CoinDesk
Swissquote's net crypto income fell 66.2% to 14.6 million Swiss francs ($18 million) in the first half, prompting the online bank to cut its full-year revenue and profit forecasts. Crypto trading volume dropped 63.5% to 2.58 billion francs ($3.2 billion), while the company lowered its annual net revenue outlook by about 30 million francs to 730 million francs. Shares in Swissquote Group fell 14% after the announcement. The bank attributed the miss to price declines across most cryptocurrencies and said the revised guidance reflects a weaker-than-expected crypto environment.
Why it matters
The figures show how directly Bitcoin and broader crypto market conditions can feed into a financial platform's earnings. The 66.2% income decline was steeper than the 63.5% volume drop, forcing Swissquote to reset its assumptions for the year.
Swissquote also booked a 5.3 million-franc loss on the crypto inventory it holds to support trading on its SQX exchange. The pressure therefore came from both lower customer activity and the inventory needed to facilitate that business.
Market impact
The 14% share drop was the immediate market verdict. Growth elsewhere kept overall revenue broadly flat and limited the decline in profit, but it did not prevent the guidance cut. Client assets rose nearly 20% to 96.3 billion francs, creating a clear split between a growing asset base and weaker crypto-trading income.
Investors will watch whether crypto volumes recover from 2.58 billion francs and whether client-asset growth continues to cushion the business. The result puts cyclical crypto transaction income at the centre of Swissquote's revised outlook.
Frequently asked questions
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What drove pressure on Swissquote's crypto business?
Swissquote attributed the weakness to price declines across most cryptocurrencies, which reduced trading activity. It also booked a 5.3 million-franc loss on inventory supporting SQX trading.
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How much did Swissquote's crypto trading volume fall?
Crypto trading volume fell 63.5% to 2.58 billion Swiss francs ($3.2 billion) in the first half.
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How much did Swissquote lower its net revenue outlook?
The bank cut its annual net revenue outlook by about 30 million Swiss francs to 730 million francs.
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How did Swissquote shares react to the guidance cut?
Shares in Swissquote Group fell 14% after the announcement.
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Did client assets grow despite the crypto slump?
Yes. Client assets rose nearly 20% to 96.3 billion francs, while growth elsewhere kept overall revenue broadly flat and limited the decline in profit.
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