Swiss banking firm Swissquote Group (SQN) experienced significant market punishment following its first-half results, with shares down 12% in intraday trading after the company missed expectations and cut full-year targets. According to AlphaValue, the crypto revenue plunged 66% year-over-year to 14.6 million Swiss francs, falling less than half of what the consensus expected, which explains most of the market disappointment. The stock has now declined over 22% year-to-date, moving against a European banking sector that is sharply higher this year, with Swissquote ranking second to last in this year's stock market league table for Swiss financial companies, behind Partners Group. The market reaction reflects investor concerns about the company's heavy dependence on cryptocurrency trading, which has become a significant drag on overall performance.
Swiss banking firm Swissquote Group (SQN) has significantly revised its financial outlook following a dramatic decline in cryptocurrency trading performance. According to the company's first-half results, net crypto income plunged 66.2% to 14.6 million Swiss francs ($18 million) in the first half of 2026, down from 43.1 million francs in the previous year. The Gland, Switzerland-based fintech also reported a 5.3 million-franc loss on crypto inventory held to support trading on its SQX exchange, as reported by the company. Despite the crypto challenges, net revenues rose 1.7% year-over-year to 364.2 million francs, supported by growth in other business segments. Pre-tax profit slipped 1.2% to 182.9 million francs, though the pre-tax margin remained above 50% at 50.2%, demonstrating the company's diversified revenue base. The company had finished 2025 with 723.3 million francs in revenue and 420.2 million francs in pre-tax profit, though the latter benefited from a one-off accounting gain related to taking full control of Yuh.
Cryptocurrency trading activity at Swissquote experienced a substantial contraction during the first half, with monthly crypto trading volumes on the platform averaging 2.58 billion francs, down from 7.06 billion francs in the prior-year period, representing a 63.5% decline in trading activity. According to Jefferies, geopolitical tensions, high rates, a strong dollar and falling prices have pushed retail investors away from crypto, with the group now believing this market's recovery will take longer than hoped. The sharp decline reflects the ongoing volatility and reduced retail participation in cryptocurrency markets, which have struggled to regain momentum after a series of regulatory and macroeconomic headwinds. This represents a significant deterioration from the previous year when crypto trading volumes remained resilient despite lower annual crypto income.
Following the disappointing crypto performance, Swissquote has significantly reduced its full-year financial projections. The company cut its net revenue outlook by around 30 million francs to 730 million francs for 2026, down from its previous 760 million francs target. According to the company's statement, the revised guidance now reflects a weaker-than-expected crypto market environment that persisted through the first six months. The company also expects approximately 365 million francs in pre-tax profit for the full year, down from 385 million francs previously, with management not counting on a crypto recovery to bail out the year. The revised guidance implies roughly 366 million francs in the back half, essentially flat with the first six months, demonstrating the company's cautious outlook on crypto market recovery. However, management kept its 2028 pre-tax profit target of 500 million francs unchanged, signaling confidence in the long-term diversification strategy.
Despite crypto challenges, Swissquote demonstrated robust client acquisition and asset growth during the first half. The company added 64,011 accounts during the first six months, bringing the total across Swissquote and Yuh to 1.22 million accounts. Net new money reached 5.1 billion francs, only 2% below the exceptionally strong year-earlier period, while total client assets increased 19.8% year-over-year to a record 96.3 billion francs. Of that increase, 2.5 billion francs came from positive market performance, while cash held by clients rose by roughly 900 million francs during the first six months and remained around 15% of total assets. Trading accounts reached 690,828 at the end of June, 12.3% higher than a year earlier, while investment, savings and insurance accounts jumped 32% to 66,700. The persistence of inflows during weaker crypto conditions indicates that Swissquote's asset growth is not simply a function of digital asset prices, providing a buffer against crypto market volatility.
The crypto decline was offset by strong performance across other business segments during the first half. Net fee and commission income excluding crypto rose 13% to 123.7 million francs, while net trading income increased 15.8% to 64.4 million francs. Net interest income rose 7.2% to 115.9 million francs and net eForex income increased 9.1% to 45.6 million francs, with eForex benefiting from volatility in precious metals and commodities. Yuh continued expanding after Swissquote bought PostFinance's remaining 50% stake in July 2025, ending June with 423,409 accounts and 4 billion francs in client assets, up 9.9% since December. The company expects Yuh to reach break-even for the full year despite recording a 1.0 million franc incremental pre-tax loss during H1, with management funding customer acquisition before the platform reaches operating leverage. Total expenses increased 4.6% to 181.3 million francs, with depreciation rising 28.7% and marketing expenses increasing 14.4% as the company invests in AI and technology infrastructure.
