Annual Results 2008

SWX, 13th February 2008

Agenda

Growth in 2008

4th Quarter 2008

New Services

Balance Sheet

Key Figures

Growth in 2008

swissquote.ch Swiss Leading Financial Portal

Largest Finance Portal in Switzerland
~400000 single visitors, 15 Mio Page Views per day

Swiss Banking Institute 2008 Cocca / Volkart / Siebenthal

Universitt Zrich
4

Strong Client Growth ~120000 Clients

140'000
120'000

Swissquote Clients

31,9%

100'000

31.9% Client growth compared to

2007

80'000
60'000
40'000

26265 new trading clients in

2008

20'000
0
2005

2006

2007

2008

Additional 2728 saving clients

per 31st December
Total: 119869 Clients
More than 150 new clients per
day

1.014m Equity Owners In Switzerland*

* Swiss Banking Institute 2008 Cocca / Volkart / Siebenthal

Universitt Zrich
6

Strong Growth Opportunities For Swissquote

Growth potential of more

than 200000 trading clients
in Switzerland
Taking into account a market
share of 55%* Swissquote
will add min. 100000 new
trading clients to its system
New client segments
(Saving, Forex and wealthy
private clients) generate
additional potential
* compared to the number of clients.
Source: NZZ am Sonntag, November 2008

Record Net New Monies In 2008

CHF million

1'400
1'200

1281
1200.6

Net New Monies

6.6%

961

1'000

Net CHF 1281m in 2008

800
600

More than 5m new monies per day

512

Target for 2009: More than 1billion

new monies

400
200
0
2005

6.6% more assets inflow compared

to 2007

2006

2007

2008

Assets Under Custody And Assets Inflow

Weekly net Assets In(Out)f low

Millions

70

Strong start in 2008 with an amount

of 115m in January.

65
60
55
50
45

Assets under custody of 4.6b

40
35
30

Clients are invested up to 77%.

Higher diversification.

25
20
15
10
5

12

10

52

2009

50

48

46

44

42

40

38

36

34

32

30

28

26

24

22

20

18

16

14

Clients Assets Touched By Financial Crisis [-12.7% In Q4]

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

Q4-08

Q3-08

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

10

Stable Revenues Despite Financial Crisis Record Revenues In 4th Quarter

CHF million

120'000
Net Revenues

Revenues of 111.7 million slightly

higher than the record results in
2007

100'000

+0,7%
80'000
60'000

Record revenues of 29.5 million in

4th quarter

40'000
20'000
0
2005

2006

2007

2008

Complete write-off of a Lehman

Bond in 3rd and 4th quarter
influenced the net profit by CHF
12.2 million (net after tax)

CHF million

70'000
60'000

--4.9%

Net Profit
Operating Profit

50'000
40'000

Respectable CHF 32.8 million of

net profit.

30'000
20'000
10'000
0
2005

11

Operating profit at same level than

2007. OP Profit margin of 51.1%

2006

2007

2008

Strong Equity

Total Equity of CHF 139.1 million

Equity Surplus of CHF 89.5m
BIS core capital ratio of 22.4%
Strong Balance Sheet

12

Key Figures 2008

2007

2008

13

Revenues

111,7m

+0.8m

+0.7%

Operating Profit

57.0m

-2.9m

-4.9%

Net Profit

32.8m

-14.8m

-31.0%

Clients

119868

+28993

+31.9%

Assets u. Custody

4540m

-1310.4

-22.4%

Total Equity

139.1m

+12.5m

+9.9%

4th Quarter 2008

14

Highest Growth Ever In 4th Quarter

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

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

15

Up To a Good Start In 2009. Goal: 25000 New Clients

Total Accounts [T,C,M]

Requests

140

110000

120

108000

100

106000

80

104000

60

102000

40

100000

20

98000

0
01.mars

112000

01.fvr.

160

01.janv.

114000

01.dc.

180

01.nov.

116000

01.oct.

200

01.sept.

118000

01.aot

220

01.juil.

120000

01.juin

240

01.mai

122000

01.avr.

16

Target

Better Trading Activity In 4th Quarter

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
Q4-08

Q3-08

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

17

Slow Start Into the 1st Quarter: Stable Bandwidth

Trades per client per year

50
45
40
35
30
25
20
15
10
5

18

01.mars

01.fvr.

01.janv.

01.dc.

01.nov.

01.oct.

01.sept.

01.aot

01.juil.

01.juin

01.mai

01.avr.

