The online bank Swissquote has benefited in the first half of the year from the strong performance of the stock markets and the good mood among investors. According to the announcement published on Tuesday, net revenue reached 316,9 million francs (+19,3 percent compared to the first half of 2023), pre-tax profit amounted to 169,7 million (+35,9 percent), and net profit came in at 144,6 million francs (+36 percent).

The increase in client assets to a record value of 68 billion francs (+19,6 percent) can be largely attributed to the favorable market conditions. However, the net new money inflow of 3,8 billion francs is also impressive. The number of customer accounts has increased by over 36'000 in the first months of 2024, which is more than the total increase in the previous year, Swissquote notes, now managing over 610'000 accounts in total.

Crypto Assets Are Booming

One particularly striking aspect on the revenue side is the crypto assets. Net revenue in this segment increased (from a very modest level) by 369 percent to 35,1 million francs. This was driven by both rising cryptocurrency prices and higher trading volumes.

The online bank not only thrives on (stock market) trading but is also listed on the (Swiss) stock exchange itself (through its parent company). Swissquote shareholders will be pleased to hear that the outlook for the full year has been revised upwards.

Yuh Has Yet to Break Even

Swissquote now expects net revenue and pre-tax profit for the full year to reach 615 million and 320 million francs, respectively (previously 595 million and 300 million). However, the online bank advises a «certain caution when considering the second half of 2024, particularly in the crypto market,» adding a slightly cryptic note.

In contrast, the mobile financial app Yuh, which Swissquote operates together with PostFinance, is not yet reaching its full potential. While the number of users has significantly increased to over 235'000 (+58,9 percent), and customer assets have grown to 2 billion francs (+103,2 percent), Yuh's contribution to pre-tax profit in 2024 will still be negative, although less of a drag than in the previous year.

On the cost side, the increase in personnel expenses by 9,6 percent to 75 million francs is notable. This is attributed to the rise in headcount (1'156 compared to 1'083 full-time positions), as well as higher variable compensation. Clearly, the strong business performance has also paid off for the employees.