Dukascopy Grapples with 80% Profit Decline in H1 after Upswing in 2022

Dukascopy Grapples with 80% Profit Decline in H1 after Upswing in 2022

Time Stamp: August 18, 2023 2:46 PM
Dukascopy Grapples with 80% Profit Decline in H1 after Upswing in 2022 PlatoBlockchain Data Intelligence. Vertical Search. Ai.

Switzerland-based Dukascopy
released an interim consolidated statement of income today (Friday), reporting
that its profit nose-dived by 80% to CHF 889,000 during the first six months of
this year. The figure fell from CHF 3.9 million posted during the same period
in 2022.

As a
globally-oriented Swiss company, Dukascopy operates its retail foreign
exchange and
contracts for difference (CFD) brokerage and retail banking business in several
jurisdictions. The firm runs subsidiaries
in Japan, Switzerland and Latvia, and even has a representative office in Hong
Kong.

However, according to the latest financial
report, the
income of the Swiss CFD provider from its trading activities slumped
significantly during the half-year (H1) 2023 that
ended in June. The income came in at CHF 9.6 million, going down by 33% from CHF 14.4 million.

On the contrary, Dukascopy’s revenue from its interest operations or interest-bearing
assets, such as loans, bonds, and money market funds, soared by over 800% from CHF 76,000
to CHF 686 million. By comparison, the brokerage’s income from its commission business
and services increased only marginally by1%to CHF
562.4 million, which is up from CHF 554.6 million.

Despite this poorer
performance, Dukascopy managed to bring down its operating expenses. The number descended by 74% from CHF 4.8 million in half-year 2022 to CHF 1.2 million during the same period this year.

A Stark
Drop in Profit

Meanwhile,
the sharp decline in
Dukascopy’s profit follow a remarkable performance in 2022 during which the
Swiss broker’s profit soared by over 200% to
CHF 6.4 million. The amount was the second-highest profit ever in the group’s history, Finance Magnatesreported.

Additionally,
the company reported a 21% increase in its operating income for 2022. The
figure came in at CHF 27.4 million, which is up from CHF 22.7 million posted in
the previous year. Dukascopy said it achieved the milestone amidst a
challenging market landscape marked by the Russia-Ukraine conflict, surging
inflation, and rising interest rates.

Switzerland-based Dukascopy
released an interim consolidated statement of income today (Friday), reporting
that its profit nose-dived by 80% to CHF 889,000 during the first six months of
this year. The figure fell from CHF 3.9 million posted during the same period
in 2022.

As a
globally-oriented Swiss company, Dukascopy operates its retail foreign
exchange and
contracts for difference (CFD) brokerage and retail banking business in several
jurisdictions. The firm runs subsidiaries
in Japan, Switzerland and Latvia, and even has a representative office in Hong
Kong.

However, according to the latest financial
report, the
income of the Swiss CFD provider from its trading activities slumped
significantly during the half-year (H1) 2023 that
ended in June. The income came in at CHF 9.6 million, going down by 33% from CHF 14.4 million.

On the contrary, Dukascopy’s revenue from its interest operations or interest-bearing
assets, such as loans, bonds, and money market funds, soared by over 800% from CHF 76,000
to CHF 686 million. By comparison, the brokerage’s income from its commission business
and services increased only marginally by1%to CHF
562.4 million, which is up from CHF 554.6 million.

Despite this poorer
performance, Dukascopy managed to bring down its operating expenses. The number descended by 74% from CHF 4.8 million in half-year 2022 to CHF 1.2 million during the same period this year.

A Stark
Drop in Profit

Meanwhile,
the sharp decline in
Dukascopy’s profit follow a remarkable performance in 2022 during which the
Swiss broker’s profit soared by over 200% to
CHF 6.4 million. The amount was the second-highest profit ever in the group’s history, Finance Magnatesreported.

Additionally,
the company reported a 21% increase in its operating income for 2022. The
figure came in at CHF 27.4 million, which is up from CHF 22.7 million posted in
the previous year. Dukascopy said it achieved the milestone amidst a
challenging market landscape marked by the Russia-Ukraine conflict, surging
inflation, and rising interest rates.

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