Saxo Bank reports record volumes for commodities trading, FX also shines

abdelaziz Fathi

In a volatile market driven by Russia-Ukraine headlines, FX trading volumes through Saxo Bank have surged to the highest level in more than twelve months.

Saxo Bank’s clients traded worth $6.6 billion daily in March, up 18 percent month-over-month compared to $5.6 billion in February 2022. Saxo’s FX ADV for last month was, however, lower year-over-year, correlating to a drop of 11 percent relative to $7.4 billion in March 2021.

Saxo Bank’s total monthly FX volume also reportedly soared to the highest level in a year, coming in at $152.2 billion in March. This figure was up 34 percent from February’s totals, but corresponds to a yearly drop of 10 percent when compared to $170 billion a year earlier.

Furthermore, the increased volatility has given Saxo extraordinary volumes in the commodities segment. The total monthly volume hit an all-time high at $67 billion, up 52 percent month-over-month from $44 billion in February. The figure was also higher by nearly 72 percent from its 2021 equivalent.

Despite the bullish performance in FX and commodities turnover, Saxo Bank’s average daily volume across all asset classes was lower during March 2022. The Danish multi-asset brokerage reported the ADV figure at $20 billion per day relative to $21 billion the month prior. Moreover, the figure was higher by 17 percent from $17.1 billion a year ago.

Saxo Bank reports growth in revenue

Saxo Bank reported surging revenues for 2021 as Covid-19 remains a key trigger for customers’ trading activity, but its earnings were almost the same compared to a year earlier. Copenhagen-based broker marked mild growth in revenues, which came in at DKK 4.5 billion ($685 million), up 4 percent from DKK 4.3 billion for the same period last year.

As for the bottom-line metrics, Saxo Bank disclosed a net profit of DKK 755 million ($114 million), slightly higher from DKK 750 million in the Jan-Dec period of 2020.

Furthermore, Saxo Bank won more clients with total active accounts crossing 820,000 for the first time in the company’s 30-year history. Having onboarded more than 263,000 new accounts last year, total clients’ assets under custody grew to DKK 640 billion as of December 2021.

On the operations front, Saxo Bank  completed integration with BinckBank, which it acquired in 2019, but the last segment of the Dutch lender’s clients is yet to be migrated later this year. The transaction added more than 400,000 direct clients across four jurisdictions in the Netherlands, Belgium, France, and Italy.

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