Results for the1st quarter of 2009

Conference Call, 29th April 2009

Agenda

Business Development

Trends for the 2nd Quarter

New Services

Interim Statement of Financial Positions

Key Figures

Business Development

Trading Volumes in 1st Quarter 2009

35.0

12'000
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
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
Q2-03
Q1-03

Persisting weak trading volumes

Tpcpy = 15.5
Darts = 7385
4

Commission, Interest & Trading Income

CHF '000
35'000
Trading

30'000

Interest

Commission

25'000
20'000
15'000
10'000
5'000
0
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

Moderate drop in commission revenues due to client growth

Sharp decrease in interest revenues
Massive increase in revenues from trading operations (eForex)
5

Client Growth

Strong client growth

5617 client increase in 1st quarter 2009
Ongoing success story of Swissquote despite financial crisis
6

Assets under Custody are recovering in 1st quarter 2009

Inflow of new funds of CHF 290.6 millions in 1st quarter

Market recovery and inflow of new assets were able to stop
assets erosion
CHF 4,6 billion assets per 31st March 2009
7

Costs and Revenues per Client and Quarter

Costs

Marketing

Revenues

450
400
350
300
250
200
150
100
50
0
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

Q2-03

Q1-03

Financial crisis is reducing client revenues on the short term

Cost control and improved efficiency since 2003 is securing a
solid profit in every market situation
Ongoing investments in marketing and new services
8

Quarterly Revenue Chart

35'000
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

Operating profit of 9.6 million

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

Revenue drop of 20.8% compared to 4th quarter 2008

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

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

Stable revenue margins over 2%

Immediate revenue increase in case of market recovery

10

Quarterly Profit Chart

CHF '000

18'000

60%

Operating Profit

16'000

Net Profit

14'000

OP Margin

50%
40%

12'000
10'000

30%

8'000
20%

6'000
4'000

10%

2'000
0%

Solid Earnings of 7.5 million in 1st quarter

Profit margin of 41.2% (32% net profit margin)

11

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

Key Figures (compared with previous year)

Q1-2008

Q1-2009

12

Revenues

23.3m

-4.3m

-15.4%

Operating profit

9.6m

-5.0m

-34.4%

Net profit

7.5m

-4.0m

-35.1%

Clients

125486

+27792

+28.4%

Assets u. custody

4643m

-710.2

-13.3%

Equity

145.2m

+9.9m

+7.3%

Key Figures (compared with previous quarter)

Q4-2008

Q1-2009

13

Revenues

23.3m

-6.1m

-20.8%

Operating profit

9.6m

-5.0m

-34.5%

Net profit

7.5m

-1.3m

-14.6%

Clients

125486

+5617

+4.7%

Assets u. custody

4643m

+104.1

+2.3%

Equity

145.2m

+6.1m

+4.4%

Trends for the 2nd Quarter

14

Client Growth on Target

Total Accounts [T,C,M]

Requests

140

116000

120

114000

100

112000

80

110000

60

108000

40

106000

20

104000

0
01.juin

118000

01.mai

160

01.avr.

120000

01.mars

180

01.fvr.

122000

01.janv.

200

01.dc.

124000

01.nov.

220

01.oct.

126000

01.sept.

240

01.aot

128000

01.juil.

15

Target

16
01.juin

01.mai

01.avr.

01.mars

01.fvr.

01.janv.

01.dc.

01.nov.

01.oct.

01.sept.

01.aot

01.juil.

Better Trading Activity in April

Trades per client per year

50

45

40

35

30

25

20

15

10

Market Recovery pushes Assets over 5 billion

Net Assets Inflow"

Assets Change

Total Assets

600

6'250

400

6'000
5'750

200

5'500

-400

17

juin.09

mai.09

avr..09

mars.09

fvr..09

janv..09

dc..08

nov..08

oct..08

sept..08

aot.08

juil..08

juin.08

mai.08

avr..08

-200

mars.08

0
5'250
5'000
4'750

-600

4'500

-800

4'250

New Services

18

Saving Account

Since 1st April best offering on the

Swiss market with 1.8% interest rate
Already more than 120 million
saving assets
3335 clients per 31st March 2009
Strong increase of saving assets

19

Swissquote Quant Swiss Equities Fund

Successful start with our

in-house Quant fund
Over performing the SPI
with 4% on average since
1st January 2009
More developments in
the ePrivate banking
sector to come

20

New features on the trading Platform

Redesigned real time

account with many
additional features
Cap at CHF 100 for the
custody fees
Swissquote ranked most
attractive online bank in
the last KGELD price
survey

