Annual Results 2009

Zrich,
rich, 19th February 2010

Agenda

2009 Growth

Client Segments

Trading Segment

Saving Segment

eForex Segment

ePrivate Banking

ePrivate Banking Magazine

Balance Sheet

Key Figures 2009

2009 Growth

Record Inflow of new Funds

CHF million

1'600
1'400

1'375

Net New Monies

1'201

1'281 7.4%

1'200
961

1'000
800
600

512

400

7.4% higher inflow of new funds

200

1376 million new funds in 2009

0
2005

2006

2007

2008

2009

5.5 million new fund per day

Target 2010: Inflow of new funds
well above one billion

Ongoing Client Growth

160'000
140'000

142702

Swissquote Clients
119869 19%

120'000
100'000

90876

80'000
60'000

19.0% client growth

64067

17513 new trading clients in 2009

49057

40'000

5320 new saving clients in 2009

20'000
0
2005

2006

2007

2008

2009

142702 clients per 31st December

2009
Target 2010: 100 new clients per
day (i.e. ~28000 new clients in
2010)

Revenues and net Profit

35.0 million net profit (+6.7%)

11.7% decrease in overall revenues
to 98.6 million
Severe revenue decrease in
interest income (-69.4%)
Strong growth in trading results
(+69.7%)

Client Segments

Equity Ownership in Switzerland

1.7%
7.2%

Stock Options
11.1%
Shares Only

61.5%

18.5%

Funds &
Shares
Funds Only
No Securities

20% of the Swiss adults are

direct equity owners (1014
million)
40% are considered as self
directed
25% are ePrivate Banking
clients (Validators)
25% are pure private
banking clients
* Swiss Banking Institute 2008 Cocca / Volkart / Siebenthal
University of Zrich

Swissquote Client Segments

Others

Growth Potential

60%
69'000
50%
99'000
40%
30%
20%
269'000

132'000

8'300

10%
8'000

500

1'600

0%
Trading

ePrivate

Saving

eForex

Swissquote has four clear defined client segments: Trading, ePrivate, Saving
and eForex.

Strong growth potential in all segments

Growth potential of 69000 clients in the trading segment

3 to 5 additional year of growth for the trading and eForex segment. It will
however take up to 10 years to acquire all potential ePrivate and saving
clients.

Swissquote Client Segments

Growth Potential

Existing Clients

Revenue

300'000

10000
2000

250'000

6000

900

1000
200'000

150

150'000

100

100'000
10
50'000
0

1
Trading

10

ePrivate

Saving

eForex

The average revenue per trading client in normal market circumstances is

CHF 900 per year.

It is CHF 2'000 for an ePrivate, 150 for Saving and 6'000 for an eForex client

Swissquote Client Segments

2009 Revenue per Client

Normalized Revenue per Client

7000

6369
6000

6000
5000
4000
3000
2000
1600

2000
1000

708 900
189 150

0
Trading

11

ePrivate

Saving

eForex

With the exception of Saving and eForex client the average revenue
in 2009 per client was about 20% below the normal revenue figures

Trading Segment

12

Ongoing Growth: Target 2010: 20'000 new Trading Clients

Total Accounts [T,C,M]

Requests

140

130000

120

128000

100

126000

80

124000

60

122000

40

120000

20

118000

0
01.mars

132000

01.fvr.

160

01.janv.

134000

01.dc.

180

01.nov.

136000

01.oct.

200

01.sept.

138000

01.aot

220

01.juil.

140000

01.juin

240

01.mai

142000

01.avr.

13

Target

Assets under Custody per mid February 2010

Net Assets Inf low"

Assets Change

Total Assets

400

7'000

300

6'500

200
6'000
100
5'500

-200
-300

14

juin.10

mai.10

avr..10

mars.10

fvr..10

janv..10

dc..09

nov..09

nov..09

oct..09

sept..09

aot.09

juil..09

juin.09

mai.09

avr..09

mars.09

fvr..09

janv..09

-100

janv..09

0
5'000

4'500

4'000

Trading Volumes
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
Q4-09
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

Weak 4th quarter with transaction per client per year

(tpcpy) at the lower end of our bandwidth
More stable darts due to client growth
Weak start in 1st quarter 2010
15

Saving Segment

16

Saving Client Segment: Number of Clients by mid February 2010

Saving [S] Accounts

Target

Requests

11'000

110

10'000

100

9'000

90

8'000

80

7'000

70

6'000

60

5'000

50

4'000

40

3'000

30

2'000

20

1'000

10

17

01.mars

01.fvr.

01.janv.

01.dc.

01.nov.

01.oct.

01.sept.

01.aot

01.juil.

01.juin

01.mai

01.avr.

