Swissquote reports record financial results for the first half of 2024
Swissquote reports record financial results for the first half of 2024
Swissquote, Switzerland's leading provider of online banking and trading services, reported its financial results for the first half of 2024, posting record revenue and earnings. The company's results were underpinned by strong growth in cryptocurrency trading, reflecting the growing importance of this asset class in Swissquote's overall business.
Swissquote's report showed that the company experienced a marked improvement in investor sentiment in the first half of 2024, which had a positive impact on trading activity and customer acquisition. The company's net revenue soared to CHF 316.9 million (approximately $365 million), up 19.3% year-on-year. Profit before tax rose even further to CHF 169.7 million - up 35.9% year-on-year. Net income also reached a record high of CHF 144.6 million, up 30% from the previous best result in the second half of 2023.
Swissquote's diversified revenue sources contributed to its strong performance. The company reported that net interest income rose 6.9%, helped by high interest rates and an increase in cash deposits. Despite low market volatility, trading activity improved, with transactions up 21.9%. Net fee and commission income increased by 17.9% to CHF 86.9 million.
The company's cryptocurrency trading division demonstrated outstanding performance, with net revenue from crypto assets jumping 369% to CHF 35.1 million. Thanks to this jump, cryptocurrency trading accounted for more than 11% of Swissquote's total revenue in the first half of 2024. A key driver of this growth was the dramatic increase in cryptocurrency market capitalization, including a more than 50% increase in the bitcoin price.
As of June 30, 2024, Swissquote's client assets reached a record high of CHF 68.0 billion, an increase of 19.6% year-on-year. The company also recorded an inflow of net funds of CHF 3.8 billion. The number of client accounts grew by more than 36,000 in just six months, raising the total to more than 610,000, with the average asset per client exceeding CHF 100,000.
At the same time, Swissquote raised its full-year forecast, now targeting a pre-tax profit of around CHF 320 million, up from an initial estimate of CHF 300 million. The company expects net revenue for the full year to be around CHF 615 million, up from the previously forecast CHF 595 million.
Despite these positive results, Swissquote intends to be cautious in the second half of 2024, especially with respect to the volatile cryptocurrency market. Nevertheless, the company remains confident in its diversified business model and strong capital position, which includes equity of CHF 1.0 billion and a capital ratio of 25.9%, well above regulatory requirements.
In conclusion, with strong results in the first half of the year and strategic initiatives, Swissquote is well positioned for continued growth in the rapidly evolving financial markets.
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