Dukascopy Profit Falls 58% as Trading Income Drops in First…

Dukascopy Bank reported consolidated profit of CHF 1.38 million for the six months ended June 30, a decline of 58.1% from CHF 3.29 million in the same period a year earlier. The Geneva-based lender said the drop came despite sharp growth in customer deposits and total assets.

Trading remained the group's largest income source and the main driver of the decline. The consolidated result from trading activities fell 25.1% to CHF 8.77 million from CHF 11.71 million, and accounted for roughly 76% of the CHF 11.49 million generated by the group's three main income streams.

Net interest income also weakened, sliding 32.9% to CHF 383,918 from about CHF 572,000. Dukascopy booked CHF 26,864 in value adjustments for default risks and losses tied to interest operations, against no comparable charge a year earlier. Commission income moved the other way, rising 36.7% to CHF 2.33 million from CHF 1.70 million on higher service income and lower commission expenses.

Balance sheet expands

The gain in commissions was not enough to offset the shortfall elsewhere. Combined income from the three categories dropped about 18% to CHF 11.49 million from CHF 13.98 million, while operating expenses fell only 1.5% to approximately CHF 9.50 million. Consolidated operating profit declined 55.5% to CHF 1.78 million from CHF 4 million. Tax expenses came in at CHF 398,746 versus CHF 719,851 a year earlier. At the bank level, standalone profit was CHF 1.51 million, about 55% below the CHF 3.32 million reported previously.

Customer deposits reached CHF 239.29 million at the end of June, up CHF 48.38 million, or roughly 25%, from the end of December. Total consolidated assets rose 19% to CHF 309.50 million from CHF 260.82 million, and liquid assets climbed 35% to CHF 164.10 million. Amounts due from banks increased to CHF 78.88 million, while amounts due from customers fell 13% to CHF 10.22 million. The interim statement does not break the deposit increase down by customer type, geography or account category.

The consolidated group includes Dukascopy Europe IBS, Dukascopy Japan and SWFX alongside the Swiss bank. The statement offered no management explanation for the trading decline and no guidance for the second half. Dukascopy continued to expand its offering during the period, including a new banking application and a broader stock and CFD lineup, though the results do not yet show whether those initiatives can meaningfully lift revenue.