Geneva-based Retail FX broker Dukascopy Bank has reported its financials for the year ending December 31, 2019. The group managed to achieve CHF 2.2 million ($2.27 million) in net profit compared to an operating loss of CHF 1.1 million ($1.07 million) for 2018 and a slight profit of nearly CHF 100k in 2017. Dukascopy gained CHF 2.5 million back in 2016.
The positive performance was mainly attributed to a notable cut in operational expense as only a slight improvement was seen across the group’s revenues in 2019. Specifically, the forex bank witnessed a 600k increase in its operating revenues, which came in at CHF 28 million – this figure is marginally higher from CHF 27.4 million reported back in the year ago.
In terms of its expenses, the figure put together a solid year-over-year performance relative to 2018, having dropped by over 11 percent to CHF 24.4 million in 2019 compared to 27.6 million the previous year.
Other highlights show that Dukascopy Japan closed 2019 with a loss of CHF 53 thousand which was smaller than its previous year loss. Operating expenses of Dukascopy Japan have been reduced by 23.6% on the same period. Dukascopy Europe closed 2019 with a similar loss of CHF 54 thousand, but also managed to cut operating expenses by 33.9% relative to 2018.
Compared to 2018, FX and CFD trading volume has been 23.8% lower, the company said, but trading profitability (income per million traded) increased by 34.0%. For binary options, compared to 2018, the trading volume has been 17.9% lower but trading profitability increased by 8.2%.
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Record profits for Q1 2020
The Swiss broker has also unveiled its preliminary financial metrics for the first quarter of 2020. The firm’s latest report was characterized by positive metrics in areas ranging from operating income to revenues, underpinning its guidance for the full year.
Buoyed by intense trading activity on the back of Coronavirus-spurred volatility, Dukascopy turned a record quarterly profit of CHF 9.5 million ($9.92 million). Proceeds from trading operations also soared to CHF 16.6 million in the three months through March 2020, which was three times higher than the counterpart figure of Q1 2019.
During the last 3 years, Dukascopy substantially invested in diversifying its range of products. Besides its traditional core business, the trading activity, the bank has developed issuance, custody and exchange infrastructure for cryptocurrencies as well as retail mobile banking services including instant payments and card operations. All such investments amounted to nearly CHF 6 million in revenues per year.
The bank and securities houses of Dukascopy Group are regulated in Switzerland, Latvia and Japan. The Group offers multi-products (FX, bullion, CFD, binary options) online and mobile trading platforms together with a range of other financial services including current accounts, guarantees, classical banking payments, instant payments via smartphones, payment cards, as well as its own cryptocurrency.
Dukascopy has been taking steps towards strengthening its budding cryptocurrency offering, including allowing clients to deposit and withdraw funds in digital coins, as well as enabling free internal crypto-transfers between users of mobile banking.