Saving Client Segment

8'048 clients per

31st December 2009
253.8 million assets

18

Interest Revenue [Trading and Saving clients]

Daily Interest Daily

Revenue
(Daily Interest Revenue)
InterestPoly.
Revenue
50'000
45'000
40'000
35'000
30'000
25'000
20'000
15'000
10'000
5'000

19

01.mars

01.fvr.

01.janv.

01.dc.

01.nov.

01.oct.

01.sept.

01.aot

01.juil.

01.juin

01.mai

01.avr.

eForex Segment

20

eForex Platform

21

eForex Client Growth per mid February 2010

eForex [F] Accounts

Requests
35

1'800

30

1'600

25

1'400

20

1'200

15

1'000

10

01.mars

01.fvr.

01.janv.

01.dc.

01.nov.

01.oct.

01.sept.

01.aot

01.juil.

600

01.juin

01.mai

800

01.avr.
22

Targets

2'000

eForex Segment

1600 active clients per

31st December 2009
Trading volume of USD
22.7 billion in 4th quarter
2009. USD 77.2 billion
for the entire year
First institutional clients
acquired

23

ePrivate Banking

24

Why ePrivate Banking?

About 250'000 clients in Switzerland would like to take ownership
of their wealth management without having the time to do it.
This usually affluent clients (more than CHF 200'00 of free
assets) would like to get some advice for the structuring of their
portfolio. They want however to remain in control and take the
ultimate decision.
Strong affinity with technology and the Internet.
Swissquote would like to gain a market share in this segment of
about 40%.
Swissquote is working since three years on an electronic
investment advisor.
This new instrument will be launched mid 2010.

25

Electronic Investment Advisor

Phase 1: Integration of
equity shares and
ETF's from all major
stock exchanges
Phase 2: Integration of
fixed income products

26

Electronic Investment Advisor

Step-by-step process
enables clients to
establish a personal risk
and investment profile
At the end of this
process the system will
propose an investment
strategy (portfolio) ready
to be executed by the
tool
Each proposed strategy
will be back tested

27

ePrivate Banking Magazine

28

Why a magazine for Swissquote?

1. To create an additional
communication tool with our clients
2. To create an emotional link to
Swissquote banking services
3. To increase the Swissquote brand
awareness and equity
4. To strongly link ePrivate Banking
to Swissquote (i.e. Online Wealth
Management)
5.

29

To promote investment ideas to

potential ePrivate banking clients

Fact & Figures

Initial print run of 60'000 copies: 55'000 for clients and

new clients 5'000 distributed to kiosks all over Switzerland
An electronic version PublishPapertm is available to all
Swissquote clients
QR Codes support on all articles with link to the
Swissquote full quote page
30

Facts & Figures (cont.)

31

The magazine appears every two month in German

and French. It contains approximately 100 pages.

Publisher: Swissquote Bank; Editing: LargeNetwork

(www.largenetwork.com); Advertising: Mediensatellit
(www.mediensatellit).

Content of the first issue:

Interview with Sika CEO Ernst Brtschi

Main topic: Cleantech with an interview of

Peter Pauli, CEO Mayer Burger

The best investment in 2010

Corporate portraits of Burberry, Kuoni, Nokia

Article about social networks (Facebook)

Balance Sheet

32

Balance Sheet at 31st December

CHF
CHF m
m

Structure
Structure in
in %
%

Actual
Actual

31.12.2009
31.12.2009

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

Chg
Chg

31.12.2009
31.12.2009

31.12.2008
31.12.2008

839.0
839.0
506.9
506.9
388.4
388.4
91.8
91.8
31.2
31.2
28.2
28.2

293.2
293.2
764.7
764.7
165.9
165.9
71.7
71.7
31.3
31.3
19.3
19.3

545.8
545.8
-257.8
-257.8
222.5
222.5
20.1
20.1
-0.1
-0.1
8.9
8.9

44.5%
44.5%
26.9%
26.9%
20.6%
20.6%
4.9%
4.9%
1.7%
1.7%
1.5%
1.5%

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

Total
Total

1'885.4
1'885.4

1'346.1
1'346.1

539.3
539.3

100.0%
100.0%

100.0%
100.0%

Liabilites
Liabilites &
& Equity
Equity
Due
to
customers
Due to customers ::
Trading
Trading accounts
accounts
Saving
Saving accounts
accounts
Other
Other liabilities
liabilities
Equity
Equity

1'421.0
1'421.0
253.8
253.8
36.4
36.4
174.2
174.2

1'086.4
1'086.4
80.0
80.0
40.6
40.6
139.1
139.1

334.6
334.6
173.8
173.8
-4.2
-4.2
35.1
35.1

75.4%
75.4%
13.5%
13.5%
1.9%
1.9%
9.2%
9.2%

80.7%
80.7%
5.9%
5.9%
3.0%
3.0%
10.3%
10.3%

Total
Total

1'885.4
1'885.4

1'346.1
1'346.1

539.3
539.3

100.0%
100.0%

100.0%
100.0%

123.4
123.4

89.5
89.5

33.9
33.9

6.5%
6.5%

6.6%
6.6%

26.1%
26.1%

22.4%
22.4%

3.7%
3.7%

50.8
50.8

49.6
49.6

Equity
Equity surplus
surplus
Tier
Tier 11 ratio
ratio
Risk
Risk Weighted
Weighted Assets
Assets

33

Actual
Actual

31.12.2008
31.12.2008

Balance Sheet at 31st December

34

Trend in Balance Sheet total and Equity

Growth of Balance Sheet

supported by strong equity
Surplus equity of over 120
million. Reflects situation in
the inter-banking market
Tier1 Ratio of 26.1%
Dividend of CHF 0.60 per
share

35

2009 Key Figures

36

2009 Key Figures

2008

2009

37

Revenues

98.6m

-13.0m

-11.7%

Operating profit

41.8m

-15.2m

-26.7%

Net profit

35.0m

+2.2m

+6.7%

Clients

142702

+22833

+19.0%

Assets u. Custody

6582m

+2043

+45.0%

Equity

174.2m

+35.1m

+25.2%

2009 Key Figures

Comparison with Previous Year
CHF'000

2008

Change

Change [%]

Q4-2009

Q3-2009

Change

Change [%]

Net Fee & Commission Income

Interest Income, net
Trading Results

70'716.4
9'577.3
18'339.4

69'530.3
31'337.3
10'809.4

1'186.1
(21'760.0)
7'530.0

1.7%
-69.4%
69.7%

16'888.0
2'102.3
4'905.9

20'021.1
1'861.1
4'506.8

(3'133.1)
241.2
399.1

-15.6%
13.0%
8.9%

Total Net Revenues

98'633.1

111'677.0

(13'043.9)

-11.7%

23'896.2

26'389.0

(2'492.8)

-9.4%

Payroll & Related Expenses

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

(24'572.0)
(23'813.4)
(8'417.0)

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

45.3
(3'313.4)
1'105.2

-0.2%
16.2%
-11.6%

(6'202.2)
(6'029.0)
(2'405.0)

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

23.0
(109.7)
(387.2)

-0.4%
1.9%
19.2%

Total Expenses

(56'802.4)

(54'639.5)

(2'162.9)

4.0%

(14'636.2)

(14'162.3)

(473.9)

3.3%

Operating Profit

41'830.7

57'037.5

(15'206.8)

-26.7%

9'260.0

12'226.7

(2'966.7)

-24.3%

Impairment and provision on Investment securities

Income Taxes

1'842.6
(8'680.3)

(12'227.3)
(12'003.4)

14'069.9
3'323.1

115.1%
-27.7%

701.0
(1'892.0)

1'141.6
(2'377.4)

(440.6)
485.4

-38.6%
-20.4%

Net Profit

34'993.0

32'806.8

2'186.2

6.7%

8'069.0

10'990.9

(2'921.9)

-26.6%

Operating Profit Margin

Net Profit Margin

38

2009

Comparison with Previous Quarter

42.4%
35.5%

51.1%
29.4%

31.12.2009

31.12.2008

Change

Total number of Trading Clients [units]

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

134'654
8'048
142'702

117'141
2'728
119'869

17'513
5'320
22'833

Assets under Custody [CHF m]

Saving Assets [CHF m]
Total Net New Monies [CHF m]
Total Headcounts

6'582.7
253.8
1'375.9
236

4'539.7
60.8
1'281.0
236

Total Balance Sheet [CHF m]

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

1'885.4
174.2
120.9

1'346.1
139.1
89.5

2'043.0
193.0
94.9
539.3
35.1
31.4

38.8%
33.8%

46.3%
41.6%

Change [%]

31.12.2009

30.09.2009

15.0%
195.0%
19.0%

134'654
8'048
142'702

130'645
6'339
136'984

4'009
1'709
5'718

3.1%
27.0%
4.2%

45.0%
317.4%
7.4%
0.0%

6'582.7
253.8
329.9
236

6'378.0
188.1
517.1
232

204.7
65.7
(187.2)
4

3.2%
34.9%
-36.2%
1.7%

40.1%
25.2%
35.1%

1'885.4
174.2
120.9

1'814.0
165.5
114.7

71.4
8.7
6.2

3.9%
5.3%
5.4%

Change

Change [%]