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.
This article was written by Tareq Sikder at www.financemagnates.com.
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