Results

for the first nine month of 2009

Zurich, 27 October 2009

Agenda

Forex Trading

Business Development

Development of Services

Balance Sheet

Key Figures

Forex Trading (eForex)

eForex

CHF m illion

16'000
14'000

Growth of eForex business

Forex (Trading)
Revenue

12'000

9 month revenues yoy doubled

10'000

Currently 42 currency pairs including

gold and silver at narrow spreads

8'000
6'000

Over 1200 active clients

4'000
2'000

Strong marketing push in October

0
9m 2005

9m 2006

9m 2007

9m 2008

9m 2009

Brand New eForex Platform

eForex

USD billion

1400

20
18

Forex Turnover

16

Clients

1200

14

1000

12

800

10
8

600

400

200

0
Q2-08

Q3-08

Q4-08

Q1-09

Q2-09

Q3-09

1271 active clients

Quarterly volume : USD 18.4 billion
Targeting institutional clients

Business Development

Client Growth
150'000
140'000

Saving Increase

130'000

Trading Increase

120'000

Saving
Trading

110'000
100'000
90'000
80'000
70'000
60'000
50'000

Saving accounts : strong growth (+ 1454 clients)

8

Q3-08

5150 net new clients in third quarter 2009

Q2-08

Q1-08

Q4-07

Q3-07

Q2-07

Q1-07

Q4-06

Q3-06

Q2-06

Q1-06

Q4-05

136984 clients

Client Growth
Total Accounts [T,C,M]

Target

Requests
240

140000
138000
136000
134000
132000
130000
128000
126000
124000
122000
120000
118000
116000
114000
112000
110000
108000

220
200
180
160
140
120
100
80
60
40

01.dc

01.nov

01.oct

01.sept

01.aot

01.juil

01.juin

01.mai

01.avr

01.mars

01.fvr

01.janv

20
0

Opening requests lower in July

Recovering later in quarter - successful marketing campaign
25000 net new clients target confirmed for 2009
9

Strong Growth in Client Assets

CHF m illion
7'000
6'500

Net Assets Inflow

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

Q3-09

Q2-09

Q1-09

10

Q4-08

6.3 billion. Asset under custody

Q3-08

517.7 Mio. net new monies in Q3-2009

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

Recovering from the financial crisis

Trading Volumes in third 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
Q3-09
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

Trading activity recovery confirmed in Q3-2009

Trades per Client per Year (tpcpy) = 18
Daily Average Revenue Transactions (darts) = 9081
11

Commission, Interest and Trading Revenues in third quarter

CHF '000
35'000

Interest

30'000

Trading

25'000

Commission
20'000
15'000
10'000
5'000
0
Q3-09

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

Aggregate commission and trading revenues at record high

Interest revenues collapsed

12

Daily Net Interest Revenues Since 1st October 2008

140'000

Daily Interest Revenue

120'000
100'000
80'000
60'000
40'000
20'000

01.dc

01.nov

01.oct

01.sept

01.aot

01.juil

01.juin

01.mai

01.avr

01.mars

01.fvr

01.janv

01.dc

01.nov

01.oct

Interest revenues cut by 4/5 over the last 12 months while total
balance sheet increased 460 Mio.
Interest revenues have bottomed in Q3-2009

13

Costs and Revenues per Client and Quarter

Costs

Marketing

Revenues

450
400
350
300
250
200
150
100
50
0
Q3-09

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

Revenues per client recovering (CHF 205)

Control over costs and productivity improvement reflects on 12.2
Mio operating profit in Q3-2009
Further investments in marketing and new services
14

Trend in Revenues and Operating Profit

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 P ro fit
Quarterly Revenues

15

Q3-09

12,2 Mio. operating profit and 10,9 Mio. net profit

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

5.2 % qoq revenues growth at 26.4 Mio

Net Profit
CHF '000
60%

18'000

Operating Profit

16'000

Net Profit

50%

OP M argin

14'000

40%

12'000
10'000

30%

8'000
20%

6'000
4'000

10%

2'000
0%
Q3-09

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

Resilient net profit of 10,9 Mio. in Q3-2009

46.3 % operating profit margin (41,6% net profit margin)

