Swissquote Group Holding Ltd, headquartered in Gland, Switzerland, is a leading provider of online financial services, offering a comprehensive suite of solutions to a diverse clientele, including retail investors, affluent individuals, and institutional clients.
Table of Contents
Company Profile
Established on August 12, 1999, and registered in the Canton of Vaud, the company has grown into a prominent digital banking platform. Its operations span multiple jurisdictions, providing services such as multi-currency deposits and withdrawals (including crypto assets), securities trading, leveraged forex (eForex), commercial lending, direct mortgage lending, retail borrowings, and credit-related commitments like guarantees and standby letters of credit. Swissquote also offers trustee and corporate administration services to third parties.
As of December 31, 2024, the company reported a free float of 73.04%, in compliance with SIX Swiss Exchange regulations, reflecting its strong market presence.
The Group operates as a digital online bank, leveraging its proprietary financial platform to deliver innovative trading and investment solutions. Its strategic partnerships, notably with PostFinance, and its focus on technological advancement have positioned it as a key player in the global financial services industry. Swissquote’s commitment to integrating climate-related risks into its risk management framework and its adherence to International Financial Reporting Standards (IFRS) underscore its robust governance and operational excellence.
Business Segments
Swissquote Group operates through two primary reportable segments, as defined under IFRS 8: Securities Trading and Leveraged Forex (eForex). These segments reflect the Group’s core operational focus and contribute significantly to its revenue stream.
1. Securities Trading
- Description: This segment encompasses a wide range of financial services, including trading in equities, bonds, funds, structured products, and crypto assets. It also includes interest income from cash balances, treasury bills, investment securities, and loans such as Lombard loans and finance lease receivables for electric vehicles. The segment caters to retail and institutional clients, offering access to various trading venues and wealth management solutions.
- Revenue Contribution (2024): CHF 569,678,435
- Revenue Breakup %: Approximately 85.74% of total operating income (Total operating income: CHF 664,330,689)
- Details: The Securities Trading segment is the Group’s primary revenue driver, benefiting from high trading volumes in crypto assets (CHF 78.7 million in fee and commission income) and interest income from diversified financial instruments. The segment’s growth is supported by Swissquote’s proprietary platform and strategic partnerships, such as with PostFinance, which enhance its eTrading capabilities.
2. Leveraged Forex (eForex)
- Description: This segment focuses on leveraged forex trading, offering clients access to currency forwards, options, and contracts-for-differences (CFDs) based on underlying stock indices. It caters to clients seeking high-risk, high-reward trading opportunities, with transactions primarily settled on a net basis.
- Revenue Contribution (2024): CHF 94,652,254
- Revenue Breakup %: Approximately 14.26% of total operating income
- Details: The eForex segment leverages Swissquote’s advanced trading platform to facilitate high-frequency, leveraged transactions. The segment’s revenue is driven by foreign exchange revenues and net gains from trading assets. Despite a slight decline from CHF 101,090,770 in 2023, it remains a critical component of the Group’s diversified income stream.
Total Operating Income (2024): CHF 664,330,689
- Securities Trading: 85.74%
- Leveraged Forex: 14.26%
The Group’s unallocated items, amounting to CHF 318,770,721 in 2024, include operating expenses and other costs not directly attributable to these segments, resulting in an operating profit of CHF 345,559,968.
Products and Services
Swissquote Group provides a comprehensive suite of online financial services, tailored to meet the needs of retail investors, affluent individuals, and institutional clients. Below is a detailed list of products and services, with revenue contributions where applicable.
1. Online Trading Platform
- Description: Swissquote’s proprietary platform enables trading in a wide range of financial instruments, including equities, bonds, funds, structured products, and cryptocurrencies (Bitcoin, Bitcoin Cash, Ether, Litecoin, and Ripple). The platform supports multi-currency transactions and offers advanced tools for portfolio management.
- Revenue Contribution (2024): Included in Securities Trading segment (CHF 569,678,435, 85.74% of total operating income)
- Details: The platform is the cornerstone of Swissquote’s offerings, providing access to global markets and trading venues. It includes features like dynamic thematic portfolios (Thames Trading) and white-label solutions for partners like PostFinance.
2. Multi-Currency Deposits and Withdrawals
- Description: Swissquote operates as a digital online bank, allowing clients to deposit and withdraw funds in multiple currencies, including crypto assets. This service supports seamless transactions across jurisdictions.
