Swissquote's Net Revenue and Client Assets Reach Record Heights in H1 2023

<p>Amidst a
challenging investment environment during the first half of 2023, Swissquote
has defied the odds, surpassing its initial expectations. It reported record net revenues
and a considerable increase in client assets. Total operating profit reached CHF 124.87
million, growing by more than CHF 34.2 million compared to the same period a
year earlier.</p><p>Swissquote Achieves Record
Figures amid Challenging Investment Landscape</p><p>Despite
decreased trading activity across the industry, Swissquote's net revenues soared to
CHF 265.6 million, which is a jump of 32.8% <a href="https://www.financemagnates.com/forex/brokers/swissquotes-operating-revenues-dip-231-yoy-in-h1-2022/" target="_blank" rel="follow">compared to the previous year</a>.
Interestingly, transaction-based revenues, such as brokerage income, did not
lead the growth.</p><p>Instead,
non-transaction-based revenues, including net interest income and custody fees,
took center stage. In fact, due to the prevailing low market <a href="https://www.financemagnates.com/terms/v/volatility/">volatility</a>, these particular revenues overtook transaction-based earnings for the first time. With a significant
rise of 587.6% in net interest income amounting to CHF 102.7 million, which is primarily
attributed to a higher interest rate setting.</p><p>This
trajectory led to the firm registering its second-highest pre-tax profit. As a
result, the net profit margin improved to 40.1%, reporting an increase in growth from 38.6% in the
prior year. Total expenses rose 30.0% to CHF 138.4 million, which was influenced
primarily by marketing and payroll costs. However, the company's profitability
metrics remained robust.</p><p>"Net
eForex income saw an increase of 1.1% to CHF 54.9 million despite a period of
low market volatility. Net trading income fell by 10.8% to CHF 26.7 million,
due again to lower trading volumes," the company commented in a press release.</p><p>Client Assets Hit a New
Peak</p><p>Over the
past year, Swissquote saw its client base grow 6.4%, raising the number of
client accounts to 555,266. These figures inflated further when solidified with client assets by 9.9%, marking a new record at CHF 56.9 billion. Even though net
new money dipped to CHF 3.0 billion, it remained organically generated, which is distinct from last year's acquisition-related inflow.</p><p>Swissquote's
balance sheet also demonstrated stability and liquidity. The total assets
ascended 3.5% to CHF 10.6 billion as of 30 June 2023. </p><p>"At
the same time, total equity increased by 6.8% to CHF 791.6 million. The capital
ratio remained stable at 25.5 % compared to 24.8% at the end of last year. The
balance sheet liquidity remained solid, with the <a href="https://www.financemagnates.com/terms/l/liquidity/">liquidity</a> coverage ratio
evolving on a monthly basis in the region of 400%, significantly above the 100%
minimum regulatory requirement," Swissquote added.</p><p>Swissquote Revises Full-Year
Guidance</p><p>Despite
potential market sentiment stagnation for the latter half of 2023, <a href="https://www.financemagnates.com/forex/brokers/swissquote-sees-19-net-profit-decline-in-2022-bullish-with-2023-outlook/" target="_blank" rel="follow">Swissquote
remains optimistic</a>. Given its strong first-half performance, the company has
updated its guidance for the full year. The revised projection is estimated at around CHF 530
million in net revenues and a pre-tax profit close to CHF 250 million.</p><p>Swissquote's
progress was not solely financial. The firm received acknowledgement from
Sustainalytics for its dedication to sustainability, enhancing its ESG Risk
rating from 'medium risk' to 'low risk'. </p><p>"This
change is a recognition of Swissquote's recent sustainability initiatives and
of the efforts made in recent months to improve its non-financial reporting,"
the company concluded.</p><p>The company
has recently launched <a href="https://www.financemagnates.com/institutional-forex/swissquote-launches-new-investment-and-saving-solution/" target="_blank" rel="follow">a new investment and savings solution</a>, offering customers
up to 2% interest on cash deposits. In addition, <a href="https://www.financemagnates.com/forex/swissquote-supports-launch-of-unicorn-focused-product-for-retail-investors/" target="_blank" rel="follow">it has partnered with
Stableton</a>, an investment firm specializing in private markets, to launch a
bank-active managed certificate (ACM) for retail investors in Switzerland.</p>

This article was written by Damian Chmiel at www.financemagnates.com.