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Glimpse into MIG Bank and Dukascopy financials - Swiss forex profitability is low

by Michael Greenberg
    Glimpse into MIG Bank and Dukascopy financials - Swiss forex profitability is low
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    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:

    table.tableizer-table {border: 1px solid #CCC; font-family: Arial, Helvetica, sans-serif; font-size: 12px;} .tableizer-table td {padding: 4px; margin: 3px; border: 1px solid #ccc;}

    .tableizer-table th {background-color: #104E8B; color: #FFF; font-weight: bold;}

    Balance Sheet as of 30 June 2012
    AssetsLiabilities
    30.06.201230.06.201130.06.201230.06.2011
    CHFCHFCHFCHF
    Liquid assets 77 915 588 40 328 502Amounts due to banks 6 259 179 3 542 648
    Amounts due from banks 39 536 337 51 793 467Other amounts due to customers 86 100 555 64 843 489
    Amounts due from customers 401 203 171 658Accrued expenses and deferred income 2 776 885 2 410 439
    Participations 1 386 497 788 268Other liabilities 6 702 114 2 643 349
    Tangible fixed assets 2 130 333 2 475 788Value adjustments and provisions 1 299 230 1 921 743
    Intangible assets 2 014 505 2 583 836Share capital 22 000 000 22 000 000
    Accrued income and prepaid expenses 601 001 165 718General legal reserve 151 000 106 000
    Other assets 5 653 318 1 918 734Profit brought forward 2 713 304 1 870 655
    Total Assets 129 638 782 100 225 972Half year profit 1 636 515 887 649
    Total amounts due from Group companies andTotal Liabilities 129 638 782 100 225 972
    qualified participants 00Total amounts due to Group companies and qualified
    Irreovocable commitments 758 000 728 000participants 1 079 1720
    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
    30.06.201230.06.201130.06.201230.06.2011
    CHFCHFCHFCHF
    Interest incomeOperating expenses
    Interest income 17 972 20 599Personnel 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 933Total operating expenses(10 848 837) (11 243 791)
    Income from commissions and servicesGross profit 3 477 333 3 222 222
    Commission income from investment activities 022 203Depreciation (1 172 558) (2 048 889)
    Commission income from other services 103 560 49Value adjustments, provisions and losses (13 660) (46 862)
    Commission expenses (43 790) (24 776)Profit before extraordinary items and taxes2 291 115 1 126 471
    Net incom from commissions and services 59 770 (2 524)Extraordinary income00
    Trading income 14 251 931 14 448 604Extraordinary expenses00
    Taxes (654 600) (359 422)
    Half year profit 1 636 515767 049

    MIG:

    table.tableizer-table {border: 1px solid #CCC; font-family: Arial, Helvetica, sans-serif; font-size: 12px;} .tableizer-table td {padding: 4px; margin: 3px; border: 1px solid #ccc;}

    .tableizer-table th {background-color: #104E8B; color: #FFF; font-weight: bold;}

    Balance Sheet as of 30 June 2012
    AssetsLiabilities
    30.06.201230.06.201130.06.201230.06.2011
    CHFCHFCHFCHF
    Liquid assets 55 685 979 33 584 773Amounts due to banks 196 568 156 068
    Amounts due from banks 108 477 895 125 025 467Other amounts due to customers 150 389 003 113 180 327
    Amounts due from customers 2 533 481 1 179 881Accrued expenses and deferred income 5 368 641 10 596 448
    Trading portfolios323 6960Other liabilities 9 202 634 12 951 906
    Participating interests2 202 4470Value adjustments and provisions 1 890 370 2 213 476
    Tangible fixed assets 7 470 820 7 264 177Reserves for general banking risk10 150 000 21 850 000
    Accrued income and prepaid expenses 6 848 667 2 515 204Share capital 45 000 000 45 000 000
    Other assets 49 057 338 49 168 539General legal reserve 6 916 835 6 535 161
    Total Assets 232 600 323 218 738 041Profit brought forward 2 872 981 121 175
    Profit for the period 613 291 6 133 480
    Total subordinated claims 745 150Total Liabilities 232 600 323 218 738 041
    Total amounts due from group companies and holders of 759 005
    qualified participationsTotal amounts due to Group companies and qualified1 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
    30.06.201230.06.201130.06.201230.06.2011
    CHFCHFCHFCHF
    Result from interest operationsOperating expenses
    Interest and discount income 117 53080 564Personnel expenses –11 029 214 –9 647 271
    Interest and dividend income trading portfolios1 9860Other operating expenses –8 327 525 –7 615 738
    Interest expenses –24 917 –203 658Total operating expenses–19 356 739 –17 263 009
    Result from interest operations 94 599 –123 094Gross profit–8 311 825 6 454 774
    Result from commission business and servicesDepreciation and amortisation of fixed assets–2 768 948 –1 919 941
    Commission income from lending activities 6070Value adjustments, provisions and losses –5 936 –135 191
    Commission income from other services 46 474 58 758Extraordinary income11 700 000 405 215
    Commission expense –33 992–48 510Extraordinary expenses0–541 018
    Result from commission business and services 13 089 10 248Taxes 0–655 206
    Result from trading activities 10 922 260 23 815 677Half 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

    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:

    table.tableizer-table {border: 1px solid #CCC; font-family: Arial, Helvetica, sans-serif; font-size: 12px;} .tableizer-table td {padding: 4px; margin: 3px; border: 1px solid #ccc;}

    .tableizer-table th {background-color: #104E8B; color: #FFF; font-weight: bold;}

    Balance Sheet as of 30 June 2012
    AssetsLiabilities
    30.06.201230.06.201130.06.201230.06.2011
    CHFCHFCHFCHF
    Liquid assets 77 915 588 40 328 502Amounts due to banks 6 259 179 3 542 648
    Amounts due from banks 39 536 337 51 793 467Other amounts due to customers 86 100 555 64 843 489
    Amounts due from customers 401 203 171 658Accrued expenses and deferred income 2 776 885 2 410 439
    Participations 1 386 497 788 268Other liabilities 6 702 114 2 643 349
    Tangible fixed assets 2 130 333 2 475 788Value adjustments and provisions 1 299 230 1 921 743
    Intangible assets 2 014 505 2 583 836Share capital 22 000 000 22 000 000
    Accrued income and prepaid expenses 601 001 165 718General legal reserve 151 000 106 000
    Other assets 5 653 318 1 918 734Profit brought forward 2 713 304 1 870 655
    Total Assets 129 638 782 100 225 972Half year profit 1 636 515 887 649
    Total amounts due from Group companies andTotal Liabilities 129 638 782 100 225 972
    qualified participants 00Total amounts due to Group companies and qualified
    Irreovocable commitments 758 000 728 000participants 1 079 1720
    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
    30.06.201230.06.201130.06.201230.06.2011
    CHFCHFCHFCHF
    Interest incomeOperating expenses
    Interest income 17 972 20 599Personnel 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 933Total operating expenses(10 848 837) (11 243 791)
    Income from commissions and servicesGross profit 3 477 333 3 222 222
    Commission income from investment activities 022 203Depreciation (1 172 558) (2 048 889)
    Commission income from other services 103 560 49Value adjustments, provisions and losses (13 660) (46 862)
    Commission expenses (43 790) (24 776)Profit before extraordinary items and taxes2 291 115 1 126 471
    Net incom from commissions and services 59 770 (2 524)Extraordinary income00
    Trading income 14 251 931 14 448 604Extraordinary expenses00
    Taxes (654 600) (359 422)
    Half year profit 1 636 515767 049

    MIG:

    table.tableizer-table {border: 1px solid #CCC; font-family: Arial, Helvetica, sans-serif; font-size: 12px;} .tableizer-table td {padding: 4px; margin: 3px; border: 1px solid #ccc;}

    .tableizer-table th {background-color: #104E8B; color: #FFF; font-weight: bold;}

    Balance Sheet as of 30 June 2012
    AssetsLiabilities
    30.06.201230.06.201130.06.201230.06.2011
    CHFCHFCHFCHF
    Liquid assets 55 685 979 33 584 773Amounts due to banks 196 568 156 068
    Amounts due from banks 108 477 895 125 025 467Other amounts due to customers 150 389 003 113 180 327
    Amounts due from customers 2 533 481 1 179 881Accrued expenses and deferred income 5 368 641 10 596 448
    Trading portfolios323 6960Other liabilities 9 202 634 12 951 906
    Participating interests2 202 4470Value adjustments and provisions 1 890 370 2 213 476
    Tangible fixed assets 7 470 820 7 264 177Reserves for general banking risk10 150 000 21 850 000
    Accrued income and prepaid expenses 6 848 667 2 515 204Share capital 45 000 000 45 000 000
    Other assets 49 057 338 49 168 539General legal reserve 6 916 835 6 535 161
    Total Assets 232 600 323 218 738 041Profit brought forward 2 872 981 121 175
    Profit for the period 613 291 6 133 480
    Total subordinated claims 745 150Total Liabilities 232 600 323 218 738 041
    Total amounts due from group companies and holders of 759 005
    qualified participationsTotal amounts due to Group companies and qualified1 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
    30.06.201230.06.201130.06.201230.06.2011
    CHFCHFCHFCHF
    Result from interest operationsOperating expenses
    Interest and discount income 117 53080 564Personnel expenses –11 029 214 –9 647 271
    Interest and dividend income trading portfolios1 9860Other operating expenses –8 327 525 –7 615 738
    Interest expenses –24 917 –203 658Total operating expenses–19 356 739 –17 263 009
    Result from interest operations 94 599 –123 094Gross profit–8 311 825 6 454 774
    Result from commission business and servicesDepreciation and amortisation of fixed assets–2 768 948 –1 919 941
    Commission income from lending activities 6070Value adjustments, provisions and losses –5 936 –135 191
    Commission income from other services 46 474 58 758Extraordinary income11 700 000 405 215
    Commission expense –33 992–48 510Extraordinary expenses0–541 018
    Result from commission business and services 13 089 10 248Taxes 0–655 206
    Result from trading activities 10 922 260 23 815 677Half 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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