Swissquote slashes guidance after crypto income plunges 66%

Total net revenue actually rose 1.7% to CHF 364.2 million in the first half, lifted by traditional financial services. Net fee and commission income climbed 13%, and non-crypto trading income rose 15.8%. That growth was not enough to prevent a 26% decline in net profit, which landed at CHF 153.6 million. Crypto income had been a high-margin line that contributed disproportionately to the bottom line, Swissquote said.

The company attributed the crypto slump to reduced risk appetite among clients, falling digital asset prices, geopolitical tensions, rising interest rates and a stronger US dollar. Swissquote operates SQX, a proprietary exchange that supports trading in more than 40 digital assets. The exchange is a differentiator in the European online brokerage market, where most competitors either avoid crypto or rely on third-party partnerships. Owning the exchange means absorbing the volatility, the company noted.

Swissquote is a regulated bank listed on the SIX Swiss Exchange. Its client base leans toward wealth management and institutional investors rather than retail traders. The revised guidance implies revenue of about CHF 366 million in the second half, essentially flat with the first six months. That suggests management does not expect a crypto recovery to lift the year.