Glimpse into MIG Bank and Dukascopy financials – Swiss forex profitability is low
MIG Bank and Dukascopy’s financials recently became available and we can take a look and see what they looked like
MIG Bank and Dukascopy’s financials recently became available and we can take a look and see what they looked like in H1 2012. It seems that MIG is double the size of Dukascopy (balance sheet) however experienced a severe slow down in H1 2012 as compared to H1 2011 – trading income halved, which slashed its net profit by 83%. Dukascopy showed similar income but improved slightly on operational side which double its net profit. All in all these firms show very low income and profit levels.
Dukascopy:
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| Balance Sheet as of 30 June 2012 | |||||
|---|---|---|---|---|---|
| Assets | Liabilities | ||||
| 30.06.2012 | 30.06.2011 | 30.06.2012 | 30.06.2011 | ||
| CHF | CHF | CHF | CHF | ||
| Liquid assets | 77 915 588 | 40 328 502 | Amounts due to banks | 6 259 179 | 3 542 648 |
| Amounts due from banks | 39 536 337 | 51 793 467 | Other amounts due to customers | 86 100 555 | 64 843 489 |
| Amounts due from customers | 401 203 | 171 658 | Accrued expenses and deferred income | 2 776 885 | 2 410 439 |
| Participations | 1 386 497 | 788 268 | Other liabilities | 6 702 114 | 2 643 349 |
| Tangible fixed assets | 2 130 333 | 2 475 788 | Value adjustments and provisions | 1 299 230 | 1 921 743 |
| Intangible assets | 2 014 505 | 2 583 836 | Share capital | 22 000 000 | 22 000 000 |
| Accrued income and prepaid expenses | 601 001 | 165 718 | General legal reserve | 151 000 | 106 000 |
| Other assets | 5 653 318 | 1 918 734 | Profit brought forward | 2 713 304 | 1 870 655 |
| Total Assets | 129 638 782 | 100 225 972 | Half year profit | 1 636 515 | 887 649 |
| Total amounts due from Group companies and | Total Liabilities | 129 638 782 | 100 225 972 | ||
| qualified participants | 0 | 0 | Total amounts due to Group companies and qualified | ||
| Irreovocable commitments | 758 000 | 728 000 | participants | 1 079 172 | 0 |
| Off-balance sheet financial instruments | |||||
| Underlying amounts | 2 145 122 803 | 1 100 418 861 | |||
| Positive replacement values | 5 574 774 | 1 918 734 | |||
| Negative replacement values | 5 983 773 | 2 175 419 | |||
| Statement of income for the period ended 30 June 2012 | |||||
| 30.06.2012 | 30.06.2011 | 30.06.2012 | 30.06.2011 | ||
| CHF | CHF | CHF | CHF | ||
| Interest income | Operating expenses | ||||
| Interest income | 17 972 | 20 599 | Personnel expenses | (6 553 446) | (7 096 371) |
| Interest expenses | (3 503) | (666) | Other operating expenses | (4 295 391) | (4 147 420) |
| Net interest income | 14 469 | 19 933 | Total operating expenses | (10 848 837) | (11 243 791) |
| Income from commissions and services | Gross profit | 3 477 333 | 3 222 222 | ||
| Commission income from investment activities | 0 | 22 203 | Depreciation | (1 172 558) | (2 048 889) |
| Commission income from other services | 103 560 | 49 | Value adjustments, provisions and losses | (13 660) | (46 862) |
| Commission expenses | (43 790) | (24 776) | Profit before extraordinary items and taxes | 2 291 115 | 1 126 471 |
| Net incom from commissions and services | 59 770 | (2 524) | Extraordinary income | 0 | 0 |
| Trading income | 14 251 931 | 14 448 604 | Extraordinary expenses | 0 | 0 |
| Taxes | (654 600) | (359 422) | |||
| Half year profit | 1 636 515 | 767 049 |
MIG:
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| Balance Sheet as of 30 June 2012 | |||||
|---|---|---|---|---|---|
| Assets | Liabilities | ||||
| 30.06.2012 | 30.06.2011 | 30.06.2012 | 30.06.2011 | ||
| CHF | CHF | CHF | CHF | ||
| Liquid assets | 55 685 979 | 33 584 773 | Amounts due to banks | 196 568 | 156 068 |
| Amounts due from banks | 108 477 895 | 125 025 467 | Other amounts due to customers | 150 389 003 | 113 180 327 |
| Amounts due from customers | 2 533 481 | 1 179 881 | Accrued expenses and deferred income | 5 368 641 | 10 596 448 |
| Trading portfolios | 323 696 | 0 | Other liabilities | 9 202 634 | 12 951 906 |
| Participating interests | 2 202 447 | 0 | Value adjustments and provisions | 1 890 370 | 2 213 476 |
| Tangible fixed assets | 7 470 820 | 7 264 177 | Reserves for general banking risk | 10 150 000 | 21 850 000 |
| Accrued income and prepaid expenses | 6 848 667 | 2 515 204 | Share capital | 45 000 000 | 45 000 000 |
| Other assets | 49 057 338 | 49 168 539 | General legal reserve | 6 916 835 | 6 535 161 |
| Total Assets | 232 600 323 | 218 738 041 | Profit brought forward | 2 872 981 | 121 175 |
| Profit for the period | 613 291 | 6 133 480 | |||
| Total subordinated claims | 745 150 | Total Liabilities | 232 600 323 | 218 738 041 | |
| Total amounts due from group companies and holders of | 759 005 | ||||
| qualified participations | Total amounts due to Group companies and qualified | 1 275 282 | 1 625 935 | ||
