Results for the

first Half of 2011

29th July 2011

Agenda

Swissquote: Strategic Positioning

Growth and Key Figures for the 1st Half of 2011

Client Groups

Balance Sheet

Swissquote: Strategic Positioning

Swissquote Bank is growing strategically since 11 years in two directions:

New Services
Geographical Reach
Two cooperative ventures with major potential achieved in the 2nd quarter
Online Mortgages with BLKB (Basellandschaftliche Kantonalbank)
Strategic partnership with Swiss Life in the area of bank products
The integration of ACM could be completely fulfilled on the 10th of June. The
activity of ACM did strongly contribute to the results of Swissquote in the
1st half of 2011.

Online Mortgages with BLKB

Cooperative venture with one of the few triple A banks

in Europe.
The service is in its launch phase and will continuously
be developed over the next month.
Well positioned prices 10 to 15 bps below the cheapest
mortgages in Switzerland.
The mortgages are booked on the balance sheet of
BLKB. Swissquote is providing sales and client relation
management. The margins are shared at equal basis.
Since the launch (7th June) already 300 mortgage
requests received, 60 mortgage contracts proposed
and 15 contracts signed.
BLKB has taken a 5% stake in Swissquote.

Strategic partnership with Swiss Life

Strategic partnership with Swiss Life in the area of

bank products.
Swissquote Bank will act as custodian bank for Swiss
Life and will handle the settlement and management of
saving and investment products.
Approximately 20000 saving, time deposits and fund
accounts with some CHF 450 million assets will be
transferred to Swissquote Bank as of 1st January 2012.
More products and services to be developed in the
field of assurbanking, the distribution of bank services
via the insurance channel.

Swissquote: Strategic Positioning

Geographical
Reach

White
Labels
EU
Licence

ePrivate.
Banking

SIX

Fund
Shop

More
Markets

AM
Tool

TOFF

Saving

eForex
(ACM)

Dubai
(Cat 4)

eMorteMortgage

SL
PartnerPartnership

CH
Private
Bank

Service
Level

Growth and Key Figures for the 1st Half of 2011

Revenues & Profitability

CHF '000

Fee & Commission

Interest

Trading

80'000.0
70'000.0
60'000.0

Revenues grew year-on-year by 36.1% to

CHF 67.5 m

50'000.0
40'000.0
30'000.0
20'000.0
10'000.0
0.0
H1-2007

CHF '000

H1-2008

Marketing

H1-2009

H1-2010

Other Operating Expenses

H1-2011

Payroll

-50'000.0
-45'000.0
-40'000.0
-35'000.0

Different levels of growth in the three

revenue segments:
Net fee and commission income: +2.3%
Interest income: +46.6%
Forex: +125.6%
Operating expenses increased due to
higher personnel expenses
(ACM takeover)

-30'000.0

Total expenses: CHF 44.3 m slightly

lower than 1st quarter 2011

-25'000.0
-20'000.0
-15'000.0
-10'000.0
-5'000.0
0.0
H1-2007

H1-2008

H1-2009

H1-2010

H1-2011

Revenues & Profitability

CHF '000

Operating Profit

Net Profit

35'000.0
30'000.0
25'000.0
20'000.0
15'000.0

Cost/Income Ratio stable at ~66%

10'000.0
5'000.0
0.0
H1-2007

H1-2008

H1-2009

H1-2010

H1-2011

Operating profit at CHF 23.1 m

(+ 32.1%)
Net profit at CHF 17.8 m (+29.9%)

Cost/Income Ratio

70.0%
65.0%

64.7%

65.7%

H1-2010

H1-2011

57.9%

60.0%
55.0%
48.1%

50.0%
45.0%

43.9%

40.0%
H1-2007

H1-2008

H1-2009

Strong CHF impacted the net profit by

some CHF 1.5m. About two third of the
Revenues are made in foreign
currencies (mainly EUR and USD).

