Swissquote Group Holding Net Profit Doubles in 2014 After MIG Acquisition

Margins increased at Swissquote as the company optimized the costs related to the acquisition of MIG Bank in 2013, as

rp_swissquote-logo-150x150208.pngAccording to an earnings announcement made by Swissquote Group Holding (SWX:SQN), the company’s profit margins increased substantially in 2014, as the broker reported that profits from its operations have more than doubled, while revenues increased 16%.

Net revenues increased by 16.5 percent in 2014 to CHF 145.5 million ($152 million), which is a record high number. Net profit was up 101.8 percent totaling CHF 23.5 million ($24.5 million) owed to the optimization of restructuring costs related to the acquisition of the MIG Bank in 2013.

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That said, the company has already revealed that in the aftermath of the Swiss National Bank’s move to remove the floor from the EUR/CHF exchange rate, it lost close to CHF 25 million, slightly surpassing the profit the company made in 2014.

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The net electronic foreign exchange income at Swissquote Group Holding (SWX:SQN) increased by 43.9 percent to CHF 54.8 million ($56 million) on volumes totaling $1 trillion, which was in line with the company’s expectations for the full year 2014.

The revenue structure remained diversified with electronic foreign exchange and commissions & fees each accounting for about 40 percent of the total, while trading and interest operations contributed 10 percent each.

2015 Outlook

Assets under custody increased by almost CHF 1 billion, totaling CHF 11.562 billion ($12 billion). The Swissquote Group Holding expects net revenues to increase by 15 percent in 2015, while client assets add another CHF billion.

Swissquote’s partnership for foreign exchange order handling with PostFinance, which was announced in May 2014, will be fully launched in the fall of 2015. The broker expects that 60,000 new client accounts and CHF 4 billion of customer funds will be transferred by May 2016.

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