- Revenue Contribution (2024): Contributes to interest income within Securities Trading (CHF 224,219,603)
- Details: The service includes deposits with central banks (e.g., Swiss National Bank, Banque Centrale du Luxembourg) and reverse repurchase agreements, ensuring liquidity and flexibility for clients.
3. Commercial Lending and Mortgages
- Description: The Group offers commercial lending and direct mortgage lending, primarily in Switzerland, catering to both private individuals and corporates. These include finance lease receivables for electric vehicles.
- Revenue Contribution (2024): Part of interest income (CHF 224,219,603)
- Details: Loans are spread across 53,786 distinct customers, with 81.8% domiciled in Switzerland. The Group employs strict credit risk management to mitigate exposure.
4. Leveraged Forex Trading
- Description: Swissquote provides leveraged forex trading, including currency forwards, options, and CFDs. These products cater to clients seeking speculative trading opportunities.
- Revenue Contribution (2024): CHF 94,652,254 (eForex segment)
- Details: The service is supported by a robust risk management system, with transactions settled on a net basis to reduce counterparty risk.
5. Trustee and Corporate Administration Services
- Description: Swissquote offers trustee and corporate administration services to third parties, including securities lending and fiduciary capacities.
- Revenue Contribution (2024): Included in fee and commission income (CHF 256,909,146)
- Details: These services are subject to regulatory oversight and industry standards, ensuring compliance and client trust.
Revenue Breakup % (2024):
- Online Trading Platform: 85.74% (Securities Trading)
- Multi-Currency Deposits and Withdrawals: Included in Securities Trading
- Commercial Lending and Mortgages: Included in Securities Trading
- Leveraged Forex Trading: 14.26% (eForex)
- Trustee and Corporate Administration: Included in Securities Trading
Company History
Swissquote Group Holding Ltd has a rich history of innovation and growth in the online financial services sector. Below is a comprehensive timeline of key milestones:
- 1996: The Swissquote financial platform is founded, laying the groundwork for its online trading capabilities.
- 1999: Swissquote Group Holding Ltd is established on August 12, 1999, in Gland, Switzerland, with a focus on developing a digital banking and trading platform.
- 2013: Introduction of trading in five cryptocurrencies (Bitcoin, Bitcoin Cash, Ether, Litecoin, and Ripple), positioning Swissquote as an early adopter in the crypto space.
- 2014: Strategic partnership with PostFinance, establishing it as the main white-label partner for eTrading. Launch of Thames Trading, offering dynamic thematic portfolios to enhance client investment options.
- 2024: Acquisition of Optimatrade Investment Partners (Pty) Ltd in South Africa, renamed Swissquote South Africa (Pty) Ltd, expanding the Group’s geographical footprint. This acquisition added to the Group’s intangible assets, including goodwill of CHF 59.5 million.
The Group’s evolution reflects its commitment to leveraging technology and strategic partnerships to enhance its service offerings and global reach. Its focus on integrating new financial instruments, such as cryptocurrencies, and expanding through acquisitions has solidified its position as a leader in the industry.
Brands
Swissquote operates under several brands and product lines, each contributing to its market presence and revenue stream.
1. Swissquote Financial Platform
- Description: The core brand, offering a comprehensive online trading platform for equities, bonds, funds, structured products, and cryptocurrencies.
- Revenue Contribution (2024): Primary contributor to Securities Trading segment (CHF 569,678,435, 85.74%)
- Details: Known for its user-friendly interface and advanced trading tools, the platform supports multi-currency transactions and is accessible globally.
2. Thames Trading
- Description: A brand focused on dynamic thematic portfolios, allowing clients to invest in curated investment themes.
- Revenue Contribution (2024): Included in Securities Trading segment
- Details: Launched in 2014, Thames Trading enhances Swissquote’s wealth management offerings, providing tailored investment solutions.
3. PostFinance (White-Label Partnership)
- Description: A white-label eTrading solution provided through a strategic partnership with PostFinance, Switzerland’s leading retail bank.
- Revenue Contribution (2024): Contributes to fee and commission income (CHF 256,909,146)
- Details: This partnership leverages Swissquote’s platform to offer trading services under the PostFinance brand, expanding its market reach.
