Swissquote's 2024 Financial Expectations: Targeting CHF 595m Revenue and CHF 300m Profit

Swissquote, a Switzerland-based leading forex broker, aims to achieve annual revenues of CHF 595 million by 2024 and pre-tax profits of CHF 300 million. The company's 2023 revenues grew 30.2% to CHF 531.4 million and pre-tax profit increased 26% to CHF 270.9 million. Previously, the company said it ended 2023 with a set of record financial numbers.

Last year, Swissquote generated interest income of CHF 213.1 million. In addition, cash deposits showed resilient growth and accounted for 15% of total client assets.

Despite the strong guidance, the Swiss firm expects its interest income could be impacted by potential policy rate cuts. However, since the fourth quarter of 2023, the firm has observed "an upswing in trading optimism".

“Getting closer to its medium-term targets set for 2025, Swissquote confirms that the pre-tax profit of CHF 350 million remains the primary objective, which should be achieved with a pre-tax profit margin above 50 percent,” the company noted.

Detailing last year's revenue streams, Swissquote highlighted that its new fee and commission revenue was down 4% due to lower client activity. Revenue from crypto-assets was down 31.9% due to lower volatility for most of the year. In addition, net eForex revenue was down 2.7%.

“Even though both eForex assets and volumes grew in comparison to the previous year, the low volatility, which dominated FX markets, affected the profitability of the eForex volumes. Net trading income increased by 2.6%, supported by the development of new products and services (e.g. debit cards and payments),” the company added.

In terms of other metrics, Swissquote added 35,328 accounts last year, bringing the total number of client accounts to 574,274. The number of trading accounts on the platform witnessed a growth of 7.2%. Total client assets on the brokerage platform rose by 11.1% to a record CHF 58 billion. New inflows amounted to CHF 5 billion last year.

“The strength of the Swiss franc affected both client assets and net new monies,” Swissquote pointed out.

(Source: Finance Magnates)