16

Asset Margin : 1.8% in third quarter 2009

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

17

Q3-09

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

0
Q2-05

Key Figures (yoy)

9M-2008

9M-2009

18

Revenues

74.7m

-7.4m

-9.1%

Operating profit

32.5m

-9.8m

-23.1%

Net profit

26.9m

+2.8m

+11.9%

Clients

136984

+26431

+23.9%

Assets u. Custody

6378m

+1179m

+22.7%

Equity

165.5m

+34.8m

+26.6%

Key Figures (qoq)

Q2-2009

Q3-2009

19

Revenues

26.4m

+1.4m

+5.5%

Operating profit

12.2m

+1.5 m

+13.8%

Net profit

10.9m

+2.5m

+29.8%

Clients

136984

+5150

+3.9%

Assets u. Custody

6378m

+893.0

+16.3%

Equity

165.5m

+13.1m

+8.6%

Development of New Services

20

Dynamic Saving Account

Saving [S] Accounts

Requests

7000

90

6000

75

5000

60

4000
45
3000
30

2000

15

1000

CHF'
m

External

Internal

01.sept

01.aot

01.juil

01.juin

01.mai

01.avr

01.mars

01.fvr

01.janv

01.dc

01.nov

0
01.oct

Saving Assets

200.0
180.0
160.0
140.0
120.0
100.0
80.0
60.0
40.0
20.0

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

0.0

188,1 Mio. AUC

6339 clients at 30 September 2009
(+ 1454 in Q3-2009)
approx. 10% with saving plans

iPhone Application

Swissquote iPhone
application ranks No1 in
Switzerland (leads ahead of
Bloomberg and CNBC)
Release 3 allows direct
access to the account and
hence to all trading
functionalities.
Mobile Internet trading will
grow in importance in the
future. All Swissquote
services will be made mobile

22

Swissquote ePrivate Banking Magazine

23

Swissquote will launch an investment

magazine

Content will be developed in cooperation

with LargeNetwork

Containing approximately 90 pages, the

magazine will appear every two months,
the first time on the 19th of February. The
initial print run will be 60000 copies

The 'Swissquote ePrivate Banking

Magazine' will deal mainly with
investment questions of a broader and
longer-term relevance, providing readers
with tangible benefits but also conveying
suggestions and ideas for their personal
investment strategies

Financially the Magazine will support its

own costs. Mediensatellit GmbH will act
as media agent

Swissquote ePrivate Banking Magazine

24

Balance Sheet

25

Balance Sheet at 30 September 2009

CHF m
30.09.2009
31.12.2008

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

Structure in %
30.09.2009
31.12.2008

761.6
591.3
299.9
88.8
31.5
40.9

293.2
764.7
165.9
71.7
31.3
19.3

468.4
-173.4
134.0
17.1
0.2
21.6

42.0%
32.6%
16.5%
4.9%
1.7%
2.3%

21.8%
56.8%
12.3%
5.3%
2.3%
1.4%

Total

1'814.0

1'346.1

467.9

100.0%

100.0%

Liabilites & Equity

Due to customers :
Trading accounts
Saving accounts
Other liabilities
Equity

1'420.4
187.1
41.0
165.5

1'086.4
80.0
40.6
139.1

334.0
107.1
0.4
26.4

78.3%
10.3%
2.3%
9.1%

80.7%
5.9%
3.0%
10.3%

Total

1'814.0

1'346.1

467.9

100.0%

100.0%

114.7

89.5

25.2

6.3%

6.6%

26.1%

22.4%

Equity surplus
Tier 1 ratio

26

Change

3.7%

Balance Sheet at 30 September 2009

Structure of Assets
299.9; 17%
591.3; 33%
88.8; 5%
31.5; 2%

761.6; 43%

Cash & balance with Central Bank

Investment securities
Immobilisations

Loans & advances to banks

Loans & advances to customers

Structure of Liabilities & Equity

175; 10%
41; 2%
165.5; 9%

1432.5; 79%

27

Due to customers (Trading)

