Swissquote's profits have skyrocketed as funds have flooded into the online bank due to rising markets and the crypto-currency boom.

Online bank Swissquote more than doubled its net profit to 134.6 million Swiss francs ($144.0 million) in January-June from 50.4 million francs a year earlier, the company said in a results statement Friday.

The bank, based in Gland, western Switzerland, said this had surpassed its initial forecasts.

In the first six months of 2021, 49,552 new client accounts were opened and net new money inflow was 4.9 billion francs, taking client assets to a record high 50.2 billion francs as of June 30.

As a result, Swissquote is had raised its 2021 net-revenue target to 465 million francs from 365 million and its pre-tax profit target to 210 million francs from 130 million.

Two-thirds Growth in Revenues

Operating revenues were up 63.7 percent year on year in the first half to 266.4 million francs, resulting in net revenues of 264.4 million francs after adjustments for negative interest rates and fair value, up 64.5 percent year on year.

High Trading Volumes

Fuelled by strong client and asset growth as well as a favorable market environment, trading was strong in all business areas and asset classes in the first half, the bank said. Net fee and commission income grew 10.9 percent on the year to 87.1 million francs.

Surge in Crypto Income

Net crypto-assets income exploded to 63.2 million francs from 4.8 million a year earlier. Swissquote said the that in the first half institutional investors adopted crypto-assets and bitcoin at record high levels.

Strong trading activity across all asset classes boosted net trading income, which surged nearly sixteen-fold to 42.6 million francs.

However, the interest business, where net revenues fell 36.9 percent to 10.5 million francs, continued to be characterised by a low interest rate environment as the leasing business was not expected to reach critical size before next year, the bank said.

Costs Higher

First-half operating expenses were 26.9 percent higher than a year earlier at 129.3 million francs. Swissquote attributed this to a 20.2-million-franc rise in personnel expenses caused by accruals for variable remuneration and more than 50 temporary staff hired to cope with the large number of customer requests.