Exclusive: Dukascopy sees Revenue drop 7% in 2H-2021, Profits fall 40%
FNG Exclusive… While the very active retail trading environment has meant record activity, revenues and profits at some online brokers, not all have been able to “make hay while the sun is shining”.
FNG has learned from filings made in Switzerland that Geneva based Retail FX broker Dukascopy Bank SA has seen a (further) erosion in revenues and profits in the second half of 2021. That followed what was also a very disappointing first half of the year at Dukascopy, where revenues were off by 23% from 2020 levels.
Overall, Dukascopy revenues totaled CHF 10.6 million (USD $10.9 million) in the last six months of 2021, down 7% from the first half’s CHF 11.4 million. For the full year 2021, Dukascopy revenues were CHF 22.0 million, down 46% from CHF 40.5 million in 2020.
Profits at Dukascopy were CHF 2.3 million in 2021, down 82% from CHF 12.8 million in 2020.
Indeed, the second half of 2021 was Dukascopy’s slowest half-year period dating back at least 10 years. In step, the Dukascopy Group reduced employment from 157 employees in 2020 to 124 in 2021.
Despite the fall in activity Dukascopy did see client deposits continue to rise, hitting CHF 126 million as at December 31, 2021, up from CHF 105 million at year end 2020.
Regarding the start to 2022, Dukascopy indicated that the Russian-Ukrainian conflict which started in February 2022 may have an impact on the Bank’s activities. It is however too early to quantify their effects on the Bank’s financials. The result for the first three months of 2022 is a profit of CHF 2.0 million.
Dukascopy is the second largest Retail FX firm based in Switzerland after Swissquote, which continued to post record results in 2021, although with the second half of the year being slower than 1H-2021.
The Bank and securities houses of Dukascopy Group are regulated in Switzerland, Latvia and Japan. The Latvian entity, Dukascopy Europe has a license to operate in the European Union. The Group offers multi-products (FX, bullion, CFD, binary options) online and mobile trading platforms together with an increasing range of other financial services including current accounts, guarantees, classic banking payments, innovative instant payments via smartphones, payment cards, and its own crypto currency, to individuals and institutions. The SWFX trading platforms operated by Dukascopy Bank SA are considered bilaterally organised trading facilities.
Dukascopy is controlled and run by husband-and-wife team Veronika and Andrey Duka, who act as co-Chief Executive Officers. The company’s 2021 income statement and balance sheet follow: