SwissQuote lags Plus500 and IG Group as Crypto Volume Slip

SwissQuote, the publicly-listed Swiss financial services company, has seen its business deteriorate this year. As a result, the SwissQuote share price has tumbled by over 47% from its highest point in 2021. As a result, its stock has diverged from other companies like IG Group and Plus500.

SwissQuote business under pressure

SwissQuote is a leading Swiss company that provides banking and online trading services face key headwinds. The company’s total number of new accounts dropped from 49,552 in the first half of 2021 to 34,229 in the first half of this year. It was slightly higher than the second half of 2021 to 29,000.

Further, the company’s client assets dropped to 51.8 billion Swiss francs from almost 56 billion francs in the second half of 2021. Still, the amount is substantially higher than where it was before the pandemic started. Its net profit dropped to about CHF 77.1 million.

At the same time, SwissQuote’s revenue dropped from CHF 264,4 million in H1’21 to 200 million in H1’22, By assets, most of its revenue came from multi-currencies cash followed by stocks, ETFs, and cryptocurrencies.

Market momentum waning

SwissQuote’s performance happened as the market changed dramatically. As you recall, 2021 was a strong year for all brokers, including companies like Robinhood and WeBull. This happened as cryptocurrencies and meme stocks boomed.

The situation changed this year as stocks and cryptocurrencies dropped sharply. For example, SwissQuote’s crypto assets under custody crashed from CHF 2.8 billion in the second half of 2021 to CHF 1.1 billion in the first half of this year. 

Similarly, the volume of its eForex division dropped from over CHF 702.2 million to slightly under CHF 640 million.

SwissQuote expects that its net revenue will drop from CHF 472 million in 2021 to between 400 and 420 million CHF this year. It also expects that its pre-tax profift will drop from 223 million to 190 million francs.