Geneva-based Retail FX and CFDs broker, Dukascopy Bank SA, faced significant financial challenges in the first half of 2024, with revenues continuing to decline and the company reporting its first operating loss since 2018.
Dukascopy’s revenues dropped by 38% in H1 2024, falling to CHF 7.1 million (USD $8.4 million) from CHF 11.4 million in the second half of 2023. This marks the first time since the mid-2010s that Dukascopy’s semi-annual revenues have dipped below CHF 10 million.
The company’s core revenue from trading activities, which includes brokerage, saw a sharp decline of 47%, dropping from CHF 9.6 million in H1 2023 to just CHF 5.1 million in H1 2024. Despite this, Dukascopy saw some benefit from rising interest rates, with net interest income increasing to CHF 1.3 million from CHF 686K last year.
This decline in revenue resulted in a CHF 3.1 million (USD $3.7 million) operating loss for Dukascopy in H1 2024, marking its first semi-annual loss since 2018. However, changes in reserves for general banking risks and a booked tax benefit allowed the company to post a modest net profit of CHF 80,815 for the six months ending June 30, 2024.
In contrast, Dukascopy’s larger Swiss rival, Swissquote, posted record results for H1 2024, driven by a significant increase in crypto trading.
Despite the financial setbacks, customer deposits at Dukascopy increased in the first half of 2024, reaching CHF 152.2 million as of June 30, 2024, compared to CHF 134.6 million at the end of 2023.
Dukascopy Group, regulated in Switzerland, Latvia, and Japan, continues to operate within these regions, with its Latvian entity, Dukascopy Europe, holding a license to operate in the European Union. Founded in 2004, Dukascopy is led by its founders, Andre and Veronika Duka, who serve as co-CEOs.