Swissquote Aims High With CHF 300 Million Profit Objective For 2024

Swissquote is planning to close this year with a pre-tax revenue of CHF 300 million and an annual income of CHF 595 million. The guidance arrived as the firm’s revenue for last year rose 30.2% to CHF 531.4 million. The pre-tax profit increased 26% to CHF 270.9 million. Previously, the company announced that it concluded 2023 with a series of record financial figures.

There Was A Surge In Trading Confidence Since The Final Quarter Of 2023

In 2023, Swissquote earned CHF 213.1 million from interest revenue. It further saw robust cash deposits, which made up 15% of the total customer assets. It emphasized that last year was the inaugural year when non-transactional income, with 58%, surpassed transactional income, with 42%.

Notwithstanding the solid guidance, the Swiss firm expects its interest revenue could be influenced by possible interest rate reductions. However, the firm witnessed a surge in trading confidence since the final quarter of 2023.

In addition, the Swiss company is extending its global footprint. It has ventured into the South African markets through the purchase of Optimatrade Investment Partners, a regionally sanctioned financial services provider. The two firms had a relationship of 10 years as Optimatrade was serving as an introducer for Swissquote.

The Swiss Company Plans To Expand Its Global Footprints

The Swiss broker disclosed that the commission charges incurred last year were around 0.4% of net profits.

Documenting the revenue streams of the previous year, Swissquote revealed that its new fee and income generated from revenue decreased by 4%. This is because of the reduced customer engagement.

Profits from the crypto assets dropped by 31.9% due to subdued volatility during the majority of the year. Furthermore, the net eForex profit reduced by 2.7%

The company announced that both eForex volumes and assets grew compared to last year. The subdued volatility, which impacted FX markets significantly, affected the financial performance of the eForex volumes. Moreover, Net trading income grew by 2.6%, assisted by the development of new services and products.

Meanwhile, the company saw other metrics improve. It opened an additional 35,328 accounts last year for customers, making it 574,274 total client accounts.

The total number of trading accounts increased by 7.2%. This also shows that the amount of Robo-advisory and savings accounts extended to 14.9%. The eForex assets increased by 7.2%, however, the amount of eForex accounts was reduced by 4.3%

According to the firm’s report, the internationally located customers accounted for a larger share of Swissquote’s revenue than the residents of Swiss. The ratio is currently 51% and 49% respectively.