Swissquote Reports Blowout Earnings, eFX Volumes Second Highest on Record

The company recently launched Bitcoin trading, becoming the first bank in Europe to deliver such an offering to its clients.

Swissquote’s shares have hit their highest level since September 2014, as the company reported a blowout first half of 2017. The firm’s net revenues increased to CHF 89.1 million in the six months that ended on the 30th of June 2017. The number is higher by 19 percent when compared to the second half of 2016 and by 18 percent when compared to the first half of last year.

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For the same period operating revenues rose 17.7 percent to CHF 90.5 million ($92.8 million) driven by fees, commissions and electronic FX trading. Pre-tax profits hit 21.4 million with margins reaching 24 percent.

Client assets reached a new all time record high of CHF 21.2 billion ($21.7 billion). eForex revenues hit a new all time high of over CHF 32.6 million, which is higher by 16.5 percent when compared to the same period a year ago.

The number of eForex accounts grew year-on-year by 32 percent as total trading accounts and saving accounts marked yearly declines. The company also continued capitalizing on its robo-advisory ePB accounts with those reaching 1,652, a number which is higher by 15 percent when compared to last year.

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Trading volumes in FX reached CHF 494.4 billion during the quarter, a number which is higher by 14 percent when compared to the second half of 2016.

The company recently launched Bitcoin trading, becoming the first bank in Europe to deliver such an offering to its clients.

Swissquote and Plus500 Mark Massive Gains in H1

While a significant part of the retail trading industry experienced a decline in trading volumes in the first half of 2017, Swissquote is reporting a different picture. There is still time before more first half reports from other publicly listed companies come in, but a trend in the industry is becoming apparent.

While some small brokers are struggling to find enough clients to maintain their profit margins, Swissquote is the second publicly-listed company from the industry reporting record revenues and profits.

Earlier this week, Plus500 reported a massive spike in financial metrics, with the company managing to cut costs at a time when it maximized revenues. The company’s shares recovered all the losses that occurred in the aftermath of the FCA 1:50 leverage cap announcement in December.

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