Tradition’s Revenue Surges 9% in Q3 Despite Currency Headwinds

Compagnie
Financière Tradition reported revenue growth of 9.4% at constant exchange rates
in the third quarter, driven by expansion in its core interdealer broking
operations across global markets, the company reported today (Thursday).

Tradition’s Revenue Climbs
9.4% as Interdealer Broking Expands

The Swiss
brokerage, which operates in over 30 countries, posted consolidated revenue
including joint ventures of CHF 278.3 million for the quarter, up from CHF
272.3 million a year earlier. Reported gains were reduced by the Swiss franc’s
appreciation against the dollar and other currencies since January.

Tradition’s
interdealer broking business, which connects institutional traders in
over-the-counter products, grew 10.7% at constant exchange rates during the
quarter. The unit saw activity pick up across all regions and asset classes,
with particularly strong performance in July and September. That momentum
carried into October, the company said.

“The
IDB business recorded growth of 10.7% at constant exchange rates, driven by the
expansion across all regions and asset classes,” the company said in its
quarterly statement.

The results align with the figures reported for the first half of 2025, when revenue increased by 12%.

Third Quarter Performance
by Segment

Japanese Retail Operations
Stumble

The picture
looked different in Tradition’s retail-focused Japanese business, where revenue
fell 25.3% at constant exchange rates. Activity in that segment slowed sharply
in July and August before recovering in September and extending gains into
October.

The Non-IDB
business “declined by 25.3% at constant exchange rates during the quarter,
reflecting a marked slowdown in the sector over July and August, before
returning to growth in September, a trend that continued into October,”
according to the company’s statement.

For the
first nine months of the year, Tradition recorded consolidated revenue of CHF
910.4 million, an 11.3% increase at constant exchange rates compared with CHF
849.3 million in the same period last year.

Currency Impact Masks
Underlying Growth

The gap
between constant-currency and reported figures highlights the impact of foreign
exchange movements on Tradition’s results. Third-quarter reported revenue rose
just 2.2%, while nine-month reported revenue increased 7.2%. The company
generates substantial income in dollars and other currencies that have weakened
against the franc.

Tradition
noted that “reported performance was tempered by the strengthening of the
Swiss franc since the beginning of the year, particularly against the US
dollar.”

Tradition’s
interdealer broking division accounted for CHF 879.2 million of revenue through
September, up 11.0% at constant rates. The retail business contributed CHF 31.2
million, representing 20.4% growth at constant exchange rates despite the
third-quarter decline.

The company
employs more than 2,400 people and brokers transactions across money markets,
bonds, derivatives, equities, commodities and precious metals. Tradition
shares trade on the SIX Swiss Exchange.

This article was written by Damian Chmiel at www.financemagnates.com.



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