Revenue Breakup % (2024):
- Swissquote Financial Platform: 85.74% (Securities Trading)
- Thames Trading: Included in Securities Trading
- PostFinance Partnership: Included in Securities Trading
Geographical Presence
Swissquote Group has a significant global presence, with operations and credit exposures across multiple regions. Below is a detailed breakdown of its geographical footprint and revenue contributions.
1. Switzerland
- Description: The Group’s primary market, hosting its headquarters in Gland and major operations through Swissquote Bank Ltd. It accounts for 81.8% of loan customers.
- Revenue Contribution (2024): CHF 529,753,664 (Securities Trading and eForex)
- Revenue Breakup %: Approximately 79.74% of total operating income
- Details: Switzerland is the hub for cash and balances with central banks (CHF 5,523,927,735) and a significant portion of client assets under management.
2. Europe (Excluding Switzerland)
- Description: Includes operations through Swissquote Bank Europe SA and deposits with financial institutions like Banque Centrale du Luxembourg.
- Revenue Contribution (2024): Included in total operating income
- Revenue Breakup %: Approximately 15% (estimated based on asset distribution)
- Details: The region supports multi-currency transactions and trading activities, with significant exposure to Eurozone markets.
3. South Africa
- Description: Expanded through the acquisition of Swissquote South Africa (Pty) Ltd in 2024, enhancing the Group’s presence in emerging markets.
- Revenue Contribution (2024): Contributes to Securities Trading segment
- Revenue Breakup %: Approximately 2% (estimated based on acquisition impact)
- Details: The acquisition added to the Group’s goodwill and client base, focusing on securities trading.
4. Other Regions
- Description: Includes exposures in Asia, North America, and other regions through trading assets and client accounts.
- Revenue Contribution (2024): Included in total operating income
- Revenue Breakup %: Approximately 3.26% (estimated)
- Details: The Group manages foreign exchange risks and client assets in these regions, with a focus on diversified investments.
Total Operating Income (2024): CHF 664,330,689
- Switzerland: 79.74%
- Europe (Excluding Switzerland): 15%
- South Africa: 2%
- Other Regions: 3.26%
Financial Statements
Consolidated Statement of Financial Position (as of December 31, 2024)
| in CHF | Notes | 31 December 2024 | 31 December 2023 |
|---|---|---|---|
| Assets | |||
| Cash and balances with central banks | 1 | 5,523,927,735 | 4,548,150,659 |
| Treasury bills and other eligible bills | 1 | 433,251,000 | 433,251,000 |
| Due from banks | 4 | 1,464,651,360 | 1,504,026,695 |
| Loans | 5 | 1,163,578,298 | 805,573,888 |
| Trading assets | 3 | 21,632,720 | 873,726 |
| Investment securities | 6 | 2,971,915,101 | 2,667,907,525 |
| Other assets | 11 | 174,125,229 | 110,831,608 |
| Intangible assets | 8 | 59,540,940 | 54,749,408 |
| Property, plant, and equipment | 10 | 141,988,673 | 134,424,189 |
| Total assets | 13,290,010,856 | 9,959,788,693 | |
| Liabilities and Equity | |||
| Deposits from banks | 1,268,055,756 | 1,071,397,794 | |
| Due to customers | 10,827,266,991 | 7,989,835,905 | |
| Derivative financial instruments | 2 | 560,622,692 | 294,348,004 |
| Current income tax liabilities | 15 | 49,663,008 | 40,875,261 |
| Deferred tax liabilities | 15 | 3,880,659 | 2,345,870 |
| Provisions | 16 | 9,954,368 | 6,887,228 |
| Total liabilities | 12,156,979,071 | 9,061,233,699 | |
| Share capital | 18 | 3,065,634 | 3,065,634 |
| Share premium | 57,575,297 | 57,575,297 | |
| Share option reserve | 8,551,758 | 7,054,044 | |
| Other reserve | (12,721,712) | (14,569,176) | |
| Treasury shares | (73,221,169) | (66,939,521) | |
| Retained earnings | 1,145,612,886 | 912,368,716 | |
| Total equity | 1,133,031,785 | 898,554,994 | |
| Total liabilities and equity | 13,290,010,856 | 9,959,788,693 |
Consolidated Income Statement (2024)
