Swissquote builds provisions following the decision of the SNB 

swissquote

The surprising decision from the Swiss National Bank (SNB) to remove the 1.20 floor on the EUR/CHF has consequences on Swissquote Bank. Many clients were following the confirmed longstanding strategy from the SNB and were anticipating a weakening of the Swiss Franc against the Euro.

Today’s drop of up to 15 percent has left the clients with a negative balance and has prompted the bank to activate a provision of 25 million CHF. This provision will influence the results in the first half of 2015, without affecting the profitability and solidity of the bank. Even with this provision, the bank will have a core capital ratio (Tier 1) of around17 percent.

On 3rd March 2015 Swissquote will publish its results for the financial year 2014. The year 2014 was marked by the full integration of MIG Bank, which had been acquired in September 2013. The strong growth in all business segmentswill generate record revenuesof about 145 million CHF (preliminary, unaudited), with a pre-tax profit of about 28 million CHF. More detailed information about the financial year 2014 will be made public at the presentation of results on the 3rd March 2015.

Source: Swissquote – Swissquote builds provisions following the decision of the SNB

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