| participants | |||||
| Derivative financial instruments | |||||
| – Contract volume | 2 200 285 702 | 1 590 634 630 | |||
| – Positive replacement values | 48 400 942 | 49 134 212 | |||
| – Negative replacement values | –8 518 707 | –11 667 766 | |||
| Statement of income for the period ended 30 June 2012 | |||||
| 30.06.2012 | 30.06.2011 | 30.06.2012 | 30.06.2011 | ||
| CHF | CHF | CHF | CHF | ||
| Result from interest operations | Operating expenses | ||||
| Interest and discount income | 117 530 | 80 564 | Personnel expenses | –11 029 214 | –9 647 271 |
| Interest and dividend income trading portfolios | 1 986 | 0 | Other operating expenses | –8 327 525 | –7 615 738 |
| Interest expenses | –24 917 | –203 658 | Total operating expenses | –19 356 739 | –17 263 009 |
| Result from interest operations | 94 599 | –123 094 | Gross profit | –8 311 825 | 6 454 774 |
| Result from commission business and services | Depreciation and amortisation of fixed assets | –2 768 948 | –1 919 941 | ||
| Commission income from lending activities | 607 | 0 | Value adjustments, provisions and losses | –5 936 | –135 191 |
| Commission income from other services | 46 474 | 58 758 | Extraordinary income | 11 700 000 | 405 215 |
| Commission expense | –33 992 | –48 510 | Extraordinary expenses | 0 | –541 018 |
| Result from commission business and services | 13 089 | 10 248 | Taxes | 0 | –655 206 |
| Result from trading activities | 10 922 260 | 23 815 677 | Half year profit | 613 291 | 3 608 633 |
| Other result from ordinary activities | |||||
| Other ordinary income | 14 966 | 14 952 | |||
| Other result from ordinary activities | 14 966 | 14 952 |
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Whwre did you take this data from? FINMA?
Whwre did you take this data from? FINMA?
bank reporting requirements
bank reporting requirements
🙂
I totally agree, but where can I find these reports? Are they confidential information or openly accessible?
🙂
I totally agree, but where can I find these reports? Are they confidential information or openly accessible?
hmm, let me ask FX Bridge
hmm, let me ask FX Bridge
“Amounts due to customers” is client equity (balances + mark-to-market PnL for open positions) i assume? If correct, they are bigger than i would have thought. And quite an impressive YoY growth.
It also seems Dukascopy is making double the money on per-million-customer-equity basis. Begs the question how, since both firms tout that they are agency brokers and dont take risk against customer positions. Especially since MIGs mark-up (accourding to the table on their website) is way higher than Dukascopys commissions.
“Amounts due to customers” is client equity (balances + mark-to-market PnL for open positions) i assume? If correct, they are bigger than i would have thought. And quite an impressive YoY growth.
It also seems Dukascopy is making double the money on per-million-customer-equity basis. Begs the question how, since both firms tout that they are agency brokers and dont take risk against customer positions. Especially since MIGs mark-up (accourding to the table on their website) is way higher than Dukascopys commissions.
not taking risk? you think?
not taking risk? you think?
Re: MIG’s “severe slow down in H1 2012 as compared to H1 2011”, any thoughts then on what accounts for the 11.7M in “Extraordinary income” (from 4o5k the year prior)?
Perhaps the slide in trading income was just simply a reclassification..?
is it possible that these sites copied from one of FX Bridge WLs and not vice versa?
is it possible that these sites copied from one of FX Bridge WLs and not vice versa?
Re: MIG’s “severe slow down in H1 2012 as compared to H1 2011”, any thoughts then on what accounts for the 11.7M in “Extraordinary income” (from 4o5k the year prior)?
Perhaps the slide in trading income was just simply a reclassification..?
very very hard to tell.. but they certainly slipped on income…
very very hard to tell.. but they certainly slipped on income…
Actually, seeing these numbers I am quite happy to be a Forex investment manager. Half year profit of 1.636.515 CHF is not worth the trouble associated with retail clients. The ongoing slaughter of Retail Forex “boutiques” and their marketing expenses are eating massively into profits. Additionally, countless new Retail Forex companies trying to make a “fast buck” and private banks moving into Retail Forex space are changing the business environment.
Actually, seeing these numbers I am quite happy to be a Forex investment manager. Half year profit of 1.636.515 CHF is not worth the trouble associated with retail clients. The ongoing slaughter of Retail Forex “boutiques” and their marketing expenses are eating massively into profits. Additionally, countless new Retail Forex companies trying to make a “fast buck” and private banks moving into Retail Forex space are changing the business environment.
Yes – Anti-competitive too..
Yes – Anti-competitive too..