Equity and EPS

Constant growth in equity (CHF 218 m)

and equity surplus (CHF 125 m)
Strong growth in earning per share at
CHF 1.24 in the first half of 2011

10

Clients and Segments

554

9'899
16'258

Trading
Saving
eForex
ePrivate
Banking

23429 new accounts year-on-year

152'987

Dynamic growth of saving and

eForex clients
Total Accounts

Aggregate of more than 179698

accounts

190'000
180'000
170'000
160'000
150'000
140'000
130'000
120'000
110'000

11

Q2-11

Q1-11

Q4-10

Q3-10

Q2-10

Q1-10

Q4-09

Q3-09

Q2-09

Q1-09

Q4-08

Q3-08

100'000

Assets and New Monies

CHF 'm

Net New Monies

600.0
515.1
500.0

431.4
383.7

400.0

353.9
329.9
308.1

315.2
290.6
300.0
240.3
226.5

293.3

200.0
94.0

100.0

CHF 'm

Q2-11

Q1-11

Q4-10

Q3-10

Q2-10

Q1-10

Q4-09

Q3-09

Q2-09

Q1-09

Q4-08

Q3-08

0.0

Inflow of 94 million in the first

quarter of 2011
Inflow of CHF 50 million in the
three first weeks of July

Total Assets

9'000.0
7'720.4

8'000.0
7'000.0
6'000.0
5'000.0
4'000.0
3'000.0
2'000.0
1'000.0

12

Q2-11

Q1-11

Q4-10

Q3-10

Q2-10

Q1-10

Q4-09

Q3-09

Q2-09

Q1-09

Q4-08

Q3-08

0.0

1 billion net new monies expected

in 2011

Revenues and Client Groups

CHF000

Net Fee & Commission

Income

Trading

Saving

33263.3

+2.3%

Net Interest Income

5165.9

+49.4%

Trading Results

6220.4

+14.9%

44649.5

+7.9%

Total

2674.9

2674.9

eForex

+41.5%

+41.5%

Total

33263.3

+2.3%

7840.8

+11.6%

20145.0

+221.5%

26365.4

+125.6%

20145.0

+221.5%

67469.5

+36.1%

Different levels of growth from the three revenue segments

Strong CHF impacted Net Fee & Commission Income since 50% of the
transactions are settled in foreign currencies
Strong growth (+221.5%) in the eForex segment

13

Client Groups

14

15

Trading Accounts - Growth

CHF m
Trading Accounts

Trading Assets

200'000
180'000
160'000
140'000
120'000
100'000
80'000
60'000
40'000
20'000
0

9'000
8'000
7'000
6'000
5'000
4'000
3'000
2'000
1'000
Q2-11

Q1-11

Q4-10

Q3-10

Q2-10

Q1-10

Q4-09

Q3-09

Q2-09

Q1-09

Q4-08

Q3-08

152987 Trading accounts (+7.9%)

CHF 7.2 bn assets under custody (+11.3%)
Assets under custody lower than previous quarter. Difficult markets
are impacting the performance of the client portfolios

16

Trading Accounts - Transactions

Equity Transactions

tpcpy

35.0

600000

30.0

500000

25.0

400000

20.0

300000

15.0

200000

10.0

100000

5.0

0.0
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
Q3-06
Q4-06
Q1-07
Q2-07
Q3-07
Q4-07
Q1-08
Q2-08
Q3-08
Q4-08
Q1-09
Q2-09
Q3-09
Q4-09
Q1-10
Q2-10
Q3-10
Q4-10
Q1-11
Q2-11

700000

Transactions per client per year reached lowest

value in the 2nd quarter at 11.1
425000 equity trades

17

Saving Accounts Growth and Total Assets

Saving Accounts

CHF m

Saving Assets

18'000

500
450
400
350
300
250
200
150
100
50
0

16'000
14'000
12'000
10'000
8'000
6'000
4'000
2'000
Q2-11

Q1-11

Q4-10

Q3-10

Q2-10

Q1-10

Q4-09

Q3-09

Q2-09

Q1-09

Q4-08

Q3-08

16258 Saving accounts (+34.1%)

Conservative Growth: CHF 451.6 million assets
under custody (+17.0%)

