Saxo Bank flat FX turnover as total volumes stagnate in July

abdelaziz Fathi

Saxo Bank’s clients traded worth $5.4 billion daily in July, that same as it had been the previous month. Saxo’s FX ADV for last month was slightly lower year-over-year relative to $5.5 billion in July 2022.

The Danish multi-asset brokerage reported its total monthly FX volume for July 2022 at $113 billion, which is down 5 percent from $119 billion a month ago. Further, this figure corresponds to a yearly decrease compared to $119 billion in 2022.

In terms of its commodities business, Saxo Bank performance was also weak in this segment after yielding an ADV of $1.4 billion in July 2022, down from the $1.5 billion reported in June.

Overall, Saxo Bank’s average daily volume across all asset classes was mostly down during July 2023, reported at $17.7 billion per day, a fall of 6.3 percent month-over-month relative to $18.9 billion the month prior.

Saxo Bank reports lower revenue

Earlier in July, the Danish Financial Supervisory Authority (FSA) has officially designated Saxo Bank as a Systemically Important Financial Institution (SIFI). This notable classification places Saxo Bank in the league of banks, insurance companies, and other financial institutions whose potential failure poses a substantial risk of triggering a widespread financial crisis.

Widely recognized as “too big to fail,” SIFIs hold a critical position within the financial landscape, warranting heightened regulatory oversight and safeguards to ensure their stability and prevent catastrophic consequences.

The Copenhagen-based broker reported in March lower revenues and net income for the fiscal year 2022 as customer trading activity dropped as compared with the previous year.

Saxo Bank marked a fall in its annual revenues, which came in at DKK 4.45 billion ($635 million), down 1.6 percent from DKK 4.52 billion for the same period last year.

As for the bottom-line metrics, Saxo Bank disclosed a net profit of DKK 711 million ($101.3 million), down 6 percent from DKK 755 million in 2021.

The net profit for 2022 was impacted by lower trading activity following the macroeconomic situation, which created uncertainty for clients who traded less, Saxo said. However, higher interest rates contributed positively to net interest income, partly offsetting the decrease from lower trading activity.

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