Compagnie Financiere Tradition SA (SWX:CFT), the Switzerland-based interdealer broker, earlier today posted its financial metrics for full year 2014.
The group confirmed that the business environment in 2014 was challenging, but nevertheless managed to see a 47.5% jump in its annual consolidated net profit to CHF 32 million (USD 31.9m/EUR 30m). The group share amounted to CHF 27.7 million, marking a 82.7% increase year-on-year in constant currency terms.
The board is recommending a dividend of CHF 3 per share that could be paid in cash or in shares.
Reported operating profit for 2014 was CHF 41.2 million compared with CHF 32.1 million in 2013, an increase of 31.1% at constant exchange rates.
The adjusted underlying operating profit (stripping out one-off costs) was CHF 67.9 million, compared with CHF 60 million in 2013, marking an increase of 15.1% in constant currencies. The IDB (interdealer broker) adjusted underlying operating profit was up 22.3% in constant currencies to CHF 65.8 million.
The Group’s consolidated adjusted revenue was CHF 894.5 million compared with CHF 934.1 million in 2013, a drop of 3.4% in constant currencies.
Adjusted revenue from IDB activity fell by 3.1% in constant currencies with a decrease in all asset classes with the exception of foreign exchange products and emerging markets. However, results by asset classes varied according to the geographic regions.
In its announcement, the group commented that in the face of the challenging first six months of 2014, it managed to posts some solid financial metrics thanks to improved market environment from the month of September onwards. One more positive factor was the development of the activities and positioning of Tradition SEF, especially through Trad-X, Tradition’s market leading hybrid trading platform for interest rate swaps.
Financial Metrics for 2015
Since the beginning of the new year, the Group’s consolidated adjusted revenue is up by more than 3% at constant exchange rates against the same period in 2014. The Group says it will continue to focus on the control of its costs in order to increase its flexibility while maintaining its investments in technologies.
The official announcement by the group can be read here.