Swissquote H1 profit surges, but crypto revenue dips +60%

abdelaziz Fathi

Swissquote Group, Switzerland’s provider of online trading services, reported that its H1 revenues rose by nearly a third from a year ago even as clients’ interest in trading stagnated.

Swissquote

The online bank reported its operating revenue for the 6-month period ending June 30, 2023, at a record of 265 million Swiss francs ($302 million), up 33 percent from 205 million Swiss francs ($217 million) in 2022.

The bank, based in Gland, western Switzerland, said its pre-tax profit came in at CHF 125 million ($142 million) for the half year. This figure was 38 percent higher from the CHF 90.7 million ($96.4 million) it reported a year earlier. Despite total expenses growing by 30.0%, Swissquote’s net profit surged by 38.2% to CHF 106.5 million.

This solid performance was primarily attributed to non-transaction-based revenues, such as net interest income and custody fees. Interestingly, this segment outpaced transaction-based revenues for the first time, the company noted.

The first half of 2023 saw the net interest income escalate by an impressive 587.6% to CHF 102.7 million. In contrast, trading activity remained subdued, with the number of transactions decreasing by 26.7%. Nevertheless, there was a slight improvement compared to the second half of 2022.

Swissquote blames clients’ cautious trading even in higher-risk asset classes such as crypto assets. Compared with the prior-year period, net crypto-assets income dipped by 62 percent in the last semester to CHF 7.5 million from CHF 19.5 million a year ago and CHF 63.2 million in 2021.

Other business highlights show that net trading income also dropped by 11 percent to CHF 26.7 million from CHF 30.7 million in H1 2022. Contrasting this decline, the net eForex income saw a modest increase by 1.1 percent to CHF 55 million from CHF 54.3 million a year ago.

As of 30 June 2023, client assets reached an all-time high of CHF 56.9 billion by the end of June 2023. The company’s client base expanded by 6.4% over the past year, with average assets per customer exceeding CHF 100,000. As a result, Swissquote’s balance sheet remained solid and liquid, with cash and balances held with central banks accounting for over 40% of total assets.

In light of its impressive performance, Swissquote has revised its full-year guidance upwards. Despite continued market challenges, the company now aims for net revenues of CHF 530 million and a pre-tax profit of around CHF 250 million for the FY 2023. Additionally, Swissquote celebrated its improved ESG Risk rating by Sustainalytics, which upgraded the company’s rating from “medium risk” to “low risk.”

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