Swissquote, an online bank, in the first half has profited from a boom in trading of cryptocurrency products. Profit exceeded expectations.
Swissquote had a profit of 25.7 million Swiss francs ($26 million) in the first six months of 2018, an increase of 44 percent year-on-year, the company said in a statement on Tuesday. Analysts had expected profit of 23.2 million francs. The number of customer accounts and trading activity increased both.
The number of customer trading accounts increased by 16,278 and the activity level of Swissquote clients also rose. They executed an average 11.8 transactions in the first half, one more than a year ago.
Demand for Cryptocurrencies
The company profited from brisk demand for products linked to cryptocurrencies, a development that may not be sustainable in the long run, even if bitcoin has recovered in recent days and weeks. The revenue from this source is likely to recede over the course of the year.
Client assets added a fifth to 25.5 billion francs as of June 30, 2018 with net new money amounting to 2.4 billion francs, 60 percent higher than a year ago. Swissquote expects full-year profit and revenues to increase 15 percent year-on-year, an upward adjustment from its previous target of 10 percent.
