Compagnie Financiere Tradition has posted its financial records for the first half of 2021. According to the report, the company experienced a slight drop in its profits and revenues compared to the same period last year.
Net Profit Dropped Slightly
In the first half of the year, Compagnie Financiere had a net profit of CHF 39.1 million, which is 27.2% lower than the CHF 51.5 million. realized in H1 2021.
The reported operating profit was down by 21.6%, going from CHF 58.1 million in 2021 to CHF 43.8 million in 2021.
Also, the consolidated revenue (IFRS) for the Group fell by 9.9% in H1 2021 compared to the revenues from last year. According to the record, the company had IFRS of CHF 452.0 million compared to the CHF 512.8 million it realized in the same period last year.
Compagnie Financiere stated that its increased activities in March and early part of April should be considered when evaluating its performance for the whole of H! 2021. According to the firm, it had an impressive volume of activity in March as it did in the same period last year.
Additionally, it recorded a 13.8% fall in its forex trading business for Japanese-based retail investors. Adjusted revenue from its interdealer broking business (IDB) also fell by 9.8% to CHF 474.5 million in the same period.
The Market Is In A Correctional Phase
The Switzerland-based firm has explained while its net profit dropped significantly for the first half of the year. It noted that the year-over-year (YoY) performance is an indication that the market is in a correctional phase after the unprecedented surge in activities caused by the pandemic.
The company explained that the impact of the COVID-19 pandemic led to high volatility in the market, which has also increased the Group’s revenue. However, the gradual return to normalcy is slowly pushing the market to its usual levels.