnie Financière Tradition (SIX: CFT) today released its H1 2015 financial report showing impressive growth in profits compared to the same period the previous year despite only minor changes to revenue.
CFT’s reported operating profit increased by 35.6% to CHF 35.9m for a margin of 8.4% compared with CHF 26.8m and a margin of 6.3% respectively in the first-half of 2014. Consolidated net profit was CHF 25.0m compared with CHF 18.0m in 2014, with a share of CHF 21.8m against CHF 16.4m in 2014, an increase of 36.7%.
The group’s adjusted consolidated revenue was CHF 457.2m compared with CHF 452.3m in 2014, a rise of 2.2%. The adjusted revenue from CFT’s inter-dealer broking business was up 1.1% with a significant rise in activity levels in the Asia-Pacific region and in commodities across all regions. Revenue from the online forex trading platform for retail investors in Japan, Gaitame.com, was up by 64.5% compared with first-half 2014.
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The report explains that CFT faced a varying market environment in the first six months of 2015. Activity levels were generally more stable although there were differences among the geographic regions and asset classes. The group says it benefited from increased volatility in a number of markets while others remained under pressure from the prolonged low interest rates and a continued evolving market structure as a result of regulatory developments.
Against this backdrop, CFT posted consolidated revenue for the first six months of CHF 426.6m against CHF 425.4m in the first-half of 2014, a rise of 0.3% at current exchange rates or 1.1% in constant currencies. After a first quarter rise of 2.8% compared with the equivalent period last year, consolidated revenue decrease 0.8% at constant exchange rates during the second quarter.
CFT also says that it has focused on controlling costs by implementing measures to reduce fixed costs. The pay ratio of brokers now stands at 57.0% of revenue, with variable remuneration accounting for close to 47% of total pay against 58.3% and 44% respectively for the same period last year.