The net profits for Dukascopy have increased to CHF 10.4 Million. This is a record 372% increase from what was reported in the previous financial year.
Dukascopy, a retail forex and CFDs broker based in Geneva, has released its financial report for the financial year ended December 31, 2020. The financial report shows impressive income and profits for the year.
The total operating income for the company reached CHF 40.1 Million. This is an annual increase of 43.2%. In 2018 and 2019, the firm had recorded operating incomes of CHF 28 million and CHF 27.4 million, respectively. Most businesses have been recording good performance for 2020, attributed to the market volatility caused by the pandemic.
Key financial performance for the company
The co-CEOs of Dukascopy, Andrey Duka and Veronika, stated that 2020 was a well-performing year for the firm due to increased trading profits. The firm noted that the operating income for the firm had improved after a reduction in operating expenses by 14%. The operating expenses for the period stood at CHF 21 million while the net profits for the year hit a record high of 10.4 million.
The report further highlighted that the firm has assigned CHF 4 million to a reserve for general bank risks. From the reserve, CHF 3.4 million would be used to add to the capital base. If this reserve was not the created, the net profits would have been higher than reported.
The annual financial report also broke down the firm’s performance in different branches. Dukascopy Europe recorded a net profit of CHF 78,000 after a 30.3% reduction in operating expenses. Their Japan branch also accumulated a net profit of CHF 96,000.
Revamping business operations
The co-CEOs of the company also stated that they had seized many growth opportunities to help them survive the harsh times caused by the health crisis. To this end, the firm had adopted mobile banking and engaged in crypto-related activities.
The bank had also adopted effective risk management measures to help them avert any effects caused by lack of liquidity and a decline in oil prices. The CEOs also noted that their operating model had been tested throughout the year, and it showed a robust and reliable ecosystem.
The firm also noted that their adoption of blockchain technology had built agility by creating concrete financial models. The bank had used crypto technology to enhance its service offerings while adhering to anti-money laundering laws. Because of these changes, the bank’s financial results for 2020 had surpassed anything it has recorded since it was created.