Swissquote Bank’ 2015 profit drops 91% due to EUR/CHF unpegging

Swissquote Bank’ 2015 profit drops 91% due to EUR/CHF unpegging

Swissquote Bank (SWX:SQN), a Switzerland online bank and investment service provider, said on Friday its profit fell 91% to nearly CHF 2.1 million in 2015 from CHF 23.5 million a year earlier. Although its revenue stayed relatively unchanged and customer accounts and deposits increased from a year earlier, the company’s financial performance the first half of last year was negatively affected by the Swiss National Bank’s decision in mid-January 2015 to unpeg the Swiss franc (CHF) from the Euro (EUR).  Swissquote had no choice but to provide CHF 25 million in order to cover the negative balances incurred by clients.The company expects to see a growth of 10% in 2016, since in preceding year it posted record-high metrics for net operating revenue, client growth, assets under custody, and net new money.

More highlights about Swissquote Bank’s 2015 financial metrics follow:

  • Net revenue went slightly up by 0.8% to more than CHF 146.6 million
  • Net operating revenue went up 4.2% to nearly CHF 151.7 million
  • Net fees and commission income increased 5.9% to CHF 66.6 million
  • Expenses went up 4.1% to CHF 122.1 million
  • Total number of accounts grew 4.2% to 231,327, of which 26,246 were online forex accounts, 171,170 were trading accounts, 32,542 were saving accounts, and 1,369 were online private banking accounts
  • Total assets under custody were 3.7% up to nearly CHF 12 billion, of which CHF 210.6 million were forex assets

Swissquote Bank is an online provider of financial trading, analysis and information services. The Swissquote Group is headquartered in Switzerland’s Gland and has offices in Zurich, Bern, Dubai, Malta, London and Hong Kong.

Swissquote Bank has 63 currency pairs in its product portfolio. For trading the bank offers mini, standard, and premium accounts and three trading platforms – the industry leader MetaTrader 4 (MT4), as well as FXBook and Advanced Trader.

Source: Swissquote Bank

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