Results for the first Half of 2009

Press conference, 24th July 2009

Agenda

Edelweiss

Business Development

Trends for the 3nd Quarter

New Services

Interim Statement of Financial Positions

Key Figures

Edelweiss, Quant Fund & Co.

Edelweiss

The latest Marketing campaign

highlights the Swissness of our
bank
Swissquote is market leader in
Switzerland with the highest
growth and market share of above
55%
Growth potential is still high. The
need to develop the scope of
services as well

Re: Market Share* in Switzerland

20% of the adult population
domiciled in Switzerland
owns securities (1Mio)
40% of it are Self Directed
investors and use the
services of existing Online
Banks
Swissquote has a 55%
market share
We estimate the total market
potential for Swissquote to
be at min. 200000 clients

Source: Universitt Zrich, Swiss Banking Institute, Finanz und Wirtschaft 9.05.09

Re: Market Share* in Switzerland

The remaining 60% consists of:

pure private banking type of

clients (represents 25% of
shareholders)

Validators type of clients

(represents also 25% of
shareholders)

Some Non Investors

The new ePrivate Banking

services, Swissquote is working
on, are targeting the Validator
type of clients (in blue on the
chart)

Quelle: Universitt Zrich, Swiss Banking Institute

Swissquote Quant Swiss Equities Fund

Performance of the
Swissquote managed
investment fund continues
developing nicely
Serves as benchmarks for
the development of
ePrivate Banking tools

Business Development

Trading Volumes in 2nd Quarter 2009

12'000

35.0
darts

tpcpy

30.0

10'000

25.0

8'000

20.0
6'000
15.0
4'000

10.0

2'000

5.0

0.0
Q2-09
Q1-09
Q4-08
Q3-08
Q2-08
Q1-08
Q4-07
Q3-07
Q2-07
Q1-07
Q4-06
Q3-06
Q2-06
Q1-06
Q4-05
Q3-05
Q2-05
Q1-05
Q4-04
Q3-04
Q2-04
Q1-04
Q4-03
Q3-03
Q2-03
Q1-03

Recovery of trading volumes in Q2-2009

Tpcpy = 18
Darts = 8750
9

Commission, Interest & Trading Income

CHF '000
35'000
Trading

30'000

Interest

25'000

Commission

20'000
15'000
10'000
5'000
0
Q2-09

Q1-09

Q4-08

Q3-08

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

Q4-05

Q3-05

Q2-05

Q1-05

Fee and commission income remained stable thx to client growth

Interest revenue collapsed
Trading revenues continue developing nicely (eForex)
10

Client Growth
10'000
9'000

Saving Client Growth

8'000

Trading Client Growth

7'000
6'000
5'000
4'000
3'000
2'000
1'000
0

Q1-09

Q4-08

Q3-08

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

Q4-05

Q3-05

Q2-05

Q1-05

Q4-04

Q3-04

Q2-04

Q1-04

Growth remains strong

6348 net clients in 2nd quarter 2009
Saving clients accounts are growing strongly (+ 1550 clients)
The Swissquote success story goes on
11

Assets Under Custody Recover in 2nd Quarter 2009

CHF million
6'500
6'000
5'500
5'000
4'500
4'000
3'500
3'000
2'500
2'000
1'500

Q2-09

Q1-09

Q4-08

Q3-08

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

Q4-05

Q3-05

Q2-05

Q1-05

240.3 Mio Net new funds in Q2-2009

Rebound in markets and net new fund increase Assets under
Custody to 5.5 Mia

12

Costs and Revenues per Client and Quarter

Costs

Marketing

Revenues

450
400
350
300
250
200
150
100
50
0
Q1-09
Q4-08
Q3-08
Q2-08
Q1-08
Q4-07
Q3-07
Q2-07
Q1-07
Q4-06
Q3-06
Q2-06
Q1-06
Q4-05
Q3-05
Q2-05
Q1-05
Q4-04
Q3-04
Q2-04
Q1-04
Q4-03
Q3-03
Q2-03
Q1-03

Shrinking of revenues stopped. Interest rates at lowest levels hit

revenues per client
Consistent control over cost and focus on productivity since 2003
secures a strong 10.7 Mio EBT
13

Investments in marketing and new services go on

Quarterly Revenues Chart

32'500
30'000
27'500
25'000
22'500
20'000
17'500
15'000
12'500
10'000
7'500
5'000
2'500
0