18

Growth of Balance Sheet and Interest Revenues

CHF m

Total Balance Sheet

CHF '000

Interest Revenue

3'000.0

10'000
9'000
8'000
7'000
6'000
5'000
4'000
3'000
2'000
1'000
0

2'500.0
2'000.0
1'500.0
1'000.0
500.0

Q2-11

Q1-11

Q4-10

Q3-10

Q2-10

Q1-10

Q4-09

Q3-09

Q2-09

Q1-09

Q4-08

Q3-08

0.0

3.8%
14.3%

Growth in Interest revenues. Stronger

balance sheet

82.0%

Revenues negatively impacted by the strong

CHF and the low interest rates
CHF 4.0 million revenues in the 2nd quarter
(+2.0%)
19

CHF

EUR

USD

eForex Accounts Growth and Total Assets

eForex Accounts

CHF m

eForex Assets

160.0

12'000

140.0

10'000

120.0
8'000

100.0

6'000

80.0
60.0

4'000

40.0
2'000

20.0
Q2-11

Q1-11

Q4-10

Q3-10

Q2-10

Q1-10

Q4-09

Q3-09

Q2-09

Q1-09

Q4-08

0.0
Q3-08

About 10000 active clients (+4.9% vs. previous quarter)

CHF 128 Mio. assets under custody.

20

eForex--Konten Handelsvolumen
eForex

CHF bn

FX Volume

Margin (DPM)

140

140.0

120

120.0

100

100.0

Q2-11

Q1-11

Q4-10

0.0
Q3-10

0
Q2-10

20.0
Q1-10

20
Q4-09

40.0

Q3-09

40

Q2-09

60.0

Q1-09

60

Q4-08

80.0

Q3-08

80

Volumes of CHF102.1 bn in the 2nd quarter

Expected total volume in 2011: CHF 450 bn (i.e. USD 550 Mia.)
Revenues of CHF 20.1 million with eForex clients
Stable margin of 100 per million (DPM)

21

Balance Sheet

22

Balance Sheet on 30th June 2011

CHF m

Structure in %

Actual

Actual

30.06.2011

Assets
Cash & TBs with Central Bank
Loans & advances to banks
Investment securities
Loans & advances to customers
Immobilisations
Other assets

31.03.2011

30.06.2011

31.03.2011

945.9
649.4
671.7
124.8
42.1
82.2

995.3
470.3
681.4
131.7
40.9
78.4

-49.4
179.1
-9.7
-6.8
1.2
3.8

37.6%
25.8%
26.7%
5.0%
1.7%
3.3%

41.5%
19.6%
28.4%
5.5%
1.7%
3.3%

Total

2'516.1

2'398.0

118.1

100.0%

100.0%

Liabilites & Equity

Due to customers :
Trading accounts
Saving accounts
Other liabilities
Equity

1'805.3
451.4
40.7
218.7

1'692.2
448.4
46.3
211.1

113.0
3.0
-5.5
7.6

71.7%
17.9%
1.6%
8.7%

70.6%
18.7%
1.9%
8.8%

Total

2'516.1

2'398.0

118.1

100.0%

100.0%

125.4

115.3

10.1

5.0%

4.8%

22.3%

20.7%

1.6%

93.3

95.8

Equity surplus
Tier 1 ratio
Risk Weighted Assets

* Assuming interbanking and other financial markets functionning normally.

23

Chg

Balance Sheet Structure on 30th June 2011

Structure of Assets

671.7; 27%
649.4; 26%

124.8;
5%

42.1; 2%
82.2; 3%

945.9; 37%

24

Cash & TBs with Central Bank

Loans & advances to banks

Investment securities

Loans & advances to customers

Imobilisations

Other assets

Key Figures

25

Key Figures Q2Q2-2011

26

H1H1-2011

H1H1-2010

Revenues

67.5m

+17.9m

+36.1%

Operating profit

23.1m

+5.6m

+32.1%

Net profit

17.8m

+4.1m

+29.9%

Client acounts

179698

+23429

+15.0%

Total Assets

7720m

+917m

+13.5%

Equity

218.7m

+35.6m

+19.4%

Key Figures 1st Half 2011

Comparison with Previous Year
CHF'000

2010

Change

Change [%]

Q2-2011

Q1-2011

Change

Change [%]