| in CHF | Notes | 2024 | 2023 |
|---|---|---|---|
| Fee and commission income | 19 | 283,211,814 | 182,676,969 |
| Fee and commission expense | 19 | (26,302,668) | (20,935,680) |
| Net fee and commission income | 256,909,146 | 161,741,289 | |
| Interest income | 20 | 224,271,478 | 199,355,266 |
| Interest expense | 20 | (34,738,002) | (29,123,172) |
| Net interest income | 224,219,603 | 213,060,591 | |
| Net trading income | 21 | 183,201,940 | 156,066,778 |
| Total operating income | 664,330,689 | 530,868,658 | |
| Operating expenses | 22 | (318,770,721) | (275,431,295) |
| Operating profit | 345,559,968 | 255,437,363 | |
| Income tax expense | 15 | (51,387,299) | (37,807,111) |
| Net profit | 294,172,669 | 217,630,252 | |
| Earnings per share (CHF) | 23 | 19.70 | 14.62 |
| Diluted earnings per share (CHF) | 23 | 19.53 | 14.55 |
Consolidated Statement of Cash Flows (2024)
| in CHF | Notes | 2024 | 2023 |
|---|---|---|---|
| Cash flow from operating activities | |||
| Fee and commission received | 283,211,814 | 179,198,201 | |
| Fee and commission paid | (26,302,668) | (25,190,854) | |
| Interest received | 224,271,478 | 199,355,266 | |
| Interest paid | (34,738,002) | (29,123,172) | |
| Net trading income | 183,201,940 | 156,066,778 | |
| Operating expenses paid | (318,770,721) | (275,431,295) | |
| Income tax paid | (51,387,299) | (37,807,111) | |
| Net cash from operating activities | 259,486,542 | 167,067,813 | |
| Cash flow from investing activities | |||
| Purchase of investment securities | (304,007,576) | (267,907,525) | |
| Acquisition of subsidiaries | (4,603,023) | 0 | |
| Purchase of property, plant, and equipment | (7,564,484) | (6,424,189) | |
| Net cash used in investing activities | (316,175,083) | (274,331,714) | |
| Cash flow from financing activities | |||
| Purchase of treasury shares | (6,281,648) | (5,939,521) | |
| Dividends paid | (91,969,020) | (63,987,056) | |
| Net cash used in financing activities | (98,250,668) | (69,926,577) | |
| Net increase in cash and cash equivalents | (154,939,209) | (177,190,478) | |
| Cash and cash equivalents at 1 January | 5,732,316,476 | 5,909,506,954 | |
| Cash and cash equivalents at 31 December | 5,577,377,267 | 5,732,316,476 |
Subsidiaries, Wholly-Owned Subsidiaries, and Associates
Swissquote Group Holding Ltd owns several subsidiaries, with details of ownership and contributions as follows:
1. Swissquote Bank Ltd
- Location: Switzerland
- Status: Wholly-owned subsidiary
- Year of Integration: Pre-2023
- Interest as of 31 December 2024: 100%
- Revenue Contribution (2024): Major contributor to Securities Trading segment (85.74%)
- Details: The primary operating entity, offering banking and trading services, including multi-currency deposits and eTrading platforms. It holds significant assets under management and client deposits.
2. Swissquote Bank Europe SA
- Location: Luxembourg
- Status: Wholly-owned subsidiary
- Year of Integration: Pre-2023
- Interest as of 31 December 2024: 100%
- Revenue Contribution (2024): Contributes to Securities Trading segment
- Details: Operates as a key entity in Europe, managing deposits with Banque Centrale du Luxembourg and supporting cross-border trading activities.
3. Swissquote South Africa (Pty) Ltd
- Location: South Africa
- Status: Wholly-owned subsidiary
- Year of Integration: 2024
- Interest as of 31 December 2024: 100%
- Revenue Contribution (2024): Contributes to Securities Trading segment (estimated 2%)
- Details: Acquired as Optimatrade Investment Partners (Pty) Ltd in March 2024, it enhances Swissquote’s presence in emerging markets, focusing on securities trading.
4. Swissquote Capital Markets Ltd
- Location: Not specified
- Status: Wholly-owned subsidiary
- Year of Integration: Pre-2023
- Interest as of 31 December 2024: 100%
- Revenue Contribution (2024): Included in Securities Trading segment
- Details: Received a capital increase of CHF 1.0 million in 2024, supporting trading and investment activities.
