In spite of solid growth in its client base (+2,300) and assets under custody (+ CHF 1 billion) over the first four months of H2 2016 (July until October), Swiss online trading and banking services provider Swissquote Group Holding SA (SWX:SQN) has announced that it will not be able to meet its 2016 growth target of 10%. Total earnings are expected to increase 2.5% to around CHF 150 million, with a pre-tax profit margin of around 15%.
In the H1 2016 report, Swissquote expected total earnings to be around CHF 160 million. Although the markets have been relatively stable since June, a period of general uncertainty following the summer break (Brexit, US elections, the political situation in Turkey) led to a distinct fall in trading activity among clients. This situation was ompounded by a similarly low level of trading in the eForex segment.
Strong growth potential
Swissquote remains focused on its strong growth potential. As a provider of white label solutions, Swissquote aims to provide to various partners bespoke solutions for trading securities and investment products.
Swissquote CEO Marc Bürki
According to Swissquote Bank CEO Marc Bürki:
The demand for innovative digital banking solutions is very strong and Swissquote is very well-placed in this area with its advanced technology.
ePrivate Banking is another driver for growth with considerable potential. The significant growth in H1 and H2 confirmed the strong demand for digital solutions in asset management.
Swissquote will present its complete figures on March 3, 2017.