Swissquote Reports Revenue Growth in H1, but Drop in Profits Due to MIG M&A
The costs of acquisition and integration of MIG Bank led to an 18% decline in net profit for the Swissquote
Swiss FX broker and online bank, Swissquote, has announced mixed results for the first half of 2014. The acquisition and integration of MIG Bank is behind schedule and is the main reason given by the group for both the growth in revenues and expenses.
Swissquote failed to reach its goal of $500 billion trading volume in H1 (it was actually 12.5% below), which it blamed on low volatility and moved the volume goal to H2 2014.
Join the iFX EXPO Asia and discover your gateway to the Asian Markets
Key Metrics in H1 2014:
Suggested articles
Going Past the Great Wall: Things to Consider When Entering the Asian MarketGo to article >>
- Total net revenue up by 16.8%
- Net profit down by 18%
- New accounts up by 7%
- eForex volume reached $437.7 billion
- Net eForex income grew by 84.7%
- Assets under custody increased by 16.9%
The integration of MIG Bank which was acquired at the end of September 2013 is behind the schedule the group set, but Swissquote now states the integration will be completed by the end of the third quarter of 2014.
Swissquote Results H1 2014:
Leave a Reply
Swissquote/MIG Bank is losing constantly customers/clients. I know from an insider that client accounts and average client assets are depreciating by a factor of 7-8% per month since acquisition of MIG Bank. The reason is very easy: MIG Bank spreads/pricing are/is not competitive anymore! The best indicator for Swissquote´s business is its share price. At the start of the year the share price was at 39 CHF, now at 32,45 CHF.
(comment edited)