DESPITE THE CHALLENGING ECONOMIC CLIMATE NET PROFIT OF OVER CHF 30 MILLION AND INCREASED DIVIDEND

 

 

 

 

Consolidated turnover was CHF 791.5 million in 2002, against CHF 829.3 million in 2001, for a rise of 0.8% in constant terms. Strong growth in the Group's currency options, equity derivatives and commodities sectors offset the decline in interest rate activities, which were negatively impacted by low volatility in these markets.

 

Consolidated operating profit was CHF 54.4 million in 2002, against CHF 85.1 million in the previous period, reflecting an operating margin of 6.9% of consolidated turnover, compared with 10.3% in 2001. This 2002 result includes insurance payouts of CHF 6.0 million to compensate for income losses sustained in 2001 in the wake of the September 11 attacks.

 

Underlying the global decline in consolidated operating margin was a mixed performance in the Company's business sectors:

 

HTS, a broker in equities, bonds and futures, had a disappointing first half of the year, having been hard hit by the dismal trading climate in the equities markets. Consolidated operating loss for the full-year was CHF 8.4 million, weighed down by losses incurred by HTS's German subsidiary, compared with a consolidated operating profit of CHF 6.6 million in 2001.

 

TSH, a broker in interest rates and money markets, contributed CHF 41.1 million to consolidated operating profit, down from CHF 54,9 million in 2001. TSH had benefited from an exceptionally buoyant market for interest rate activities in 2001, on the back of successive interest rate cuts initiated by the Fed. In 2002, low and stable interest rates worldwide pushed revenues on the interest rate markets down by 8.0%, leading to a deterioration in the operating profitability of these activities.

TFS, a broker in currency options, equity derivatives and commodities, contributed CHF 19.1 million to consolidated operating results in 2002, compared with CHF 19.9 million last year. Underlying this relative stability was a good performance in currency options and equity derivatives, offset by a sharp slowdown in energy products, which was more pronounced in the second half as the shockwaves from the Enron affair impacted the markets.

 

 

Consolidated profit on ordinary activities before tax was CHF 77.7 million, against CHF 104.8 million in 2001. This result takes account of financial income of CHF 23.3 million in 2002, against CHF 19.7 million in the previous period, including net profit on disposals of portfolio securities of CHF 25.9 million during the year. Compagnie Financière Tradition booked an exceptional charge of CHF 1.5 million in connection with the sale of its subsidiary, EBFL.

 

Consolidated net profit stood at CHF 39.9 million, against CHF 61.0 million in 2001. The share of net profit attributable to minority interests amounted to CHF 8.1 million, against CHF 14.3 million in 2001.

 

Group share of net profit amounted to CHF 31.8 million in 2002 against CHF 46.7 million last year. This result generated a return on consolidated shareholders' equity of 16.8%.

 

Consolidated shareholders' equity stood at CHF 235.1 million at 31 December 2002, CHF 196.1 million of which was Group share, for a consolidated cash position and marketable securities net of borrowings of CHF 181.5 million.

 

Despite the challenging economic climate and financial markets in sharp decline, the Board of Compagnie Financière Tradition will be recommending to the annual general meeting a dividend of CHF 3.0 (CHF 2.0 in 2001) a share, plus one bonus share for every 50 shares held.

 

 

 

 

Lausanne, 19 March 2003

 

 

 

 

The Press Release can be downloaded in PDF format from the following link: