Shares of Swiss online bank Swissquote Group Holdings SA fell 5% on Friday after the company reported quarterly earnings that missed analyst expectations.
The lender, which provides digital banking and trading services, posted a net profit of 22.3 million Swiss francs ($24.5 million) for the quarter, below the 25.1 million Swiss francs forecast by analysts polled by Reuters. Revenue also came in at 127.6 million Swiss francs, short of the 130.2 million Swiss francs expected.
Swissquote attributed the underperformance to lower trading volumes and weaker client activity in its core markets of Europe and the Middle East. The company noted that while customer deposits remained stable, trading revenue declined due to reduced market volatility and lower client engagement.
The stock, which had been trading near multi-year highs in recent months, has now erased gains made in 2024. Investors had priced in expectations of a strong performance driven by higher interest rates and increased trading activity, but the latest results suggest a slowdown in momentum.
Analysts at UBS maintained a neutral rating on the stock following the earnings release, citing concerns over near-term revenue growth. The bank also highlighted that Swissquote's reliance on trading commissions makes it particularly sensitive to market conditions.
Swissquote's shares closed at 480 Swiss francs on Thursday, down from an intraday high of 505 Swiss francs earlier in the week.
