Avaloq has reported some positive earnings for 2017 driven by a demand for its banking and wealth management solutions.
In its full year revenue, the vendor reported a record of over CHF 550 million ($585.4 million). Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to over CHF 100 million ($106.4 million). There was more good news when cash on hand grew to over CHF 180 million ($191.6 million).
By way of comparison, in its full year 2016 results, the Swiss firm generated full year revenues of CHF 533 million ($530 million), an increase of 10% on a reported basis from CHF 485 million ($482 million) in 2015. While EBITDA went up by 41% to CHF 82 million ($81.5 million) from CHF 58 million ($57.6 million) in 2015.
According to Avaloq, 2017 saw 12 customers going live including RBC Asia, Edmond de Rothschild and Notenstein La Roche Privatbank; while new customers included Bank of Asia, Kasikornbank and Deutsche Apotheker- und Ärztebank.
Jürg Hunziker, Avaloq’s new group CEO, says: “2017 was a record-breaking year for Avaloq and demonstrated the strength of our business model and our customers’ focus on automation and digital excellence. The triple requirement for banks to undertake digitisation projects while remaining compliant and maintaining a competitive edge continues to drive demand for our services.”
In addition, Avaloq says it saw a “significant number of additional special projects” for customers which helped drive record revenues. In terms of figures, 22 of the 255 Raiffeisen banks in Switzerland went live at the start of the new year.
The firm is keen to keep its co-innovation portal in the spotlight and states that more than 1,300 third-party developers have signed up to use it, while over 90 fintech solutions are now part of its “unique” Avaloq Software Exchange platform. The latter was launched in September 2015, and acts as an online marketplace.
As reported in June 2017, private equity firm Warburg Pincus acquired a 35% shareholding in Avaloq from existing shareholders – with the deal a first step towards a potential public listing.
By the way, as reported in November 2017, the aforementioned Raiffeisen, the third largest banking group in Switzerland, sold its 10% stake in Avaloq to Warburg Pincus.
At the end of last year, Francisco Fernandez, founder of Avaloq, relinquished his role of CEO and became chairman of the company. Hunziker, Avaloq’s chief marketing officer, became the new chief executive.
According to the announcement made by the vendor, Fernandez will focus on “innovation, strategy and acquisitions” – to prepare the company for a potential IPO in the coming years.