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Swiss brokerage Compagnie Financière Tradition (CFT) reported on the outcome of the first half of the year. The company’s revenues were lower by 3.3 percent to

$428 million (CHF 411 million). Operating profits were higher at $38.7 million (CHF 37.2 million), driven y the institutional business of the company.

The stability of the inter-dealer business of CFT was the main driver for the relatively stable performance of the company. The retail-focused Gaitame.com business in Japan posted a substantial decline in revenues and profitability.

During the first six months of 2017, the retail shop reported a massive decrease in revenues. The Japanese subsidiary’s income in constant currencies declined 28.2 percent year-on-year to $14.7 million (CHF 14.1 million). Profitability also declined with margins coming in at 24.8 percent, a substantial change to last year’s 37.2 percent. Operating profits for Gaitame.com halved to $3.64 million (CHF 3.5 million).

The disappointing results for the retail forex subsidiary of CFT are due to lower volatility in the first months of the year. The Japanese yen ranges that are typically key to retail traders in Japan were much tighter than a year ago.

Inter-Dealer Broking Business

The inter-dealer broking business (IDB) of CFT held strong driven by sharp activity increase inc Continental Europe and the MENA region. Total adjusted revenue was marginally lower by 2 percent to $449 million (CHF 431.6 million). Adjusted revenue from the IDB increased 0.8 percent in constant currencies.

Profitability of the IDB business remained stable with margins ticking higher by 0.3 basis points to 9.2 percent. Adjusted underlying operating profits ticked marginally higher by 1.3 percent to $41.3 million (CHF 39.9 million).