Swiss FX bank Dukascopy has unveiled its financial statement for the six months ending June 30, 2024.
The Geneva-based firm’s latest report was characterized by weak metrics in areas ranging from operating income to revenues.
Specifically, the forex bank’s semi-annual revenues fell by more than a third to CHF 7.1 million in the first half of 2024, down from CHF 11.4 million a year ago. Revenue from trading activities nearly halved to CHF 5.1 million, down from CHF 9.6 million in the first semester of 2023.
Dukascopy operating expenses, including personnel and administrative costs, increased to CHF 9.80 million from CHF 9.75 million in the previous year. The depreciation and value adjustments on tangible and intangible assets also impacted the bottom line, but the overall operating income remained negative at CHF 3.1 million compared to a profit of CHF 787,635 last year.
That said, Dukascopy benefited from higher interest rates, generating CHF 1.33 million from interest income relative to CHF 685,683 a year ago. The bank also earned CHF 629,781 net from other commission businesses and services.
The broker’s ultimate bottom-line figure, which factored out interest receivable and other income also showed a sluggish year-over-year performance relative to 2023, having yielded a profit of CHF 80,815, from CHF 438,851 in the previous year.
Dukascopy has recently offered a 50% cashback offer on volume commissions for former FlowBank clients.
The move comes hot on the heels of Switzerland’s financial regulator’s order to shut down FlowBank due to severe breaches of capital requirements and other supervisory laws. This follows a series of enforcement actions against the bank that began in October 2021.
FlowBank traders are now invited to open accounts with Dukascopy to take advantage of this offer. Once an account is opened, traders need to inform their personal account managers of their eligibility to begin receiving the cashback benefits.
Dukascopy lures newcomers with a variety of trading platforms, and wide asset coverage, allowing them to trade in forex, metals, commodities, stocks, indexes, ETFs, bonds, and cryptocurrencies. Additionally, Dukascopy highlights its commitment to Swiss banking security standards, transparent pricing, and deposit protection up to CHF 100,000.
Elsewhere, the bank rolled out a novel lending product that allows customers to leverage their cryptocurrency holdings. The automated feature enables users to borrow up to 50% of the value of their digital assets in fiat currency while still retaining ownership of their original crypto investments.
Dukascopy Bank, headquartered in Geneva, is now offering clients the option to secure a cash loan in U.S. dollars while keeping their cryptocurrency investments intact. Under the bank’s new lending program, clients can access a loan for up to half of the value of their cryptocurrency assets in fiat currency.
Dukascopy’s introduction of this lending service comes amid challenging times for the cryptocurrency industry and the crypto lending sector in particular. Both are facing increased regulatory pressures and high-profile bankruptcies such as those of Celsius and Voyager.
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