Swissquote Group (SQN) H2 2023 earnings summary

Executive summary

• FY2023 net revenues reached CHF 531.4m, up 30.2% YoY; pre-tax profit was CHF 255.4m, up 37.0%.

• Client assets rose 11.1% to CHF 58.0bn and accounts increased 6.6% to 574,274; 2024 began with positive momentum.

Financial highlights

• Net profit was CHF 217.6m, up 38.3% YoY; pre-tax and net profit margins were 48.1% and 41.0%, respectively.

• Expenses totaled CHF 270.9m, up 26.0% YoY; payroll and related expenses increased 32.5% to CHF 136.7m.

• H2 net revenues were CHF 265.8m versus CHF 265.6m in H1; H2 net profit was CHF 111.1m, up 4.3% half-on-half.

Outlook and guidance

• 2024 guidance: net revenues of ~CHF 595m, up 12%; pre-tax profit of ~CHF 300m; expenses of CHF 295m.

• Revenue growth drivers include higher average assets, increased activity and higher interest income; 60% of expense increase is discretionary and adjustable, with headcount expected to remain stable.

• 2025 mid-term outlook: pre-tax profit ~CHF 350m, net revenues below CHF 700m, and net new money of ~CHF 7bn per year; assumed pre-tax margin >50%.