In the first half of 2024, Swissquote reported net revenues of CHF 316.9 million, a 19.3% increase compared to the previous year. The company's pre-tax profit reached CHF 169.7 million, marking a 35.9% rise.
Client assets also saw significant growth, hitting CHF 68.0 billion, up 19.6% from the previous year. Net new money was CHF 3.8 billion. Swissquote has adjusted its 2024 pre-tax profit target to CHF 320 million.
Trading Rises, eForex Falls
The company benefited from increased net interest income due to high interest rates and higher cash deposits. Trading activity improved, with a 21.9% rise in transactions. Net crypto assets income surged by 369.0%, driven by growth in the crypto market. However, net eForex income declined by 14.2% due to low market volatility .
Total expenses grew by 6.3% to CHF 147.1 million. The pre-tax profit margin improved to 53.5%, while the net profit margin rose to 45.6%. Swissquote added over 36,000 new client accounts in just six months, surpassing the total for all of 2023. The mobile finance app Yuh saw its accounts grow to 235,000, a 58.9% increase, with client assets reaching CHF 2.0 billion, up 103.2%.
The company maintains a strong capital position, with total equity at CHF 1.0 billion, a 10.7% increase. The capital ratio stands at 25.9%, well above the regulatory limit.
Earlier Report: 2024 Targets and 2023 Performance
Swissquote had set a target to achieve annual revenue of CHF 595 million and a pre-tax profit of CHF 300 million for 2024, as reported by Finance Magnates. This guidance followed a strong performance in 2023, where revenue increased by 30.2% to CHF 531.4 million, and pre-tax profit rose by 26% to CHF 270.9 million. The company ended 2023 with record financial results.
In 2023, Swissquote generated CHF 213.1 million from interest income and saw resilient cash deposits, which made up 15% of total client assets. For the first time, non-transaction-based revenues 58% surpassed transaction-based revenues 42%.
Despite the robust guidance, Swissquote anticipated potential impacts on interest income from possible policy rate cuts. However, the company noted an “upswing in trading optimism” beginning in the last quarter of 2023.