Due to customers (Saving)

Other liabilities

Equity

Trend in Balance Sheet total and Equity

CHF m illion

7'000
Assets under Custodz

Total Balance Sheet

6'000
5'000
4'000
3'000
2'000

Growth of Balance Sheet

supported by strong equity

1'000
0
Q2-08

Q3-08

Q4-08

Q1-09

Q2-09

Q3-09

CHF m illion

180
160

Total Equity

Equity Surplus

Tier1 Ratio of 26%

140
120
100
80
60
40
20
0
Q2-08

28

Surplus equity of over 100

Mio. reflects situation in the
inter-banking market

Q3-08

Q4-08

Q1-09

Q2-09

Q3-09

Key Figures

29

Key Figures for the first nine month of 2009

Comparison with Previous Year
CHF'000

9M-2009

9M-2008

Net Fee & Commission Income

Interest Income, net
Trading Results

53'828.4
7'475.0
13'433.5

Total Net Revenues

Comparison with Previous Quarter

Q3-2009

Q2-2009

Change

Change [%]

5.7%
-69.3%
93.5%

20'021.1
1'861.1
4'506.8

18'322.8
2'280.6
4'405.9

1'698.3
(419.5)
100.9

9.3%
-18.4%
2.3%

(7'463.0)

-9.1%

26'389.0

25'009.3

1'379.7

5.5%

(18'551.6)
(14'555.4)
(6'718.1)

181.8
(3'229.1)
706.1

-1.0%
22.2%
-10.5%

(6'225.2)
(5'919.3)
(2'017.8)

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

(144.6)
257.5
(5.5)

2.4%
-4.2%
0.3%

(42'166.3)

(39'825.1)

(2'341.2)

5.9%

(14'162.3)

(14'269.7)

107.4

-0.8%

Operating Profit

32'570.6

42'374.8

(9'804.2)

-23.1%

12'226.7

10'739.6

1'487.1

13.8%

Impairment and provision on Investment securities

Income Taxes

1'141.6
(6'788.2)

(9'346.6)
(8'967.8)

10'488.2
2'179.6

112.2%
-24.3%

1'141.6
(2'377.4)

(2'271.6)

1'141.6
(105.8)

4.7%

Net Profit

26'924.0

24'060.4

2'863.6

11.9%

10'990.9

8'468.0

2'522.9

29.8%

Change

Change [%]

Change

Change [%]

50'925.5
24'333.2
6'941.2

2'902.9
(16'858.2)
6'492.3

74'736.9

82'199.9

Payroll & Related Expenses

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

(18'369.8)
(17'784.5)
(6'012.0)

Total Expenses

Operating Profit Margin

Net Profit Margin

43.6%
36.0%

51.6%
29.3%

30.09.2009

30.09.2008

Change

Total number of Trading Clients [units]

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

130'645
6'339
136'984

108'777
1'776
110'553

21'868
4'563
26'431

Assets under Custody [CHF m]

Total Net New Monies [CHF m]
Total Headcounts

6'378.0
1'046.0
232

5'198.6
965.8
232

Total Balance Sheet [CHF m]

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

1'814.0
165.5
114.7

1'375.1
130.7
75.6

30

1'179.4
80.2
438.9
34.8
39.1

46.3%
41.6%

42.9%
33.9%

Change [%]

30.09.2009

30.06.2009

20.1%
256.9%
23.9%

130'645
6'339
136'984

126'949
4'885
131'834

22.7%
8.3%
0.0%

6'378.0
517.7
232

5'485.0
240.3
227

31.9%
26.6%
51.7%

1'814.0
165.5
114.7

1'647.3
152.4
100.6

3'696
1'454
5'150
893.0
277.4
5
166.7
13.1
14.1

2.9%
29.8%
3.9%
16.3%
115.4%
2.2%
10.1%
8.6%
14.0%