Swissquote posted record-high net revenues, and all-time client assets peak.
Despite market challenges, Swissquote revises its full-year guidance upward.
Amidst a
challenging investment environment during the first half of 2023, Swissquote
has defied the odds, surpassing its initial expectations. It reported record net revenues
and a considerable increase in client assets. Total operating profit reached CHF 124.87
million, growing by more than CHF 34.2 million compared to the same period a
year earlier.
Swissquote Achieves Record
Figures amid Challenging Investment Landscape
Despite
decreased trading activity across the industry, Swissquote's net revenues soared to
CHF 265.6 million, which is a jump of 32.8% compared to the previous year.
Interestingly, transaction-based revenues, such as brokerage income, did not
lead the growth.
Instead,
non-transaction-based revenues, including net interest income and custody fees,
took center stage. In fact, due to the prevailing low market volatility, these particular revenues overtook transaction-based earnings for the first time. With a significant
rise of 587.6% in net interest income amounting to CHF 102.7 million, which is primarily
attributed to a higher interest rate setting.
This
trajectory led to the firm registering its second-highest pre-tax profit. As a
result, the net profit margin improved to 40.1%, reporting an increase in growth from 38.6% in the
prior year. Total expenses rose 30.0% to CHF 138.4 million, which was influenced
primarily by marketing and payroll costs. However, the company's profitability
metrics remained robust.
"Net
eForex income saw an increase of 1.1% to CHF 54.9 million despite a period of
low market volatility. Net trading income fell by 10.8% to CHF 26.7 million,
due again to lower trading volumes," the company commented in a press release.
Client Assets Hit a New
Peak
Over the
past year, Swissquote saw its client base grow 6.4%, raising the number of
client accounts to 555,266. These figures inflated further when solidified with client assets by 9.9%, marking a new record at CHF 56.9 billion. Even though net
new money dipped to CHF 3.0 billion, it remained organically generated, which is distinct from last year's acquisition-related inflow.
Swissquote's
balance sheet also demonstrated stability and liquidity. The total assets
ascended 3.5% to CHF 10.6 billion as of 30 June 2023.
"At
the same time, total equity increased by 6.8% to CHF 791.6 million. The capital
ratio remained stable at 25.5 % compared to 24.8% at the end of last year. The
balance sheet liquidity remained solid, with the liquidity coverage ratio
evolving on a monthly basis in the region of 400%, significantly above the 100%
minimum regulatory requirement," Swissquote added.
Swissquote Revises Full-Year
Guidance
Despite
potential market sentiment stagnation for the latter half of 2023, Swissquote
remains optimistic. Given its strong first-half performance, the company has
updated its guidance for the full year. The revised projection is estimated at around CHF 530
million in net revenues and a pre-tax profit close to CHF 250 million.
Swissquote's
progress was not solely financial. The firm received acknowledgement from
Sustainalytics for its dedication to sustainability, enhancing its ESG Risk
rating from 'medium risk' to 'low risk'.
"This
change is a recognition of Swissquote's recent sustainability initiatives and
of the efforts made in recent months to improve its non-financial reporting,"
the company concluded.
The company
has recently launched a new investment and savings solution, offering customers
up to 2% interest on cash deposits. In addition, it has partnered with
Stableton, an investment firm specializing in private markets, to launch a
bank-active managed certificate (ACM) for retail investors in Switzerland.
Amidst a
challenging investment environment during the first half of 2023, Swissquote
has defied the odds, surpassing its initial expectations. It reported record net revenues
and a considerable increase in client assets. Total operating profit reached CHF 124.87
million, growing by more than CHF 34.2 million compared to the same period a
year earlier.
Swissquote Achieves Record
Figures amid Challenging Investment Landscape
Despite
decreased trading activity across the industry, Swissquote's net revenues soared to
CHF 265.6 million, which is a jump of 32.8% compared to the previous year.
Interestingly, transaction-based revenues, such as brokerage income, did not
lead the growth.
Instead,
non-transaction-based revenues, including net interest income and custody fees,
took center stage. In fact, due to the prevailing low market volatility, these particular revenues overtook transaction-based earnings for the first time. With a significant
rise of 587.6% in net interest income amounting to CHF 102.7 million, which is primarily
attributed to a higher interest rate setting.
This
trajectory led to the firm registering its second-highest pre-tax profit. As a
result, the net profit margin improved to 40.1%, reporting an increase in growth from 38.6% in the
prior year. Total expenses rose 30.0% to CHF 138.4 million, which was influenced
primarily by marketing and payroll costs. However, the company's profitability
metrics remained robust.
"Net
eForex income saw an increase of 1.1% to CHF 54.9 million despite a period of
low market volatility. Net trading income fell by 10.8% to CHF 26.7 million,
due again to lower trading volumes," the company commented in a press release.
Client Assets Hit a New
Peak
Over the
past year, Swissquote saw its client base grow 6.4%, raising the number of
client accounts to 555,266. These figures inflated further when solidified with client assets by 9.9%, marking a new record at CHF 56.9 billion. Even though net
new money dipped to CHF 3.0 billion, it remained organically generated, which is distinct from last year's acquisition-related inflow.
Swissquote's
balance sheet also demonstrated stability and liquidity. The total assets
ascended 3.5% to CHF 10.6 billion as of 30 June 2023.
"At
the same time, total equity increased by 6.8% to CHF 791.6 million. The capital
ratio remained stable at 25.5 % compared to 24.8% at the end of last year. The
balance sheet liquidity remained solid, with the liquidity coverage ratio
evolving on a monthly basis in the region of 400%, significantly above the 100%
minimum regulatory requirement," Swissquote added.
Swissquote Revises Full-Year
Guidance
Despite
potential market sentiment stagnation for the latter half of 2023, Swissquote
remains optimistic. Given its strong first-half performance, the company has
updated its guidance for the full year. The revised projection is estimated at around CHF 530
million in net revenues and a pre-tax profit close to CHF 250 million.
Swissquote's
progress was not solely financial. The firm received acknowledgement from
Sustainalytics for its dedication to sustainability, enhancing its ESG Risk
rating from 'medium risk' to 'low risk'.
"This
change is a recognition of Swissquote's recent sustainability initiatives and
of the efforts made in recent months to improve its non-financial reporting,"
the company concluded.
The company
has recently launched a new investment and savings solution, offering customers
up to 2% interest on cash deposits. In addition, it has partnered with
Stableton, an investment firm specializing in private markets, to launch a
bank-active managed certificate (ACM) for retail investors in Switzerland.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
1 week to go until FMAS:24 kicks off and we couldn't skip our interviews with some of this year's sponsors 🤩 Starting off strong with Hannelé De Necker, CEO OF IFX Brokers.
See you there!
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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1 week to go until FMAS:24 kicks off and we couldn't skip our interviews with some of this year's sponsors 🤩 Starting off strong with Hannelé De Necker, CEO OF IFX Brokers.
See you there!
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
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Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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FMAS:24 | Sneak Peak
FMAS:24 | Sneak Peak
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
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Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
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Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa