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 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

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