Saxo Bank reports lowest FX volumes on record in August

abdelaziz Fathi

Saxo Bank has reported its monthly metrics for August 2021, which ultimately failed to overtake last month’s flat volumes, showing a renewed decline month-over-month across all business segments.

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The Danish multi-asset brokerage saw its FX average daily volumes drop to $4.4 billion, the lowest on record and was also down -13 percent month-over-month from $5.1 billion in the month prior. Across a yearly timeframe, this figure also failed to best its 2020 equivalent, scoring a 25 percent drop year-over-year from $5.9 billion in August 2020.

Additionally, the ADV metric is lower by over 40 percent from the year’s peak set earlier in March at $7.4 billion.

In terms of Saxo Bank’s total monthly FX volume for August 2021, it was reported at $96.8 billion, which is down -13.5 percent from $111.9 billion a month ago. Further, this figure corresponds to a yearly drop of 22 percent compared to $123.4 billion in 2020.

In terms of its equities business, Saxo Bank also disappointed in this segment after yielding a figure of $5.8 billion in August 2021, down by 18 percent from the $7.1 billion reported in July. The ADV figure was however higher by 40 percent from $4.0 billion set back a year earlier.

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Overall, Saxo Bank’s average daily volume across all asset classes was lower during August 2021, reported at $12 billion per day, down 15 percent month-over-month relative to $14.1 billion the month prior. Moreover, the figure was also lower by 15 percent from $13.3 billion a year ago.

In the first half of 2021, Saxo Bank reported a record number of new clients, client assets, number of trades, growth in the equity trading business and operating income during the first six months of the year.

The multi-asset group marked mild growth in revenues, which came in at DKK 2.4 billion ($376 million), up 5 percent from DKK 2.3 billion for the same period last year. As for the bottom-line metrics, Saxo Bank disclosed a net profit of DKK 512 million ($80.3 million), slightly down by 3 percent from DKK 529 million in the Jan-Jun period of 2020.

Furthermore, Saxo Bank won more clients with total active accounts crossing 790,000 for the first time in the company’s 29-year history. Having onboarded more than 159,000 new accounts in the first half, total clients’ assets under custody grew to DKK 595 billion as of 30 June 2021.

That was another record-breaking milestone for the Danish broker, which took 25 years to reach the DKK 100 billion mark and then only 4 years to add an additional DKK 500 billion in client assets.

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