Swiss bank and brokerage company Swissquote has achieved a new milestone in its corporate history. Last year marks a new record for the company both in terms of revenues and profits.
Swissquote not only delivered on its guidance issued in the first half of 2018 but exceeded it when it comes to the bottom line.
While we are yet to see the details from the company, which will be posted in early March, the Swiss brokerage posted its top and bottom line figures for the second half of last year.
Total earnings in 2018 increased by 15 percent year-on-year to CHF 214 million ($220 million). Pre-tax profits for the same period rose by 16 percent on a yearly basis, coming in at CHF 53.5 million ($55 million).
The results are not including any figures from Internaxx, which Swissquote acquired last year. The deal is still subject to regulatory approval by the end of Q1 2019.
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High Volatility and Insulation from ESMA
The strong performance of Swissquote in 2018 should be attributed to two main factors. First and foremost, a massive increase in volatility across financial markets drove rising trading activity.
Global stock markets tanked last year, leaving investors with few options to hedge their losses. Commodities declined sharply led by oil, while lackluster bond markets performance didn’t help risk-parity strategies.
Another major factor helping Swissquote’s bottom line was its insulation from the impact from the new ESMA regulations. The company’s Swiss banking license permits it to provide higher leverage when compared to EU-based peers.
Clients across the EU have been looking for ways to continue trading with high leverage. The position of Swissquote, Dukascopy, and IG and Saxo Bank’s local offices in Switzerland have granted the firms a regulatory advantage when compared to its peers.
Further uncertainty down the line and what seems to be the peak in US interest rates are positives for market volatility. The present market conditions are warranting further solid results for the Swiss broking company.