Operating Profit
Quarterly Revenues

Q1-09

Q4-08

Q3-08

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

Q4-05

Q3-05

Q2-05

Q1-05

Revenues at 25 Mio up 7.2% compared to previous quarter

10.7 Mio Operating profit and 8.5 Mio Net profit

14

Asset Margin
Assets under Custody

Asset Margin

7'000

300

6'000

250

5'000

200

4'000
150
3'000
100

2'000

50

1'000
0

Q2-09

Q1-09

Q4-08

Q3-08

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

Q4-05

Q3-05

Q2-05

Asset margin at 2% despite much lower interest revenues

15

Quarterly Profit Chart

CHF '000

18'000

Operating Profit

16'000

Net Profit

60%
50%

OP Margin

14'000

40%

12'000
10'000

30%

8'000
20%

6'000
4'000

10%

2'000
0%
Q2-09

Q1-09

Q4-08

Q3-08

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

Q4-05

Q3-05

Q2-05

Robust Profit of 8,5 Mio. in 2nd quarter 2009

Operating profit margin of 42,9% (33.9% Net profit margin)

16

Key Figures First Half (compared to previous year)

H1-2008

H1-2009

17

Revenues

48.3m

-6.3m

-11.4%

Operating profit

20.3m

-8.0m

-28.2%

Net profit

15.9m

-6.3m

-28.5%

Clients

131834

+27587

+26.5%

Assets u. Custody

5485m

-23m

-0.4%

Equity

152.4m

+16.1m

+11.8%

Key Figures 2nd Quarter (compared to previous quarter)

Q1-2008

Q2-2009

18

Revenues

25.0m

+1.7m

+7.2%

Operating profit

10.7m

+1.1m

+11.8%

Net profit

8.5m

+1.0m

+13.4%

Clients

131834

+6348

+5.1%

Assets u. Custody

5485m

+841.2

+18.1%

Equity

152.4m

+7.2m

+5.0%

Trends for the 3rd Quarter

19

Target growth in 3rd quarter : + 5000 New Clients

TotalAccounts[T,C,M]

Requests

140

120000

120

118000

100

116000

80

114000

60

112000

40

110000

20

108000

0
01.sept.

122000

01.aot

160

01.juil.

124000

01.juin

180

01.mai

126000

01.avr.

200

01.mars

128000

01.fvr.

220

01.janv.

130000

01.dc.

240

01.nov.

132000

01.oct.

20

Target

Weak trading volumes in June, improving in July

Trades per client per year

50
45
40
35
30
25
20
15
10
5

21

01.sept.

01.aot

01.juil.

01.juin

01.mai

01.avr.

01.mars

01.fvr.

01.janv.

01.dc.

01.nov.

01.oct.

New Funds Developing Positively +68.9m since 1st July

Net Assets Inf low"

Assets Change

Total Assets

600

6'250

400

6'000
5'750

200

5'500

-400

22

sept..09

aot.09

juil..09

juin.09

mai.09

avr..09

mars.09

fvr..09

janv..09

janv..09

dc..08

nov..08

oct..08

sept..08

aot.08

juil..08

-200

juin.08

0
5'250
5'000
4'750

-600

4'500

-800

4'250

New Services

23

Dynamic Saving Accounts

Since 1st April 2009 rate leadership

at 1,8%
Already more than 145 Mio. assets
4885 clients at 30 June 2009
(+ 1550 in the 2nd quarter)
Increased scope for saving clients
with ETF saving plans

24

Dynamic Saving Accounts Saving Plans

The concept
ETF saving plans at
attractive conditions
(CHF 9.- flat pro
portfolio)
Initially 67 SIX listed
ETFs from most
reputable issuers
4 preset saving plans.
Savers can customize
their plans individually

25

Dynamic Saving Accounts Saving Plans

Innovative Tools
Full automation of the
investment process
Investment planning
assisted by a robot
Efficient design and
modern ergonomy
The new saving tool for
the Internet era.

