FY 2023
RESULTS
PRESENTATION
22 March 2024 | 2023 |
Lausanne | |
Summary of CFT's FY2023 key financial metrics
Strong financial performance in spite of CHF strengthening further
Variations in constant currencies
+9.5%
CHF 1,054m
Revenue*
Productivity up 12%
+17.1%
CHF 128m
Operating
profit*
Margin: 12.1%
+15.9%
CHF 94m
Net profit - Group share
Basic earnings
per share: CHF 12.71
+6.3%
CHF 454m
Shareholders'
equity**
+28.6%
CHF 260m
Net cash position*
2
*Including group share of joint ventures
**Before deduction of treasury shares of CHF 27.5m. Reported shareholders' equity amount to CHF 426.0m as at 31 December 2022
FY2023 confirming the longer term track record
A long established Swiss group focused on critical size and sound balance sheet
Consolidated revenue, shareholders' equity and net cash (including share of JVs) | 1 |
1200 | 600 |
mCHF |
Focus on organic growth and sound financial position:
- Strong net cash position
- Growing shareholders equity with low level of intangibles
2
1000 | 500 |
800 | 400 |
3
600 | 300 |
4
400 | 200 |
200 | 100 | |||||||||||||
0 | - | |||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | ||||
Total equity | Net cash at constant rate | Revenue at constant rates | ||||||||||||
Opportunities arising from structural developments
- Data and Analytics dedicated business line
- Data science lab since early 2021 with state of the art Data platform
- Hybridization in the context of digitalization
- Blurring of traditional market boundaries
Developed expertise in cost management
- Cultural change without losing market share
Consistent dividend distribution to shareholders
- Complemented by share buy-back program
A new ambition
- A change of paradigm from the normalization of the Central banks monetary policies
- Creating long term value through growth, profitability and cash conversion
3
CFT's track record of delivering return for shareholders, a demonstration of the Group's DNA, long term vision and ambition
A total return of 17.4% p.a. with dividends reinvested in shares since 1 January 1997
Total Return Analysis (TRA) - 1/1/1997 and 21/3/2024
4
Source: Bloomberg
Consistent dividend policy
Cumulative dividends of CHF 50 paid during 2013 to 2023 excluding distribution of treasury shares
Dividend payout trend 2013 to 2023 | |||||||||||
in CHF | |||||||||||
Dividend CHFin | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 | 5.5 | |||||
4.5 | |||||||||||
3.0 | 3.5 | ||||||||||
2.5 | |||||||||||
2013 | 2014 | 2015 | 2016* | 2017 | 2018* | 2019* | 2020* | 2021* | 2022* | +9.1% | |
Payout %in | 106% | CHF 6 | |||||||||
71% | 57% | 59% | 72% | 67% | 58% | 57% | FY2023 Cash | ||||
52% | 47% | ||||||||||
dividend1) | |||||||||||
2013 | 2014 | 2015 | 2016* | 2017 | 2018* | 2019* | 2020* | 2021* | 2022* | ||
Payout: 47% | |||||||||||
6.5% | Yield: 4.6%2) | ||||||||||
5.4% | 5.5% | 5.2% | 4.8% | 4.7% | 5.0% | 4.7% | 5.0% | ||||
4.4% | |||||||||||
Yield in % | |||||||||||
2013 | 2014 | 2015 | 2016* | 2017 | 2018* | 2019* | 2020* | 2021* | 2022* |
*An additional distribution of one treasury share for shares held above the dividend in cash (2022 : 1:100, 2021 : 1:100, 2020 : 1:75,
2019 : 1:50, 2018 : 1:35; 2016 : 1:25)
-
1) Subject to shareholders approval at the 21 May 2024 General Assembly
2) Value based on 21 March 2024 clsing share price of 130 CHF per share
Normalization of central banks monetary beneficial to the Group's operations
Momentum from organic growth strategy; impact from CHF strength on reported revenue and profitability
+10.6% | +9.5% | +17.1% | +19.7% | +16.1% | +13.4% | +15.9% |
1 028.6
950.8 947.4
1 053.9
982.4
873.6 | 2023 | margin | ||||||||||
2022 | margin | |||||||||||
12.1% | 2021 | margin | ||||||||||
11.4% | 10.7% | |||||||||||
9.9% | 127.7 | 9.9% | 127.2 | |||||||||
117.4 | 120.1 | |||||||||||
8.4% | 105.5 | 101.1 | ||||||||||
94.1 | 94.2 | 97.4 | 94.4 | |||||||||
89.1 | ||||||||||||
85.0 | ||||||||||||
73.2 | 71.5 | 65.3 | ||||||||||
RevenueOperating profit including Reported operating profit Profit before taxNet profitNet profit Group share
share of JVs | ||||
Basic earnings | ||||
per share | 811.76.83 | 12.71 | ||
- Supported by organic growth in particular in Energy and Commodities
- Brokers improved productivity up +12.4%
6
- Group net cash position including share of JV up 28.6% in constant currencies or CHF approx. 60mm to CHF 260m (total gross cash reaching CHF 470m).
