Swissquote (SWX: SQN) aims to achieve annual revenue of 5% by 2024.9.5 billion francs, pre-tax profit 300 million francs。The company's 2023 revenue growth of 30.2% to 5.31.4 billion francs, pre-tax profit up 26% to 2.CHF 70.9 billion, a series of new records。

Interest income windfall is disappearing

Last year, Swissquote's interest income was 2.13.1 billion Swiss francs, with cash deposits accounting for 15 per cent of total customer assets, resulting in restorative growth.。The company highlighted that non-trading revenue (58%) exceeded trading revenue (42%) for the first time in 2023.。

However, Swissquote expects that its interest income may be affected by a potential policy rate cut, but since the fourth quarter of 2023, the company has observed "an increase in trading optimism."。The company said: "In the process of approaching the 2025 medium-term target, Swissquote confirmed that the pre-tax profit reached 3.CHF 500 million remains the primary target and pre-tax margins should exceed 50%。"

Enter the South African market

In addition, Swissquote is expanding its global presence with the acquisition of Optimatrade Investment Partners, a local regulated financial services provider, to enter the South African market.。Optimatrade is the introducer of Swissquote, and the two companies have a decade-long relationship.。

Swissquote revealed that commission expenses accounted for about 0% of net income last year.4%, although it revealed that the CEO of Optimatrade will remain in office, it did not disclose the purchase price.。The acquisition is expected to close on March 1, 2024.。

Trading demand shrinks

Swissquote's new fee and commission income fell 4% due to lower levels of customer activity。Revenue from crypto assets decreased by 31 due to low volatility for most of the year.9%; net electronic foreign exchange income decreased by 2.7%。

"Although both electronic foreign exchange assets and trading volumes have increased from the previous year, the low volatility of the foreign exchange market has affected the profitability of electronic foreign exchange trading volumes.。Net transaction revenue increased by 2%, supported by the development of new products and services such as debit cards and payments..6%。"

At the same time, other indicators of the company have improved。Last year, Swissquote added 35,328 new accounts; the total number of client accounts reached 574,274; the number of trading accounts on the platform grew by 7.2%; number of robo-advisory and savings accounts up 14.9%。

However, the number of electronic foreign exchange accounts fell by 4.3%, while electronic foreign exchange assets increased by 7.2%。In addition, international customers account for a larger share of Swissquote's net income than Swiss residents, which is currently 51% and 49%, respectively.。

Total client assets on brokerage platform up 11.1%, to 58 billion Swiss francs, a record high。Last year's inflow of new funds amounted to 5 billion francs.。Swissquote noted: "The strength of the Swiss franc has affected client assets and net new capital.。"

Yuh App is still losing money

In addition, the number of accounts on Yuh, Swissquote's 50% joint venture, surged 80% last year..8% to 193,175。Client assets on the app also increased from CHF 600 million at the beginning of 2023 to CHF 1.4 billion at the end of the year.。However, the app caused a pre-tax loss of CHF 5 million, down from CHF 6.7 million the year before.。

Swissquote's business is still expected to lose money in 2024, but to a lesser extent.。In early 2024, the number of Yuh accounts exceeded 200,000.。