Saxo Bank reports higher profits and client assets as diversification strategy yields results

Saxo Bank Group has reported a net profit of DKK 158 million for the first six months of 2016. During the same period, client collateral deposits continued to rise, increasing by DKK 6 billion, compared to H1 2015, to reach a record high of DKK 82 billion. The operating income for the group reached DKK […]

Saxo Bank Group has reported a net profit of DKK 158 million for the first six months of 2016. During the same period, client collateral deposits continued to rise, increasing by DKK 6 billion, compared to H1 2015, to reach a record high of DKK 82 billion.

The operating income for the group reached DKK 1.5 billion, a significant increase compared to the first half of 2015, which was adversely impacted by the decision by the Swiss National Bank to remove the fixed floor between the Swiss franc and the euro.

The Group continued to strengthen its capital base and as of 30 June 2016, the Common Equity Tier 1 ratio, the Tier 1 capital ratio and the Total capital ratio for the Group were 16.0%, 18.5% and 21.5% respectively, compared with 14.8%, 17.4% and 20.7% as of 31 December 2015.

  • Operating income: DKK 1,459.1 million (DKK 751.5 million in H1 2015)
  • EBITDA:  DKK 429.1 million (DKK -297 million in H1 2015)
  • Adjusted EBITDA: DKK 479.0 million (DKK 494.8 million in H1 2015)
  • Profit before tax: DKK 216.3 million (DKK -592.5 million in H1 2015)
  • Net profit: DKK 158.2 million (DKK -484.6 million in H1 2015)
  • Clients’ collateral deposits: DKK 82,032 million (DKK 76,007 million in H1 2015)
  • Total equity: DKK 4,077.8 million (DKK 4,095.7 million in H1 2015)
  • Total capital ratio: 21.5% (20.7% at the end of 2015).

Commenting on the results, Kim Fournais, CEO and co-Founder of Saxo Bank, said:

“The positive result for first half of the year is testament to our unwavering commitment to innovation and technology to enable our clients to meet their investment and trading needs. I strongly believe that we have the foundation for even stronger growth going forward, as recent product launches complement our existing strong offering and allow us to cater to new clients segments, such as the launch of the market’s first fully digital bond trading solution and SaxoSelect, our digital and automated investment service, aimed at clients looking for a discretionary way of participating in global financial markets.”

The Group continued to deliver on its diversification strategy, which is underpinned by its ability to be a trading and investment facilitator for retail and institutional clients alike. Highlights of the first part of 2016 include:

  • Continued momentum on the flagship platform SaxoTraderGO which has become the most successful platform launch in the history of the company, with widespread adoption among retail and institutional clients
  • With SaxoSelect, Saxo Bank entered the automated investment management space, widening its client offering to also incorporate a new client segment: clients who want to participate in global financial markets, through both active and passive portfolios, but are looking for a discretionary way of doing so. In collaboration with among others BlackRock and Morningstar, Saxo Bank is able to offer clients a form of digital asset management with competitive fees and full transparency, fully integrated in SaxoTraderGo
  • Saxo Bank also recently announced the launch of a fully digital bond trading solution, giving clients direct access to a universe of more than 5,000 government and corporate bonds including more than 3,400 developed-market and 1,600 emerging-market bonds. Clients get the best price from up to 40 of the world’s largest banks and liquidity providers, leading to lower trading costs and a faster and transparent solution for bond traders. This is an opportunity for Saxo Bank to bring efficiency to and gain market share in a significant asset class, further completing its multi-asset offering
  • Saxo Bank has also continued to open access to new markets through partnerships, including entry into the Chinese market through strategic partnerships for example Wallstreet CN. Lastly, the first half of 2016 shows an increase in the on-boarding of Hedge Funds, as well as continued strong traction for Saxo Bank’s FX Prime Brokerage and API Solution.

Read this next

Retail FX

Finalto sweetens offering for African traders with localized FX pairs

Finalto, the financial trading division of Gopher Investments, announced today that it has extended its offering with inclusion of a number of African Pairs to its trading platforms.

Digital Assets

BitMEX secures OAM registration to operate in Italy

Crypto exchange BitMEX has won regulatory approval from Italy’s financial regulators, allowing the exchange to continue serving Italian customers.

Institutional FX

FlexTrade integrates Glimpse’s post-trade bond execution data

“Looking further ahead, this integration also presents multiple opportunities for how fixed-income traders could leverage the trading data. For example, traders could tap Glimpse data as an input to AI-driven automation workflow strategies in the future.”

Industry News

FINRA fines UBS $2.5m for Reg SHO violations and supervisory failures

FINRA has fined UBS $2.5 million for Reg SHO violations and supervisory failures spanning a period of nine years.

Digital Assets

Bitfinex Pay launches feature that minimizes volatility risk

The currency conversion will take place every five minutes on any amount above $10.

Digital Assets

Mastercard launches Crypto Secure for risk assessment in digital asset space

“Crypto Secure will provide card issuers with a platform that allows them access to insights which will improve the safety of crypto purchases, increasing consumer confidence and creating the same trust they expect when paying with Mastercard.”

Retail FX

VT Markets wins 4 more awards including Best Forex Mobile App Global 2022

“Over the past few months, we have noticed a huge spike in downloads and daily active users on the VT Markets App. Our clients can trade multiple asset classes with ultra-low spreads, and access timely market news on our mobile app.”

Institutional FX

Blue Ocean ATS enhances price discovery and liquidity for after hours US stock trading

Liquidity and price discovery, missing from previous overnight trading solutions, are now possible utilizing the TNS network and managed service platform. Security of the private network and its access to all public clouds, uniformity of compliance and regulatory oversight, redundancy and recovery capabilities, plus the localized customer service around the world made TNS the best candidate for this major step in Blue Ocean Technologies’ growth.

Executive Moves, Retail FX

Equiti Group wins CySEC license to expand into Europe

“Regulation and good governance have always been and will continue to be a key part of Equiti’s business model.”

<