Swiss banking software producer Avaloq cleared several hurdles last year. Its financial results for the year, which it closed a massive Raiffeisen migration, cast both light and shadows.

2018 was the first full year under new Avaloq boss Juerg Hunziker after founder Francisco Fernandez retreated to the board 15 months ago. Seconded by private equity investor Warburg Pincus, 2018 was Hunziker's year to illustrate what the Zurich-based banking software firm is capable of.

Avaloq is growing: revenue rose 6 percent on an underlying basis to 579 million Swiss francs ($583 million). This represents a faster rate of growth than the prior year, when revenue edged just 3 percent higher, as finews.com reported. The company doesn't report complete results – it won't be required to until it lists its shares, which Warburg Pincus has said could happen as soon as 2021.

Profit Edges Lower

Avaloq's earnings before interest, tax, depreciation and amortization fell to 90 million francs from 100 million, while cash at hand stood at 144 million francs. In short, Hunziker and his seven-person management team haven't managed to turn the corner just yet.

To be sure, Avaloq ticked off several key projects last year: «Rainbow», or the migration of 253 Raiffeisen cooperative banks to its platform concluded last year. The project, described by Warburg Pincus executive as «the mother of all tech projects», tied considerable resources which should be freed up this year.

The two firms severed their ties earlier this year when Raiffeisen agreed to buy out a technology venture it shares with Avaloq. The St. Gallen-based bank will put aside 69 million francs to do so.

Cloud Takes Shape

Last June, Avaloq unveiled a tie-up with IBM to build a so-called Swiss banking cloud. Just over 20 Avaloq staff moved to the U.S. tech giant for the project, which Avaloq on Tuesday said will begin setting up this year ahead of a roll-out in Asia and Europe, Africa, and the Middle East.

Avaloq also began working with fintech Metaco and Gazprombank in Switzerland to integrate a crypto asset solution for clients by the middle of next year, as finews.com reported. The crypto and cloud projects aside, Avaloq won several key clients including Intesa Sanpaolo, Smith & Williamson and China's Industrial Bank as new software clients.