Net Fee & Commission Income

Interest Income, net
Trading Results

33'263.3
7'840.8
26'365.4

32'524.4
5'346.7
11'686.9

738.9
2'494.1
14'678.5

2.3%
46.6%
125.6%

14'353.3
3'958.6
12'694.1

18'910.0
3'882.2
13'671.3

(4'556.7)
76.4
(977.2)

-24.1%
2.0%
-7.1%

Total Net Revenues

67'469.5

49'558.0

17'911.5

36.1%

31'006.0

36'463.5

(5'457.5)

-15.0%

Payroll & Related Expenses

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

(19'717.3)
(17'159.6)
(7'469.1)

(12'849.7)
(13'392.6)
(5'812.9)

(6'867.6)
(3'767.0)
(1'656.2)

53.4%
28.1%
28.5%

(9'688.5)
(8'271.2)
(3'547.3)

(10'028.9)
(8'888.3)
(3'921.7)

(21'507.0)

340.4
617.1
374.4

-3.4%
-6.9%
-9.5%

Total Expenses

(44'346.0)

(32'055.2)

(12'290.8)

38.3%

(22'838.9)

1'331.9

-5.8%

Operating Profit

23'123.5

17'502.8

5'620.7

32.1%

9'499.0

13'624.6

(4'125.6)

-30.3%

Income Taxes
1)
Others, net of tax

(5'309.3)
-

(3'825.9)
34.3

(1'483.4)
(34.3)

38.8%
-

(2'339.7)
-

(2'969.6)
-

Net Profit

17'814.2

13'711.2

4'103.0

29.9%

7'159.3

10'655.0

34.3%
26.4%
14'422'551
1.24

35.3%
27.7%
14'118'025
0.97

30.06.2011

30.06.2010

Operating Profit Margin

Net Profit Margin
Weighted average number of ordinary shares
Earning per share

304'526
0.26
Change

2.2%
27.2%

30.6%
23.1%
14'435'893
0.50

37.4%
29.2%
14'348'308
0.74

Change [%]

30.06.2011

31.03.2011

Trading Accounts [units]

Saving Accounts [units]
eForex Accounts [units]
ePrivate Banking Accounts [units]

152'987
16'258
9'899
554

141'790
12'122
2'357
-

11'197
4'136
7'542
554

7.9%
34.1%
320.0%
-

152'987
16'258
9'899
554

151'555
15'455
9'438
484

Total Number of Accounts

629.9
-

-21.2%
-

(3'495.7)

-32.8%

87'585
(0.25)

0.6%
-33.2%

Change

Change [%]

1'432
803
461
70

0.9%
5.2%
4.9%
14.5%

179'698

156'269

23'429

15.0%

179'698

176'932

2'766

Trading Assets [CHF m]

Saving Assets [CHF m]
eForex Assets [CHF m]
ePrivate Banking Assets [CHF m]

7'118.0
451.6
128.0
22.7

6'393.6
386.1
23.4
-

724.4
65.5
104.6
22.7

11.3%
17.0%
447.0%
-

7'118.0
451.6
128.0
22.7

7'765.5
448.4
146.5
22.5

(647.5)
3.2
(18.5)
0.2

-8.3%
0.7%
-12.6%
1.0%

Total Assets under Custody [CHF m]

7'720.3

6'803.1

917.2

13.5%

7'720.3

8'382.9

(662.6)

-7.9%

Total Net New Monies [CHF m]

eForex Volume [CHF bn]
Total Balance Sheet [CHF m]
Total Equity [CHF m]
Equity Surplus [CHF m]
Total Headcounts

387.3
203.9
2'516.1
218.7
125.4
352

662.0
63.2
2'141.3
183.1
115.2
260

(274.7)
140.7
374.8
35.6
10.2
92

-41.5%
222.6%
17.5%
19.4%
8.9%
35.4%

94.0
102.1
2'516.1
218.7
125.4
352

293.3
101.9
2'398.0
211.1
115.3
350

(199.3)
0.2
118.1
7.6
10.1
2

-68.0%
0.1%
4.9%
3.6%
8.8%
0.6%

1) Others consist of: Acquisition costs [fees impairment restructuring]

27

2011

Comparison with Previous Quarter

1.6%