- Net interest income up CHF 9.4m with income from gross cash investments
- Proposed cash dividend up close to 10% to CHF 6.0 per share; Share buybacks set to accelerate in 2024
- Continued momentum in 2024
(variation y-o-y in constant currency) | (Revenue including share of JV variation y-o-y in constant currency) |
One of only 3 global Wholesale and Institutional brokerage firms
A diversified transactional platform servicing the world's largest banks and non bank institutions
The world's largest banks and non bank institutions, looking for quality of information and trusted relationships to confidently trade large transactions
Tradition market place
Clients | Desks |
7'500+ 300+
Asset classes Product groups | Products |
5 25+ 200+
Expertise in complex transactions, illiquid instruments, difficult market conditions
No position taking and associated balance sheet risk
Activities regulated by local authorities in almost all countries
A business model based on high volume x low commission rates
Annual # of trades | Currencies |
~3 million | 80 |
Annual notional volumes
~250'000 billion (1tr/day)
7
Critical market infrastructure component in sourcing liquidity and price discovery
Growth in both wholesale and retail businesses in constant currencies Gaitame reported revenue impacted by JPY weakening
Reported revenue and revenue including share of JV
M CHF | Joint ventures | +9.5% | |||
Subsidiaries | |||||
(reported) | |||||
1 028.6 | 1 053.9 | ||||
950.8 | 81.2 | 71.5 | |||
77.2 |
Revenue including share of JV by business
Wholesale | +9.6% | M CHF | |||||
917.0 | 994.7 | 1 022.5 | |||||
487.2 | +7.6% | 488.5 | |||||
442.5 | |||||||
H2 | |||||||
H1 | 507.5 | +11.6% | 534.0 | ||||
474.5 | |||||||
2021 | 2022 | 2023 |
873.6
947.4982.4
Retail | +5.5% | ||||
33.8 | 33.9 | 31.4 | |||
H2 | -7.3% | ||||
17.3 | 16.3 | 13.0 | |||
H1 | |||||
+18.7% | |||||
16.5 | 17.6 | 18.4 | |||
2021 | 2022 | 2023 | 2021 | 2022 | 2023 |
8
(All variation at constant rates)
Diversified revenue portfolio both in terms of geographies and asset classes
Positive revenue development trend reflected in all regions
Breakdown by region in 2023
United | |
Asia Pacific; | Kingdom; |
26% | 26% |
Americas;
33%
Continental Europe; 15%
including JVs by
+4.7% | +20.5% | +4.4% | ||
Trend by region
Non IDB | APAC | Americas | CE | UK | |||||
4% | 3% | 3% | |||||||
24% | 24% | 23% | |||||||
28% | 31% | 33% | |||||||
12% | 14% | 15% | |||||||
Revenue share of region
1028.6
1'053.9
32% | 28% | 26% |
2021 | 2022 | 2023 |
2022 | EMEA | Americas | Asia-Pacific | FX impact | 2023 |
9
Diversified revenue portfolio both in terms of geographies and asset classes
Strong improvement in Energy and Commodities products supported by organic growth
Currencies and | Securities and | Energy and | ||||
rates | security derivatives | Commodities | Retail FX | |||
• | Interest rate | • | Government | • | Oil | • Gaitame.com - |
derivatives | bonds | • | Electricity | Online retail forex | ||
(eg IRS, IRO) | • | Corporate bonds | • | Gas | brokerage | |
• | Money markets | • | Credit derivatives | • | Metals | |
• | FX forwards | • | Repos | • | Environmental | |
(o/w NDFs) | • | Equities and | • | Energy C&I | ||
• | FX options | equity derivatives |
- Futures and options
by | +0.5% | +8.0% | +32.7% | ||||||||
Wholesalerevenue shareincludingof JVs product | |||||||||||
994.7 | 1022.5 | ||||||||||
2022 | Currencies and Rates | Securities and | Energy, | FX | 2023 | ||||||
Derivatives | Commodities and | ||||||||||
Other |
Breakdown by product in 2023
Non IDB; 3%
IDB: 97%
Energy; 23%
Currencies &
Rates; 41%
Securities;
33%
Trend by product
Non IDB | Energy | Securities | Currencies & Rates | |||||
4% | 3% | 3% | ||||||
20% | 20% | 23% | ||||||
32% | 32% | 33% | ||||||
44% | 45% | 41% | ||||||
2021 | 2022 | 2023 |
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Disclaimer
CFT - Compagnie Financière Tradition SA published this content on 22 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 March 2024 13:48:16 UTC.