Dear shareholders,

The total number of accounts increased by more than 75,000 in 2024, close to the combined growth of 2023 and 2022. Financially, 2024 was also a record-breaking year, with operating income reaching CHF 664.3 million (+25.1%) and the operating profit climbing to CHF 345.6 million (+35.3%). The diversification of the business model helped Swissquote navigate the pressure on net interest income following a 125 bps decline in CHF interest rates. Non-transaction-based revenues accounted for 48% of total net revenues, while net revenues from customers domiciled outside of Switzerland made up 42%, underscoring the evolution into not only a multi-asset-class platform but also an international one. The operating profit at CHF 345.6 million is very close to the CHF 350 million target initially set for 2025 back in March 2022. This reflects an average annual operating profit growth over 15%. For 2024, the Board of Directors is proposing a dividend of CHF 6.00 per share, corresponding to approximately 30% of net profit. Looking ahead to 2028, Swissquote expects to continue growing with a new operating profit target set at CHF 500 million. 

In 2024, operating income reached CHF 664.3 million, an increase of +25.1% compared to the previous year (CHF 530.9 million). Most of the revenue categories showed growth. The crypto market benefitted from a global change of perception and the total crypto market capitalisation almost doubled during the year, as Bitcoin surpassed the threshold of USD 100,000 at the end of 2024. In that context, net crypto assets income increased by +353.2% to CHF 85.5 million, which represented approximately 13% of total operating income. Net fee and commission income (excluding crypto assets) increased by +24.7% to CHF 178.2 million, driven by growing investor appetite for foreign securities. Despite a declining interest rate environment, net interest income continued to grow (+5.2% compared to last year) supported by higher cash deposits of customers (total balance sheet up by +33.4%) and a more favourable currency mix in such cash deposits. Net eForex income remained affected by low FX volatility and decreased by -6.4% to CHF 94.7 million compared to last year. Net trading income (excluding eForex and crypto assets) increased by +48.7%, supported by stronger foreign-currency-designated trading activity.

In the context of record-breaking net revenues, a large portion of the increase impacted positively profitability. Total expenses grew by +16.5% to CHF 315.7 million, mainly because of higher payroll and related costs. Payroll and related expenses increased by +15.6% as a result of a higher average headcount (+7.4%) and expenses attributable to variable remuneration (CHF 6.5 million increase compared to 2023). In a context of a positive year 2024, marketing expenses were strategically increased by +18.2% to further support and sustain momentum (initial budget at CHF 29 million). The increase of other operating expenses and depreciation also included a few one-off costs (CHF 7.1 million). In 2024, the operating profit grew by 35.3% to a new record level of CHF 345.6 million (CHF 255.4 million). The operating profit margin grew to 52.0% (48.1%), while the net profit increased to CHF 294.2 million (CHF 217.6 million), with the net profit margin rising to 44.3% (41.0%).

The total number of accounts increased during 2024 by more than 75,000 accounts, reaching a total of 650,089 as of 31 December 2024. Client assets reached CHF 76.3 billion at the end of 2024, an increase of +31.5% thanks to net new money and positive market impact. The net new money reached CHF 8.3 billion (CHF 5.0 billion) and was purely organic. All geographies showed positive momentum, with particular growth in Switzerland and in Europe, where the net new money reached respectively CHF 5.1 billion and CHF 2.2 billion. In 2024, customer deposits increased by CHF 2.7 billion and the portion of such customer deposits remained stable (as a percentage of total client assets) at 15%. Interestingly, the relative importance of CHF customer deposits decreased down to 50% in 2024. The remaining 50% consisted mainly of USD and EUR customer deposits.

As at 31 December 2024, the mobile finance app Yuh increased the total number of accounts to more than 285,000 (+48.0% compared to last year) and its client assets to CHF 2.8 billion (+101.6% compared to last year). Ahead of its initial business plan, Yuh reached profitability (on a stand-alone basis) already in 2024 and the contribution to Swissquote’s operating profit was positive. 

For the time being, the primary focus of Yuh remains the consolidation of its leadership position in Switzerland. The operating profit contribution is to remain positive in 2025.

As of 31 December 2024, total balance sheet assets reached CHF 13.3 billion (CHF 10.0 billion). During the period, a change in the currency mix of the balance sheet was observed due to higher activity on foreign securities and crypto assets. As a consequence, the relative importance of cash and balances with central banks (mainly CHF currency) decreased to 42% (46%). The capital ratio, which already takes into account the dividend proposed to be paid in 2025, remained solid at 23.5% (25.1%).

In 2024, Swissquote continued its intense dialogue with shareholders, especially in relation to corporate governance, remuneration and sustainability matters. 

Swissquote reviewed and evaluated the points raised by shareholders as they play an important role in improving its disclosure practices. As an example of such improvements, the Board of Directors decided to further improve disclosure on its members’ qualifications and skills, which are presented in a detailed table in the Corporate Governance Report in line with best practice.

In terms of organisation, whilst there have been no changes in the composition of the Board of Directors, the Audit & Risk Committee was further strengthened with the appointment of Esther Finidori. This appointment is in line with the new Audit & Risk Committee’s expanded responsibilities, which now include the review of the Sustainability Report. At the level of the Executive Management, Swissquote welcomed Tara Yip, a long-standing employee in charge of the Human Resources department, to the position of Chief People Officer (CPO) as from 1 January 2025. This newly created role of CPO underscores Swissquote’s commitment to fostering a people-centric culture, enhancing employee engagement, and supporting the professional growth and well-being of its workforce.

With respect to remuneration, Swissquote noted that its shareholders appreciated its response to the comments made previously, in particular regarding the extensive disclosure of the metrics of the objectives set to the Executive Management and the rebalancing of the Executive Management’s remuneration towards the longer term. Shareholders equally appreciated the adoption of shareholding guidelines applying to the members of the Executive Management and the extension of the information on the CEO pay-ratio prepared in line with the GRI Standards.

At the centre of Swissquote’s sustainability strategy lies the double materiality assessment, which has been reviewed and updated in 2024 by involving and taking into consideration external experts views for the first time. The materiality assessment is a cornerstone of the Group’s sustainability strategy and guides the Board of Directors in the setting of the objectives to the Executive Management and the whole organisation. In 2024, Swissquote improved transparency in its non-financial reporting by clearly disclosing, for each material topics, its goals and key performance indicators with a 3-year history. In addition, we developed a comprehensive transition plan for achieving net zero scopes 1 and 2 emissions by 2030. Furthermore, the geographic scope of carbon disclosures was extended, whilst scope 3 emissions relating to category 15 are now disclosed in the Sustainability Report. Finally, we enhanced our mobility plan, increased significantly management training hours and reached an all-time high Customer NPS of 39. 

At this year’s annual General Meeting, the shareholders will for the second time vote on the Sustainability Report, which serves as the report on non-financial matters required by the Swiss law. In that context, the Sustainability Report was subject to a larger scope of external assurance, in particular as the TCFD report is now covered.

Swissquote greatly appreciated the time and active participation of its shareholders and is looking forward to maintaining this valuable dialogue in the future.

On behalf of the Board of Directors and the Executive Management, we would like to thank our clients for their loyalty and invaluable contribution to Swissquote’s success and long-term solidity. Thanks to their informed feedback, suggestions and requests, we continuously seek to improve and innovate to deliver exceptional and refreshing banking experiences. We also want to express our thanks to our shareholders for their trust and support, as well as to our employees for their hard work and unwavering commitment. And finally, we extend our thanks to our cooperation partners for their collaboration and unfailing expertise in helping us to grow our business.