Controlled Costs Per Client

Costs

Marketing

Revenues

450
403

400

376

373

350

348

341

325
300

325
293

285

267

250

261

260

200
150

145

135

125

124

135

128

120

104

98

97

100
50

30

31

27

32

28

27

37

30

25

22

93
21

93
25

Q4-08

Q3-08

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

19

Higher Revenue Margins

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

20

Q3-08

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

0
Q4-05

Record Revenues In The 4th Quarter

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

Q4-08

Q3-08

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

21

New Services

22

Forex trading Platform, Saving accounts

Swissquote Quant Swiss Equity Fund

World Trading

Forex Trading Platform, Saving Accounts

FXBook
Constant growth since launch of
the Forex platform
Trading volumes of USD 400
million per day
CHF 1.6 million revenues in 4th
quarter

Saving accounts
Assets of CHF 90 Mio.
3000 Clients

23

Swissquote Quant Swiss Equities Fund

24

World Trading

Online World trading

80000 additional tradable securities from 50 stock exchanges

25

The Business Model of Swissquote

Swissquote turned in an outstanding performance in the financial crisis and will
also develop its business model in 2009
The Lehman bond influenced strongly the 3rd quarter and also to a certain
extend the 4th quarter. The position is now completely written off.
Client growth remains strong in all segments. The potential of 100000 new
clients for Swissquote is confirmed*
The growth in 2009 will remain strong with 25000 new clients and more than 1
billion net new monies. As soon as the gloomy mood on the stock markets will
reverse all those new clients will contribute stronger to the revenues
New client segments and services show potential.
If trading activity remains constant (compared with 2008) and in light of the
lower interest income, revenues in 2009 should be approximately as high as in
the previous year.
Swissquote is the biggest online bank in Switzerland. The growth is fuelled
through technology, strong balance sheet and transparent business model
New tools and services will be launched in 2009. Developments in the FX
business, new bank account interface, developments in the ePrivate banking
business
26

Balance Sheet

27

Balance Sheet Per 31st December 2008

28

Balance Sheet Per 31st December 2009

29

Structure of Assets and Liabilities

Structure of assets

2.3%

12.3%

1.5%
9.2%
78.5%
5.3%

Cash & deposits

Loans to customers
Other assets

Investment securities
Property & systems

Structure of liabilities and equity

10.3%

86.6%

13.4%

3.0%

Due to customers

30

Other liabilities

Equity

Key Figures

31

Key Figures For 2008

Comparison with Previous Year
CHF'000
Net Fee & Commission Income
Interest Income, net
Trading Results

2007

Q4-2008

Q3-2008

Change

Change [%]

-8.3%
18.9%
24.0%

18'604.7
7'004.2
3'868.3

16'284.9
8'693.0
2'622.5

2'319.8
(1'688.8)
1'245.8

14.2%
-19.4%
47.5%

0.7%

29'477.2

27'600.4

1'876.8

Change

Change [%]

(6'271.6)
4'976.0
2'090.7

69'530.3
31'337.3
10'809.4

75'801.9
26'361.3
8'718.7

Total Net Revenues

111'677.0

110'881.9

Payroll & Related Expenses

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

(24'617.3)
(20'500.0)
(9'522.2)

(24'419.4)
(17'078.3)
(9'437.0)

(197.9)
(3'421.7)
(85.2)

0.8%
20.0%
0.9%

(6'065.7)
(5'944.6)
(2'804.1)

(6'086.9)
(5'255.1)
(2'215.0)

21.2
(689.5)
(589.1)

-0.3%
13.1%
26.6%

Total Expenses

(54'639.5)

(50'934.7)

(3'704.8)

7.3%

(14'814.4)

(13'557.0)

(1'257.4)

9.3%

Operating Profit
Write down on investment securities, net of tax
Income Taxes

57'037.5
(12'227.3)
(12'003.4)

59'947.2
(12'374.7)

(2'909.7)
(12'227.3)
371.3

-4.9%
-3.0%

14'662.8
(2'880.8)
(3'035.7)

14'043.4
(9'346.6)
(2'919.6)

619.4
6'465.8
(116.1)

4.4%
-69.2%
4.0%

32'806.8

47'572.5

(14'765.7)

-31.0%

8'746.3

1'777.2

6'969.1

392.1%

Change

Change [%]

Net Profit
Operating Profit Margin
Net Profit Margin

32

2008

Comparison with Previous Quarter

795.1

51.1%
29.4%

54.1%
42.9%

31.12.2008

31.12.2007

Change

Total number of Trading Clients [units]

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

117'141
2'728
119'869

90'876
90'876

Assets under Custody [CHF m]

Total Net New Monies [CHF m]
Total Headcounts

4'539.7
1'281.0
236

Total Balance Sheet [CHF m]

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

1'346.1
139.1
89.5

6.8%

49.7%
29.7%

50.9%
6.4%

Change [%]

31.12.2008

30.09.2008

26'265
2'728
28'993

28.9%
31.9%

117'141
2'728
119'869

108'777
1'776
110'553

8'364
952
9'316

7.7%
53.6%
8.4%

5'850.0
1'200.6
213

(1'310.3)
80.4
23

-22.4%
6.7%
10.8%

4'539.7
315.2
236

5'198.6
226.5
232

(658.9)
88.7
4

-12.7%
39.2%
1.7%

1'311.0
126.6
74.8

35.1
12.5
14.7

2.7%
9.9%
19.6%

1'346.1
139.1
89.5

1'375.1
130.7
75.6

(29.0)
8.4
13.9

-2.1%
6.5%
18.4%