Switzerland’s popular online trading bank Swissquote has provided a business update regarding its operations in the first half of 2020. As with many European registered brokers, the company expects to see healthy growth in revenues and profits as a result of Covid-19 related market volatility and trader activity.
The broker stated in its report that: “Net Revenues for the first half-year are now estimated over CHF 160 million (H1-2019: CHF 112.2 million) whilst the Pre-Tax Profit should exceed CHF56million (H1-2019: CHF 25.1 million). The outlook for 2020reported on 17 March 2020 anticipated that Net revenues and profitability would increase by 10percent. A revised outlook taking into account a more prudent second half-year 2020 will be provided as part of the publication of the half-year results on 11 August 2020.”
As such, the broker has managed to increase net revenues by more than 40% in the first half of this year as compared to 2019 and pre-tax profits by a whopping 120% YoY. Nonetheless, it will be important to study trading activity metrics and volumes from the broker in its more detailed 2020 projections, which will be published on August 11th, 2020. Such metrics from firms like GAIN Capital have suggested that retail trading volumes are dropping fast as, among other things, the global disruptions caused by Covid-19 subside and opportunities in other financial markets begin to take shape again.