Swissquote Group has reported record financial results for the 6-month period ending June 30, 2024, citing improved investor sentiment and increased trading activity.
The Swiss online bank reported net revenues of CHF 316.9 million, up 19.3% from the same period last year. As of June 30, client assets reached a record high of CHF 68.0 billion, out of which CHF 3.8 billion in new money it attracted in 2024.
Diversification played a key role in Swissquote’s strong performance. Net interest income rose by 6.9%, driven by higher interest rates and cash deposits. Trading activity improved, with the number of transactions up 21.9%. Net fee and commission income grew 17.9% to CHF 86.9 million.
The bank, based in Gland, western Switzerland, said its pre-tax profit for the year surged 35.9% to CHF 169.7 million.
Meanwhile, net income from crypto assets soared by 369.0% to CHF 35.1 million, driven by a rise in crypto market capitalization and increased trading volumes.
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However, net eForex income fell by 14.2% to CHF 47.1 million, impacted by lower trading volatility, though it remained stable compared to the previous half-year.
Total expenses increased by 6.3% to CHF 147.1 million, largely due to a higher headcount and variable remuneration expenses. Despite this, the pre-tax profit margin improved to 53.5% from 47.0%, with net profit rising to CHF 144.6 million and a net profit margin of 45.6%.
The number of client accounts grew by over 36,000 in six months, surpassing the total growth for 2023, while the average assets per customer remained above CHF 100,000.
The mobile finance app Yuh also showed strong growth, with accounts up 58.9% to more than 235,000 and client assets doubling to CHF 2.0 billion. Although Yuh’s pre-tax profit contribution remains negative, Swissquote expects to improve compared to 2023.
Looking ahead, Swissquote has increased its full-year guidance, now targeting net revenues of CHF 615 million and a pre-tax profit of around CHF 320 million, up from its initial forecast of CHF 595 million and CHF 300 million, respectively. However, the company remains cautious about the second half of 2024, particularly with respect to the volatile crypto market.
