Investing.com -- In a surprising turn of events, Swissquote's shares plummeted by 10% on Thursday. The downturn followed the Swiss online bank's announcement of a downward revision in its 2026 profit forecast. The revised guidance is attributed primarily to a significant decline in cryptocurrency trading revenue, which has overshadowed the positive aspects of record client inflows and the growth observed in its Yuh neobanking unit. This article delves into the reasons behind the financial institution's guidance adjustment and the impact on its financials.
In its updated financial outlook, Swissquote, headquartered in Gland, revised its 2026 full-year pre-tax profit expectation down to approximately 365 million Swiss francs, a decrease from the previously anticipated figure of around 420 million francs. Similarly, the bank adjusted its full-year net revenue projection downward to approximately 730 million francs.
The bank's executives pointed to a challenging crypto asset environment, noting that the majority of crypto assets experienced substantial price declines in the first half of 2026. This downturn was a primary factor for the reduced net crypto assets income, which fell short of the bank's initial forecasts.
For the six-month period ending June 30, 2026, Swissquote reported a slight dip in net profit to 153.6 million francs, compared to 158.2 million francs in the same period of the prior year. Pre-tax profit also saw a decline, reaching 182.9 million francs from the previous 185.2 million francs reported in the first half of 2025.
Similarly, earnings per share experienced a minor decrease, dropping to 1.03 francs from 1.06 francs year-over-year, while diluted earnings per share were recorded at 1.02 francs, down from 1.05 francs previously.
Despite these profit contractions, net revenue for the first half increased slightly to 364.9 million francs from 359.2 million francs compared to the previous year. According to their interim financial statements, the press conference presentation listed net revenue as 364.2 million francs for the period, showing little variance from the latter half of 2025.
As per the revenue specifics, net fee and commission income saw a decline to 141.5 million francs from 148.7 million francs in the previous year. On the other hand, net interest income rose to 115.9 million francs from 108.1 million francs, and net trading income increased to 107.5 million francs from 102.4 million francs.
Operating expenses witnessed an uptick, rising to 181.3 million francs from 173.5 million francs a year earlier. This was attributed to higher payroll and related expenses, alongside increased costs in depreciation, amortization, and marketing, as reported by the company.
The report highlighted a downturn in operating income from securities trading, which fell to 300.7 million francs from 317.3 million francs year-over-year. A significant drop was noted in revenue generated from crypto assets, decreasing to 12 million francs from 43 million francs in the previous year.
Additionally, net fee and commission income related to crypto asset trading diminished to 17.7 million francs from 39.2 million francs. Pertinently, net trading income registered a loss of 5.3 million francs from the revaluation of the company’s crypto asset inventory, contrasting with a gain of 1.7 million francs in the previous year.
Operating income from leveraged forex showcased resilience by rising to 46.3 million francs from 41.9 million francs, reflecting strategic gains outside of the crypto sector.
Swissquote's relatively new Neobanking segment, formed following the acquisition of Yuh in July 2025, reported operating income of 17.8 million francs, though it has not yet made a substantial contribution to the overall operating profit as of June 30, 2026.
In terms of pension obligations, Swissquote reported an increase in the discount rate used to determine its net defined benefit obligation, moving up to 1.30% from 1.20% during the period. This adjustment impacted the defined benefit obligation negatively by 1.9 million francs.
In conclusion, while Swissquote continues to face challenges due to a volatile cryptocurrency market, the institution remains buoyed by solid client inflows and developmental growth in other financial service areas, signaling potential for recovery and strategic adaptation in the foreseeable future.
