Swissquote revenue surge to $623 million in 2023, profit up 36%

Swissquote Group, Switzerland’s provider of online trading services, reported its operating revenue for the 12-month period ending December 31, 2023 at CHF 530 million (roughly $623 million).

This figure is higher by 28 percent when weighed against the CHF 415 million it booked in 2022.  The bank, based in Gland, western Switzerland, said its pre-tax profit for the year came at CHF 255 million ($300 million), up 36 percent from CHF 186.4 million ($201 million) the previous year.

As of 31 December 2022, client assets reached CHF 55.2 billion, out of which CHF 5 billion in new money it attracted in 2023. With a capital ratio of 25.7 percent, Swissquote says it is well positioned to benefit from higher market interest rates.

Earlier in August, Swissquote said its H1 revenues rose by nearly a third from a year ago even as clients’ interest in trading stagnated. 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.

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, 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.

Additionally, Swissquote celebrated its improved ESG Risk rating by Sustainalytics, which upgraded the company’s rating from “medium risk” to “low risk.”