Swissquote Bank Sees Noticeable Reduction in Net Profits Due to Exit of Crypto Trading Business
An online bank based in Switzerland called Swissquote Bank has recently reported that its net profits went down 14.3% this year. The main reason for the decline, according to the executives, is that the year saw a significant drop in crypto trading. Other factors were also cited, but this one was one of the most relevant ones for the losses.
When comparing June 2019 to June 2018, the company affirmed that it was able to have a net profit of $22.55 million in the current years while it profited $26.34 million in the previous one.
It was also reported that crypto trading went down 17.9% during this timeframe, which affected commission income and net fees as well.
When looking at the data, it is important to remember that the crypto market was having a bear market last year. Even with volumes decreasing significantly, the company was still able to perform better in 2018, which can be seen as a very worrisome statistic. This year, the crypto market is doing considerably fine when compared to 2018, although not as well as it did in 2017.
Swissquote started its crypto services back in 2017. It offers its clients the chance to deal with five different tokens: Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTX) and Ripple’s XRP.
The company has also recently announced a custody service for cryptocurrencies this year, which will be a partnership with another Swiss company called Crypto Storage AG.