Switzerland-based Dukascopy released an interim consolidated statement of income today (Friday), reporting that its profit nose-dived 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.

Dukascopy's Trading Revenue Shrinks in H1

As a globally-oriented Swiss company, Dukascopy operates its retail foreign exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term 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 CFDs provider in its trading activities slumped significantly during the half-year (H1) of 2023 that ended in June. The income was reported at CHF 9.6 million, decreasing 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 over 800% from CHF 76,000 to CHF 686 million. In comparison, the brokerage’s income from its commission business and services increased only marginally by 1% to CHF 562.4 million, which is up from CHF 554.6 million.

Despite this poor performance, Dukascopy managed to bring down its operating expenses. The number descended 74% from CHF 4.8 million in H1 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 followed a remarkable performance in 2022 during which the Swiss broker’s profit soared over 200% to CHF 6.4 million. The amount was the second-highest profit ever recorded in the group's history, Finance Magnatesreported.

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