Swissquote publishes strong results for first 9 months of 2011 – Forex volume up

In line with its semi-annual report Swissquote continues to see healthy growth in its results. Swissquote fulled merged ACM operationally

In line with its semi-annual report Swissquote continues to see healthy growth in its results. Swissquote fulled merged ACM operationally and into its books and as expected it fuels its growth. Swissquote’s eForex numbers are up on all parameters. Swissquote’s volume is up 7.3% to CHF 36.53 Billion a month however dollar value is down to $41.54B due to exchange rates. eForex assets are up to CHF 130.4 million and client accounts are up 5.7% to 10, 464 accounts at the end of September 2011.

Despite the challenging environment over the past few months, Swissquote can again present a set of impressive growth figures for the first nine months of 2011. Revenues were up by 38.5 percent year-on-year to CHF 100.2 million, net profit by 33.9 percent to CHF 26.3 million, and the number of accounts by 13.8 percent to 184,443. Swissquote is reiterating its full-year growth forecasts announced in July.

All revenue segments contributing to growth 

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All three revenue segments contributed to the strong increase in total revenues to CHF 100.2 million (CHF 72.4 million). In the 3rd quarter of 2011, net fee and commission income returned to substantial quarter-on-quarter growth thanks to an upturn in trading activity on the part of clients from 11.1 to 16.5 transactions per client/year. For the first nine months of 2011 this led to a year-on-year rise of 7.4 percent to CHF 50.2 million (CHF 46.8 million). Interest business remained difficult given the currency situation and the cautious investment policy pursued by Swissquote. Consequently, in spite of an adjustment to interest rates on saving accounts (1.125 to 0.75 percent), interest income was down 4.0 percent in the 3rd quarter of 2011. However, total interest income for the first nine months of 2011 grew by 34.1 percent to CHF 11.6 million (CHF 8.7 million). The above-average growth in trading operations (eForex) is attributable in particular to ACM, which was acquired in fall 2010 and has been fully merged with Swissquote Bank. Revenues expanded by 126.4 percent to CHF 38.4 million (CHF 16.9 million) despite the fact that trading income realized in USD is presently under heavy pressure from the strong CHF. The eForex trading volume came to CHF 313.6 billion in the first nine months.

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Profits developing very consistently

Resulting from revenues of CHF 100.2 million and operating expenses of CHF 66.6 million, the operating profit of CHF 33.7 million (CHF 24.6 million) was 36.7 percent higher than the previous year’s figure. The 39.4 percent rise in operating expenses is due primarily to the 48.7 percent increase in personnel expenses (ACM acquisition). Net profit was up 33.9 percent to CHF 26.3 million (CHF 19.6 million). In the first nine months, the operating profit margin stood at 33.6 percent (34.0 percent) and the net profit margin at 26.2 percent (27.1 percent). The balance sheet total increased by 13.9 percent to CHF 2.604 billion and total equity by 19.1 percent to CHF 224.1 million. The core capital ratio (tier 1) stood at 22.35 percent.

Stable growth in number of accounts and volume of assets under custody in 3rd quarter

Compared with the corresponding year-back period, the total number of accounts rose by 13.8 percent to 184,443 in the first nine months of 2011. The breakdown is 156,196 trading accounts (+7.1 percent), 17,167 saving accounts (+28.6 percent), 10,464 eForex accounts (+293.1 percent), and 616 ePrivate Banking accounts (+336.9 percent). In contrast with a somewhat weaker 2nd quarter, growth in the number of accounts again stabilized at the desired level in the 3rd quarter of 2011, up by 4,745. Year-on-year, assets under custody were 1.6 percent lower at CHF 7.280 billion (CHF 7.397 billion). The decrease reflects the market-related decline in the value of the portfolios last year. As at 30 September, assets of CHF 6.658 billion were held in trading accounts, CHF 470.0 million in saving accounts, CHF 130.4 million in eForex accounts, and CHF 21.5 million in ePrivate Banking accounts. On a year-on-year comparison, net new monies were 26.9 percent lower at CHF 799.3 million (CHF 1.1 billion). The weak 2nd quarter (CHF 94.0 Mio.) was responsible for this decline, while net new monies in the 3rd quarter came to CHF 412.0 million. The level of net new monies of at least CHF 1 billion expected for the year as a whole should therefore be reached. 

Swissquote/ACM volume and deal size can be found in the latest Forex Magnates Retail Forex Industry Report.
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