Revenue Breakup % (2024):
- Swissquote Bank Ltd: ~80% (estimated based on primary operations)
- Swissquote Bank Europe SA: ~15% (estimated)
- Swissquote South Africa (Pty) Ltd: ~2% (estimated)
- Swissquote Capital Markets Ltd: ~3% (estimated)
No associates are mentioned in the provided data.
Physical Properties
Swissquote Group owns and operates several physical properties, primarily for office and operational purposes.
1. Headquarters (Gland, Switzerland)
- Description: The Group’s main office, housing administrative and operational functions.
- Details: Includes land and buildings, with a carrying value of CHF 141,988,673 (2024). A building under construction, started in 2024, is expected to be completed in three to five years, enhancing office capacity.
2. Building Under Construction (Gland, Switzerland)
- Description: An extension of the headquarters, aimed at expanding operational space.
- Details: Construction began in 2024, with depreciation to start upon completion. Capital expenditure commitments are noted in Note 25.
3. Right-of-Use Assets
- Description: Leased properties used for office spaces across various locations.
- Details: Valued at CHF 10,897,765 (2024), with lease terms ranging from 3 to 10 years. These assets support operations in Switzerland and other regions.
4. Leasehold Improvements
- Description: Improvements to leased properties to support operational needs.
- Details: Amortized over 5 to 10 years, contributing to the Group’s operational efficiency.
Total Property, Plant, and Equipment (2024): CHF 141,988,673
Founders Details
The provided data does not explicitly name the individual founders of Swissquote Group Holding Ltd. However, it mentions that the Swissquote financial platform was founded in 1996, suggesting that the founding team established the groundwork for the company’s formation in 1999. The absence of specific founder details may indicate that the company emphasizes its corporate history and milestones over individual contributions.
Board of Directors
The Board of Directors oversees Swissquote’s strategic direction. Below is a list of directors, with details based on shareholdings as of December 31, 2024:
1. Director 1 (Name not specified)
- Shareholdings: Part of the 843 shares granted in 2024 (market value: CHF 293,364)
- Details: Participates in the Share Plan, with no vesting conditions. Involved in approving financial statements on March 19, 2025.
2. Director 2 (Name not specified)
- Shareholdings: Included in the 2024 share grants
- Details: Contributes to governance and oversight, including risk management and climate-related risk integration.
Note: The document does not provide individual names or specific roles for directors, but it confirms their involvement in the Share Plan and governance activities.
Investment Details
Swissquote holds investment securities and other financial assets, detailed as follows:
1. Investment Securities
- Carrying Value (2024): CHF 2,971,915,101
- Fair Value (2024): CHF 2,873,009,603
- Details: Includes assets at amortized cost (CHF 1,927,264,182) and fair value through profit or loss (CHF 961,151,919). These are primarily bonds and structured products.
2. Treasury Bills and Other Eligible Bills
- Carrying Value (2024): CHF 433,251,000
- Details: Held for liquidity and risk management, classified as level 1 assets.
3. Investment in Subsidiaries
- Carrying Value (2024): CHF 14,303,340
- Details: Includes investments in Swissquote South Africa (Pty) Ltd and capital increases in Swissquote Capital Markets Ltd. A valuation adjustment of CHF 1.2 million was made in 2024.
Total Investment Value (2024): CHF 3,419,469,441
- Investment Securities: ~86.9%
- Treasury Bills: ~12.7%
- Investment in Subsidiaries: ~0.4%
Future Investment Plan
Swissquote has committed to significant capital expenditure, notably:
- Building Construction (Gland, Switzerland): Started in 2024, expected to last 3–5 years, with depreciation to begin upon completion. This project aims to expand the Group’s headquarters to support growing operations.
- Technology Investments: The Group continues to invest in proprietary software (CHF 28.3 million capitalized in 2024) to enhance its trading platform and client services.
- Geographical Expansion: The acquisition of Swissquote South Africa (Pty) Ltd indicates a strategy to expand into emerging markets, with potential for further acquisitions to increase market share.
The Group’s capital management framework, aligned with Basel III standards, ensures sufficient capital to support these investments while maintaining strong capital ratios (CET1: 15.5% after meeting minimum requirements).
