Swissquote Cuts 2022 Outlook as Crypto Income Plunges

Swissquote, a Swiss online bank and multi-asset trading platform, earns money from securities commissions, foreign exchange, interest and crypto-asset trading. Its digital-asset business became a meaningful revenue contributor during the 2021 crypto rally, leaving earnings exposed when token prices and trading volumes reversed. The episode underscored how quickly market swings can affect regulated financial institutions that offer cryptocurrency dealing and custody, even when their broader banking operations remain diversified.

On Aug. 10, 2022, Swissquote said first-half net crypto-asset income plunged 69.2% to CHF 19.5 million from CHF 63.2 million a year earlier, while net revenue fell 24.4% to CHF 200.0 million. The bank cut its 2022 net-revenue forecast to CHF 400 million-CHF 420 million from CHF 475 million and lowered its pre-tax profit target to about CHF 190 million from CHF 225 million. The shares fell as much as roughly 6% in early trading and were down 4.8% at CHF 104.40 around 9:35 a.m. in Zurich.