Dukascopy Endures a Harsh H1 2024: Income and Profit Nosedive

Dukascopy, a Geneva-headquartered retail forex and contracts for differences (CFDs) broker, has released its financials for the first six months of 2024, revealing a significant drop in its consolidated income from trading activities. It fell to CHF 5.14 million, a 46.5 percent decline from CHF 9.61 million generated in the corresponding period in 2023. The broker's net profit also plummeted by 81.7 percent to CHF 80,815.

A Significant Drop in Income and Profit

The standalone trading income also dropped to CHF 4.88 million, compared to CHF 9.23 million in the corresponding period in 2023, marking a decline of 47.1 percent. These figures follow a 33 percent annual decline in trading income for the Swiss online broker in 2023.

However, Dukascopy benefited from higher interest rates, generating CHF 1.34 million from interest income, almost double the amount year-over-year. It also earned a net of CHF 629,781 from other commission businesses and services.

The decline in income significantly impacted the broker's half-yearly consolidated net profits, which fell to CHF 80,815 from CHF 438,851 in the corresponding period of 2023. Standalone profits for the period came in at CHF 19,784.

A Sharp Correction from the Peak

As Finance Magnates reported earlier, Dukascopy's net profit in 2023 was CHF 1.3 million, significantly lower than the previous year's record of CHF 6.4 million. At that time, the company noted that this figure was achieved despite “unfavourable changes in the market environment.”

Despite the income drop, the brokerage only managed to reduce its consolidated costs marginally, incurring a total operating expense of CHF 9.96 million, slightly lower than H1 2023’s CHF 10.01 million.

Interestingly, Dukascopy strengthened its balance sheet during this period. The value of its total assets increased to CHF 218.4 million at the end of June 2024, up from CHF 202.39 million at the end of June 2023.

Meanwhile, the Swiss broker continues to enhance its products and services. Last June, it added access to Italian stocks and indices on its trading platform and integrated the MetaTrader 5. The broker is also attempting to capitalize on the bankruptcy of its local competitor, FlowBank, by attracting its stressed clients.