26

Currency- and Precious Metal-Trading

Successful new services with

already 1100 active clients
New currency (SEK) added. In total
26 tradable currency pairs
Since 24 July, trading in gold and
silver is possible. No commission.
Spread of 60 cts for gold and 4 cts
for silver

27

Currency- and Precious Metal-Trading

28

Interim Statement of Financial Positions

29

Interim Statement of Financial Position at 30 June 2009

[CHF m]
ASSETS
Deposit at central bank
Treasury Bills
Loans and advances to banks
Trading assets
Loans to customers
Investment securities
Property & systems
Other assets

61.3
668.0
496.4
17.6
84.9
267.6
31.9
19.6

31.12.2008 Change

293.2 - 231.9 -378.3%

765.7 - 269.3 -54.3%
15.5%
71.7
13.2
38.0%
165.9
101.7
1.9%
31.3
0.6
18.3
1.3
6.6%

Total assets

1,647.3

1,346.1

301.2

18.3%

LIABILITIES AND EQUITY

Liabilities
Due to customers
Other liabilities

1,451.8
43.1

1,166.3
40.7

285.5
2.4

19.7%
5.6%

1,494.9

1,207.0

287.9

19.3%

Total liabilities
Equity
Ordinary shares
Reserves & retained earnings
Treasury shares

2.9
175.1
(25.6)

2.9
160.8
(24.6)

14.3
(1.0)

0.0%
8.2%

Total equity

152.4

139.1

13.3

8.7%

1,647.3

1,346.1

301.2

18.3%

Total liabilities and equity

30

30 June 2009

3.9%

Structure of Financial Positions at 30 June 2009

31

Equity and Surplus

CHF million

180
160

Total Equity

Equity Surplus

140
120
100
80
60
40
20
0
Q2-08

32

Q3-08

Q4-08

Q1-09

Q2-09

Key Figures

33

Key Figures for 1st Half of 2009

Comparison with Previous Year
CHF'000

H1-2008

Change

Change [%]

Q2-2009

Q1-2009

Change

Change [%]
18.3%
-31.6%
-2.5%

Net Fee & Commission Income

Interest Income, net
Trading Results

33'807.4
5'613.9
8'926.7

34'640.7
15'640.2
4'318.7

(833.3)
(10'026.3)
4'608.0

-2.4%
-64.1%
106.7%

18'322.8
2'280.6
4'405.9

15'484.6
3'333.4
4'520.7

2'838.2
(1'052.8)
(114.8)

Total Net Revenues

48'348.0

54'599.6

(6'251.6)

-11.4%

25'009.3

23'338.7

1'670.6

Payroll & Related Expenses

Other Operating Expenses (incl. Depr. & Provision)
Marketing Expenses

(12'144.6)
(11'865.1)
(3'994.3)

(12'464.7)
(9'300.3)
(4'503.2)

320.1
(2'564.8)
508.9

-2.6%
27.6%
-11.3%

(6'080.6)
(6'176.8)
(2'012.3)

(6'064.0)
(5'688.3)
(1'981.9)

(16.6)
(488.5)
(30.4)

0.3%
8.6%
1.5%

Total Expenses

(28'004.0)

(26'268.2)

(1'735.8)

6.6%

(14'269.7)

(13'734.2)

(535.5)

3.9%

Operating Profit
Income Taxes

20'344.0
(4'410.8)

28'331.4
(6'048.2)

(7'987.4)
1'637.4

-28.2%
-27.1%

10'739.6
(2'271.6)

9'604.5
(2'139.2)

1'135.1
(132.4)

11.8%
6.2%

Net Profit

15'933.2

22'283.2

(6'350.0)

-28.5%

8'468.0

7'465.3

1'002.7

13.4%

Change

Change [%]

Operating Profit Margin

Net Profit Margin

34

H1-2009

Comparison with Previous Quarter

42.1%
33.0%

51.9%
40.8%

30.06.2009

30.06.2008

Change

Total number of Trading Clients [units]

Total number of Saving Clients [units]
Total Number of Clients

126'949
4'885
131'834

103'476
771
104'247

Assets under Custody [CHF m]

Total Net New Monies [CHF m]
Total Headcounts

5'485.0
530.9
227

Total Balance Sheet [CHF m]

Total Equity [CHF m]
Equity Surplus [CHF m]

1'647.3
152.4
100.6

7.2%

42.9%
33.9%

41.2%
32.0%

Change [%]

30.06.2009

31.03.2009

23'473
4'114
27'587

22.7%
533.6%
26.5%

126'949
4'885
131'834

122'151
3'335
125'486

4'798
1'550
6'348

3.9%
46.5%
5.1%

5'508.0
739.3
233

(23.0)
(208.4)
(6)

-0.4%
-28.2%
-2.6%

5'485.0
240.3
227

4'643.8
290.6
228

841.2
(50.3)
(1)

18.1%
-17.3%
-0.4%

1'352.9
136.3
83.3

294.4
16.1
17.3

21.8%
11.8%
20.8%

1'647.3
152.4
100.6

1'501.4
145.2
95.2

145.9
7.2
5.4

9.7%
5.0%
5.7%