Dukascopy’s Trading Revenue Takes an 80% Hit in H1

The Swiss-based Dukascopy today made its interim consolidated income statement public. The report showed a sharp 80% plunge in profits, dropping to CHF 889,000 in H1 of this year from CHF 3.9 million during the same period in 2022.

Dukascopy, a multinational Swiss entity, manages its retail forex and Contracts for Difference (CFD) brokerage and retail banking operations across several jurisdictions. The company maintains subsidiaries in Japan, Switzerland, and Latvia, along with a representative office in Hong Kong.

The latest financial report, however, noted a significant drop in trading income for the Swiss CFDs supplier in H1 2023, ending in June. The reported income was CHF 9.6 million, a 33% decline from CHF 14.4 million.

In contrast, Dukascopy saw its revenue from interest-bearing assets like loans, bonds, and money market funds skyrocket over 800% from CHF 76,000 to CHF 686 million. The firm’s commission business and service income saw a minimal increase of 1% to CHF 562.4 million, up from CHF 554.6 million.

Despite the financial setback, Dukascopy succeeded in reducing its operating expenses. The figure fell 74% from CHF 4.8 million in H1 2022 to CHF 1.2 million for the same period this year.

A Sudden Plunge in Profit

This steep drop in Dukascopy’s profits comes from a remarkable 2022 performance. The Swiss broker’s profit surged over 200% to CHF 6.4 million, marking one of the highest profits in the company’s history.

Moreover, 2022 saw a 21% increase in operating income for the company, declared at CHF 27.4 million, up from CHF 22.7 million in the previous year. Dukascopy attributed this achievement to navigating a challenging market influenced by the Russia-Ukraine conflict, escalating inflation, and rising interest rates.