Leading online Swiss bank Swissquote Group Holding SA (SWX:SQN) reported net revenues of CHF 112.2 million for the first half of 2019, equaling the high figure posted in the same period of the previous year.
Pre-tax profit of CHF 25.1 million was lower YoY. On the strength of a net new money inflow of CHF 3.4 billion and a solid market performance, client assets exceeded the CHF 30 billion mark for the first time.
For the year as a whole, Swissquote continues to project growth in net revenues of 5 to 10%. Both projects Internaxx and Singapore showed encouraging results. LeapRate reminds that the company completed the acquisition of Internaxx Bank in Luxembourg after receiving regulatory approval from the European Central Bank and the CSSF (Commission de Surveillance du Secteur Financier) back in March 2019.
The pre-tax profit forecast for 2019 of CHF 44 million made in March has been revised to CHF 48 million.
In the first half of 2019, Swissquote achieved two major milestones in terms of implementing its long-term growth strategy:
- Finalization of the acquisition of Internaxx Bank – over a period of just over three months, Internaxx contributed CHF 3.5 million to the result (CHF 1.3 million in net fee & commission income, CHF 1.8 million in net interest income and CHF 0.4 million in net trading income).
- On 30 July the Monetary Authority of Singapore (MAS) granted a Capital Market Service License (CMSL) to Swissquote Pte Ltd, which was founded in Singapore.
Revenues stable At CHF 117.2 million, operating revenues remained stable compared to the very strong first half of 2018 (CHF 118.0 million). However, they were up almost 10 percent against the second half of 2018. The impact of negative interest rates of -CHF 5.1 million (CHF -4.2 million) led to net revenues of CHF 112.2 million, likewise in line with the year-back level (CHF 112.8 million).
Owing to a significant YoY decline in cryptocurrency business (-CHF 4.8 million) as well as the previously communicated weak start to trading in the first few months of 2019, net fee & commission income was 17.9 percent lower at CHF 45.6 million (CHF 55.6 million).
Net eForex income was up 12.5% to CHF 39.5 million (CHF 35.1 million). This growth was due to a 33.8 percent increase in assets held in eForex accounts to CHF 439.8 million. In addition, margins were generally improved. Net interest income increased by a substantial 35.8 percent to CHF 21.2 million (CHF 15.6 million).
Net trading income (currency trading excluding eForex) was down slightly by 6.8% to CHF 10.9million (CHF 11.7 million).
The complete financial report for the 1st half of 2019 is available here.
