Saxo Bank increases client assets five-fold to $100 billion
Copenhagen-based broker, Saxo Bank has announced a major accomplishment by surpassing the significant milestone of $100 billion in client assets. That was a record-breaking milestone for the Danish broker, which took 25 years to reach the $20 billion mark and then only 5 years to increase the key metric five-fold and add an additional $80 billion.
Saxo Bank said this remarkable achievement highlights its continuous growth in client numbers and deposits, as well as solidifying its position as a prominent financial provider, even amidst a challenging macro-economic environment.
Commenting on this, Kim Fournais, CEO and founder of Saxo Bank, said: “We are humbled and honoured by our clients’ trust, which has propelled us to reach this historic milestone of surpassing USD 100 billion in client assets. This showcases our ability to support our growing number of clients and partners, navigate challenging markets, and deliver a robust investment experience and platforms tailored to our clients’ needs. When we look behind the trend, we can see that clients continuously trust us with a larger share of their wealth whether it’s benefiting from our attractive interest rates on deposits, asset management solutions, or leveraging our trading platforms to seize opportunities across global markets and asset classes.”
Earlier this year, Saxo Bank reported lower revenues and net income for the fiscal year 2022 as customer trading activity dropped as compared with the previous year.
The multi-asset group 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.
Meanwhile, Saxo Bank won more clients with total active accounts crossing 876,000 for the first time in the company’s 30-year history, mainly driven by its institutional business. Despite onboarding more than 56,000 from 2021, rounding off 2022 with a record high, total clients’ assets under custody decreased to DKK 584 billion compared to DKK 595 billion last year. That drop was mainly driven by the decline in the equity market but partly offset by positive net funding from clients.
Saxo Bank added that the cost level remained almost unchanged, not least driven by the delayed completion of the BinckBank migration, which has added cost and complexity in running two parallel infrastructures. The cost/income ratio was also positively impacted by lower staff costs and a reduction in administrative expenses and marketing spend.
