Dukascopy Posts Solid H1 Results; Q2 Pales in Comparison to Q1 Growth
FX broker Dukascopy has unveiled its financial statement for the first-half period ending June 30, 2020. The Geneva-based firm’s latest report was characterized by positive metrics in areas ranging from operating income to revenues, underpinning its guidance for the full year.
Specifically, the forex bank witnessed a surge in its operating revenues, which came in at $28.0 million (CHF 25.4 million) – this figure is 74 percent from $14.23 million (CHF 14.6 million) reported back in the same period a year ago.
The Most Diverse Audience to Date at FMLS 2020 – Where Finance Meets Innovation
In terms of its operating income, the figure put together a strong year-over-year performance relative to 2019, having yielded a profit of $16.2 million (CHF 14.7 million) compared to $1.07 million (CHF 1.05 million) for the six months ending June 30, 2019.
The broker’s ultimate bottom-line figure, which factored out interest receivable and other income, has also significantly improved to a net profit of $13.8 million (CHF 12.5 million) in the first six months of 2020, compared to an operating gain of $737,447 (CHF 724,987) during the same period a year ago.
Q1 results underpin earnings
Meanwhile, the bulk of positive earnings for the six months through June 2019 could be easily attributed to solid figures reported for the first quarter.
Buoyed by intense trading activity on the back of Coronavirus-spurred volatility, Dukascopy turned a record quarterly profit of CHF 9.5 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.
So excluding Q1 metrics, Dukascopy has made less than CHF 8.5 million in Q2 revenues while its net profit for the same period was just a third of what it achieved in the Jan-March quarter.
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.
Source: Read Full Article