Swiss brokerage Swissquote has announced that the company is not likely to meet its 10 percent growth target for 2016. The company is expecting total earnings to increase by 2.5 percent to around CHF150 million ($148.4 million). The bottom line of the brokerage is expected to be around CHF 22.5 million with a pre-tax profit margin of about 15 percent.
The company has reported strong growth in its client base as it added 2,300 clients and the assets under management held at the firm increased by CHF1 billion ($990 million).
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The earnings guidance which the company released after the H1 2016 report has set the yearly target to CHF160 million. Despite pockets of volatility around Brexit, the U.S. election and the political instability in Turkey, trading activity amongst clients of the Swiss company remained subdued, especially in the electron ix FX segment.
Swissquote highlights that it still has substantial growth potential, especially emanating from its white labeling business. Commenting on the earnings guidance note that the company released this morning, the CEO of the firm Mark Bürki said: “The demand for innovative digital banking solutions is very strong and Swissquote is very well placed in this area with its advanced technology.”