CTF Spurs 3% Increase in Gaitame Revenue

The Swiss interdealer broker and operator of a Japanese retail broking giant, Compagnie Financière Tradition (CFT), released its financial report for the first quarter of 2023. The company recorded a consolidated revenue of CHF 271.6 million which showed a 9.6% increase from the previous year’s CHF 247.7 million, or a 14.3% increase when adjusted for the constant exchange rate.

CFT’s solid start for 2023

In their press release, the Group’s consolidated adjusted revenue for the period was CHF 290.5 million. The current period shows a growth of 13% compared to the corresponding period of the previous year.

According to CFT, the first quarter’s activity level remained similar to last year, with consolidated adjusted revenue increasing by 13.0% at constant exchange rates. The growth was driven by the central bank’s monetary tightening policy, which aimed to combat persistent inflation.

CFT has two main business divisions: the interdealer broking business (IDB) and the retail forex trading business in Japan called Gaitame. The Group did not provide exact figures for its two business divisions. However, it did disclose that the IDB division’s adjusted revenue increased by 13.3% at constant exchange rates. In comparison, the non-IDB division’s forex trading business for retail investors in Japan showed an increase of 3%.

CFT’s Solid Growth

CFT’s businesses saw significant growth in 2022, following a lackluster 2021. They reported a net profit of CHF 89.1 million at the fiscal year’s end, representing an increase of 40.3% in constant currencies or 36.5% in current currencies. The company’s annual per-share earnings were CHF 11.83, 34%, and 30.5% higher in constant and current currencies, respectively.

CFT reported that the Group’s operations were positively impacted by a shift in central bank monetary policy, which moved away from quantitative easing and towards rate hikes. This positive impact was felt across all regions and products, including foreign exchange and interest rate products and securities and security derivatives.