Swissquote’s financial statements are those of a bank. Hence, we would qualify only Tier 1 and Tier 2 capital as debt (deposits, for instance, are considered as operational debt). The total amount of Tier 2 in 2020 was negligible compared to the total common equity tier 1. Hence, Swissquote’s leverage is zero or close to zero.
Its CET1 ratio stands at 23% (Q4 20), well above the 11.2% capital requirements and still above management’s target of 15%. Hence, we consider Swissquote has a positive net cash position (excess capital above management’s target) of CHF140m at the end of 2020.
