Saxo Bank volumes increase 11% despite lackluster FX activity
Saxo Bank’s clients traded worth $4.9 billion daily in August, the lowest figure in twelve months and was also down nine percent month-over-month compared to $5.4 billion in July. Saxo’s FX ADV for last month was virtually unchanged year-over-year relative to $4.8 billion in August 2022.
The Danish multi-asset brokerage reported its total monthly FX volume for August 2023 at $112.3 billion, which is down from $112.9 billion a month ago. However, this figure corresponds to a yearly increase of three percent compared to $109 billion in 2022.
In terms of its commodities business, Saxo Bank performance was strong in this segment after yielding an ADV of $1.6 billion in August 2023, up by 14 percent from the $1.4 billion reported in July.
Overall, Saxo Bank’s average daily volume across all asset classes was higher during August, reported at $19.7 billion per day, up by 11.3 percent month-over-month relative to $17.7 billion the month prior.
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.