Compagnie Financiére Tradition launches a share buyback program

Compagnie Financiére Tradition (CFT) has launched a share buyback program that will optimize the broker’s capital allocation. CFT is a Swiss interdealer brokerage company that also owns one of the leading Japanese retail trading platforms known as Gaitame.

Gaitame prepares a 3-year-long buyback program

CFT has issued an announcement revealing a plan to buy back up to 300,000 shares that belong to the company. The program is scheduled to commence in June this year, and it will run until May 2026 at the latest. However, the group company has not mentioned the sum that has been allocated for this program.

The statement released by the CFT has also said that the execution of this program is dependent on market conditions and regulatory approval. The buyback program will also see the shares being repurchased being canceled before shareholder approval is achieved.

“The execution of the program is subject to market conditions and regulatory approvals. The buyback will be executed via a second trading line on the SIX Swiss Exchange. Shares repurchased under the program are expected to be canceled subject to shareholder approval,” the CFT said.

CFT will reward investors with dividends

The share buyback program is not the only initiative that the CFT is working on. The shareholders of the company have also approved a dividend proposal that has been made by the board of directors at the company.

Under this dividend proposal, the group will distribute a cash dividend valued at CHF 5.5 for each bearer share of CFT. The nominal value is CHF 2.50. The group has also announced the distribution of one bearer share for each 100 bearer shares that have been held, and these will be reduced from the earnings that are available.

The CFT stock is currently priced at CHF 120 for every share. The CFT also offers a dividend yield of around 4.6%. CFT is an institution whose headquarters are in Switzerland. The company reported a 4% increase in net profits in the 2022 financial year, which came in at CHF 89.1 million.

The consolidated revenue reported by the company in 2022 also came in at CHF 947.4 million. The announcement released by the company also said that the total amount of dividends stands at CHF 49,031,068.1, while the available retained earnings carried forward stand at CHF 74,135,932, subject to the amount of treasury shares that are held at the dividend detachment date on May 30, 2023.

During the first quarter of the current financial year, CFT reported consolidated revenue of CHF 271.6 million. The revenue was a 9.6% increase compared to what was reported during the previous year.

The revenue that CFT reported from its interdealer brokerage business increased by 13.3% at constant exchange rates. On the other hand, the company’s non-interdealer brokerage business reported a 3% growth. The metrics released by the company during that financial period show that its operations have significantly grown, and it is posting a strong performance.