On Thursday, Swissquote reported that their total revenue and pre-tax profit for 2022 were far above the projected minimums of CHF 400 million and CHF 185 million, respectively.
The online broker’s results are notably lower than their high watermark established in 2021. The annual net revenue was CHF 472 million, and pre-tax profit stood at CHF 223 million. The current results represent a decrease of more than 15% and 17% for revenue and pre-tax profit, respectively.
Swissquote has effectively sailed through a challenging market landscape thanks to its varied income streams and larger proportion of non-transaction dependent revenues, the firm highlighted.
Despite its similar net revenue figures for the first and second halves of the year, Swissquote reported a decline of
24.4% year-over-year at CHF 200 million. Additionally, its net trading income for the first six months of the year was CHF 30.7 million, a 28% decrease compared to last year’s comparable period.
By December 2022, Swissquote’s client assets had reached CHF 52.2 billion, a decrease from its 2021 figure of CHF 55 billion and higher than 2020’s CHF 39.8 billion. Inflows of new funds to the platform to the tune of CHF 7.7 billion in 2021 are anticipated to partially counteract any adverse market effects.
Many developments in Swissquote
Last year was a period of rapid expansion for Swissquote; in addition to attaining a Cyprus Investment Firm (CIF) license to increase its presence in the EEA, it gained access to the Dubai Financial Market (DFM) and launched its own cryptocurrency exchange. All these measures were taken to stay ahead of local competition and ensure that Swissquote remains at the forefront of financial innovation.
Despite a major DDoS attack on its platform in November, Swissquote managed to keep the website running with minimal disruption. Fortunately, no significant outages were reported despite the attack, proving the resilience of their security measures.