Swissquote Group (SQN) H1 2024 earnings summary

Executive summary

• Net revenues reached CHF 316.9 million in H1-2024, up 19.3% year-over-year, with pre-tax profit at CHF 169.7 million, up 35.9% year-over-year, marking the best half-year in company history.

• Net profit for H1-2024 was CHF 144.6 million, up 36% year-over-year, with EPS rising to CHF 9.69 from CHF 7.15.

• Net new money inflows totaled CHF 3.8 billion (+26.5%), with over 36,000 new client accounts added, bringing total clients to over 610,000.

• Client assets hit a record CHF 68 billion at the end of June, a 17.3% increase from December 2023, with 86% in securities and 14% in cash.

• Acquisition of Optimatrade Investment Partners (now Swissquote South Africa) completed, adding CHF 1.3 billion in client assets.

Financial highlights

• Revenue grew 19.3% year-over-year to CHF 316.9 million; pre-tax profit rose 35.9% to CHF 169.7 million; net profit margin at 45.6%.

• Net crypto assets income surged 369% year-over-year to CHF 35.1 million, contributing 11% of net revenues.

• Net interest income was CHF 109.8 million, stable compared to H2-2023.

• eForex income declined 14.2% year-over-year due to low volatility.

• Total expenses for H1 were CHF 147.2 million, exactly 50% of the annual target, with cost/income ratio improved.

Outlook and guidance

• Full-year 2024 pre-tax profit guidance raised from CHF 300 million to CHF 320 million; revenue guidance increased from CHF 595 million to CHF 615 million.

• Pre-tax margin above 50% is expected to be sustainable into 2025.

• Forecasts anticipate CHF 71 billion in client money by year-end, with an additional CHF 3 billion net new money expected in H2.

• Cautious outlook for H2 due to expected lower interest rates and more moderate crypto and trading activity.

• Management expects continued growth, supported by expansion in international markets and digital banking initiatives.