Swissquote expecting earnings of CHF 150 million for 2016 

• Swissquote will not be able to meet its 2016 growth target of 10%

In spite of solid growth in its client base (+2.33) and assets under custody (+CHF 1 billion) over the first four months of H2 2016 (July until October), Swissquote 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.
The situation was compounded by a similarly low level of trading in the eForex segment.

Stong growth potential

Swissquote remains focused on its strong growth potential. As a provided of white label solutions, Swissquote aims to provide to various partners bespoke solutions for trading securities and investment products. According to Swissquote Bank CEO Marc Burki, “The demand for innovative digital banking solutions is very strong and Swissquote is very well-placed in this area with ts 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 for 2016 on 3 March 2017.

 

Source: Swissquote

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