CFT: 2017 Annual Results - Reported operating profit up 4.8%

Net profit
Net profit benefitted from a decrease in net interest expense of CHF 1.9m for the year. However, it was impacted by net foreign exchange losses of CHF 1.3m, representing a negative variation of CHF 6.3m compared to last year. Thus, the Group posted a net financial expense of CHF 4.4m against CHF 2.1m in 2016.

Furthermore, the US tax reform, from which a positive effect is expected in the future, generated a one-off tax expense of CHF 3.0m in 2017. The consolidated tax charge for the year was CHF 16.4m against CHF 15.1m in 2016, for an effective tax rate of 28% against 26% respectively.

Consolidated net profit was CHF 48.6m compared with CHF 52.9m in 2016 with a Group share of 
CHF 46.4m against CHF 50.4m in 2016, a decrease of 7.4% at constant exchange rates.

Balance sheet
The Group maintained its focus on a sound balance sheet with a strong capital position while keeping a low level of intangible assets and a strong net cash position. Indeed, before deduction of treasury shares of CHF 26.6m, consolidated equity amounted to CHF 425.0m at 31 December 2017 with an adjusted cash of CHF 217.6m, including our share of net cash held by joint ventures.

At 31 December 2017, consolidated equity stood at CHF 398.4m (31 December 2016: CHF 380.3m) of which CHF 382.9m was attributable to shareholders of the parent (31 December 2016: CHF 365.4m). Total adjusted cash, including financial assets at fair value, net of financial debt, was CHF 137.9m at 31 December 2017 against CHF 143.2m at 31 December 2016.

Dividend
At the Annual General Meeting to be held on 24 May 2018, the Board will be seeking shareholders' approval to pay a cash dividend of CHF 5.00 per share (yield close to 4.8%¹) up by more than 11% compared to the previous year (CHF 4.50 per share).

Outlook
After an increase of more than 5% in constant currencies in the second semester 2017, the Group's consolidated adjusted revenue showed a double-digit increase in January and February 2018  compared to the same period in 2017. At this stage, it is still too early to confirm a real trend in the development of the Group's business. Furthermore, the Group will remain focused on external and organic growth opportunities in order to further enhance its product portfolio, against a backdrop of advanced consolidation in the industry around three global players, of which Compagnie Financière Tradition.

Annual report
The 2017 annual report of Compagnie Financière Tradition SA will be available on 27 April 2018 on the Company's website at http://tradition.com/financials/reports.aspx

¹ At 15 March 2018: CHF 104.00 per share at closing

About TRADITION

Compagnie Financière Tradition SA is one of the world's largest interdealer brokers in over-the-counter financial and commodity related products. Represented in 28 countries, Compagnie Financière Tradition SA employs more than 2,225 people globally and provides broking services for a complete range of financial products (money market products, bonds, interest rate, currency and credit derivatives, equities, equity derivatives, interest rate futures and index futures) and non-financial products (energy and environmental products, and precious metals). Compagnie Financière Tradition SA (CFT) is listed on the SIX Swiss Exchange.

For more information, please visit www.tradition.com. 

MEDIA CONTACTS

Patrick Combes, President 
Compagnie Financière Tradition SA 
+41 (0)21 343 52 22 
actionnaire@tradition.ch

Rohan Sant 
Voxia communication
+41 (0)22 591 22 63
rohan.sant@voxia.ch