21

Interim Statement of Financial Positions

22

Balance Sheet per 31st March 2009

[CHF m]
ASSETS
Deposit at central bank
Loans and advances to banks
Loans to customers
Investment securities
Property & systems
Other assets

641.1
491.6
70.1
235.1
31.6
31.9

293.2
347.9
765.7 - 274.1
71.7
(1.6)
165.9
69.2
31.3
0.3
18.3
13.6

54.3%
-55.8%
-2.3%
29.4%
0.9%
42.6%

Total assets

1'501.4

1'346.1

155.3

10.3%

LIABILITIES AND EQUITY

Liabilities
Due to customers
Other liabilities

1'312.9
43.3

1'166.3
40.7

146.6
2.6

11.2%

1'356.2

1'207.0

149.2

11.0%

Total liabilities

6.0%

Equity
Ordinary shares
Reserves & retained earnings
Treasury shares

2.9
167.8
(25.5)

2.9
160.8
(24.6)

7.0
(0.9)

0.0%

Total equity

145.2

139.1

6.1

4.2%

1'501.4

1'346.1

155.3

10.3%

Total liabilities and equity

23

31 December
31 March 2009
31.12.2008 Change

4.2%
3.5%

Balance Sheet per 31st March 2009

24

Structure of Assets and Liabilities

25

Key Figures

26

Key Figures 1st quarter 2009

Comparison with Previous Year
CHF'000

Q1-2009

Q1-2008

Change

Change [%]

Net Fee & Commission Income

Interest Income, net
Trading Results

15'484.6
3'333.4
4'520.7

18'280.7
7'426.1
1'890.1

(2'796.1)
(4'092.7)
2'630.6

Total Net Revenues

23'338.7

27'596.9

Payroll & Related Expenses

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

(6'064.0)
(5'688.3)
(1'981.9)

Total Expenses
Operating Profit
Write down on investment securities, net of tax
Income Taxes
Net Profit
Operating Profit Margin
Net Profit Margin

27

Comparison with Previous Quarter

Q1-2009

Q4-2008

Change

Change [%]

-15.3%
-55.1%
139.2%

15'484.6
3'333.4
4'520.7

18'604.7
7'004.2
3'868.3

(3'120.1)
(3'670.8)
652.4

-16.8%
-52.4%
16.9%

(4'258.2)

-15.4%

23'338.7

29'477.2

(6'138.5)

-20.8%

(6'139.6)
(4'488.1)
(2'319.1)

75.6
(1'200.2)
337.2

-1.2%
26.7%
-14.5%

(6'064.0)
(5'688.3)
(1'981.9)

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

1.7
256.3
822.2

0.0%
-4.3%
-29.3%

(13'734.2)

(12'946.8)

(787.4)

6.1%

(13'734.2)

(14'814.4)

1'080.2

-7.3%

9'604.5
(2'139.2)

14'650.1
(3'139.3)

(5'045.6)
1'000.1

-34.4%
-31.9%

9'604.5
(2'139.2)

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

(5'058.3)
2'880.8
896.5

-34.5%
-100.0%
-29.5%

7'465.3

11'510.8

(4'045.5)

-35.1%

7'465.3

8'746.3

(1'281.0)

-14.6%

41.2%
32.0%

53.1%
41.7%

41.2%
32.0%

49.7%
29.7%

31.03.2009

31.03.2008

Change

Change [%]

31.03.2009

31.12.2008

Total number of Trading Clients [units]

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

122'151
3'335
125'486

97'694
97'694

24'457
3'335
27'792

25.0%
28.4%

122'151
3'335
125'486

117'141
2'728
119'869

5'010
607
5'617

4.3%
22.3%
4.7%

Assets under Custody [CHF m]

Total Net New Monies [CHF m]
Total Headcounts

4'643.8
290.6
228

5'354.0
414.4
233

(710.2)
(123.8)
(5.0)

-13.3%
-29.9%
-2.1%

4'643.8
290.6
228

4'539.7
315.2
236

104.1
(24.6)
(8.0)

2.3%
-7.8%
-3.4%

Total Balance Sheet [CHF m]

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

1'501.4
145.2
95.2

1'381.2
135.3
83.8

120.2
9.9
11.4

8.7%
7.3%
13.6%

1'501.4
145.2
94.9

1'346.1
139.1
89.5

155.3
6.1
5.4

11.5%
4.4%
6.0%

Change

Change [%]