The popular European broker, Swissquote has just announced some preliminary profit figures for 2019 fiscal year which look promising. During the presentation of the 2018 full year figures, Swissquote announced an expected growth in net revenues of 5% to 10% for 2019. The forecast has now been achieved with total net revenues in the order of CHF 230 million.
The initial pre-tax profit forecast for 2019 of CHF 44 million was revised to CHF 48 million in July 2019. The company exceeded its pre-tax profit forecast as profits for 2019 amounted to CHF 50 million. With record client assets of CHF 32.3 billion and net new money inflows of CHF 4.6 billion, Swissquote is on track with the targets set for 2022. The full report for the 2019 financial year will be published on March 17, 2020.
This is a welcome sign as performance figures start coming in from brokers for 2019. As we mentioned previously, there is an apparent disparity between revenues among brokers in different regions, with some in the US reporting difficult times, while others in the UK showing healthy profits. It remains to be seen when final numbers are published for more brokerages in the industry to get a good sense of how revenue capture was impacted last year.