Dukascopy Bank SA's revenues drop - why?
The Dukascopy Bank SA Group, which also includes the Dukascopy Europe broker, published the results for the first half of 2017. Revenues fell to the lowest level since the first half of 2014, although they are slightly lower than in the second half of 2016. At the moment, the company plans to continue its policy and unlimited spending.
Turning up, revenue down
Although the information itself may have a seemingly negative effect (decrease in revenue to the lowest level in three years), the report itself shows that the trading volume increased by 7%, and customer deposits increased by more than 4 million CHF. The Dukascopy representative also pays special attention to the changes taking place in the Forex market, in particular when it comes to volatility in major currency pairs.
Laurent Bellieres, CFO Dukascopy Bank:
“Compared to the first six months of 2016, trading volume has increased by 7% to CHF 61,6 billion per month (around US $ 64 billion per month), which is slightly far from the Swissquote currency liquidity mentioned above. We focus on continuous growth in business volume as the main indicator of competitiveness and strategic success. "
It also adds:
“Another positive remark is the contribution of our subsidiaries to the consolidated customer deposits and net profit. The fact is that 2017 is a challenge in terms of commercial profitability, mainly due to the specific market conditions. Our highly competitive commission rates are favorable to traders but make it difficult to generate revenue for our Group, even as the company grows in size. Another important factor was the increase in operating costs. The latter were kept in the budget and the financial forecast predicted higher revenues. We will decide soon if spending will have to be cut. "