Saxo Bank’s FX volume resumes downward trajectory
Copenhagen-based Saxo Bank has reported its monthly metrics, which showed a renewed decline month-over-month.
The Danish multi-asset brokerage saw its FX average daily volumes drop to $5.4 billion, which was down 5.3 percent month-over-month from $5.7 billion in May. Across a yearly timeframe, this figure saw a 22 percent decline relative to its 2022 equivalent.
In terms of Saxo Bank’s total monthly FX volume for June 2022, it was reported at $119.5 billion, which is down 8.5 percent from $130.5 billion a month ago. Further, this figure corresponds to a yearly drop of 21 percent compared to $152.5 billion in 2022.
In terms of its commodities business, Saxo Bank performance was also weak in this segment after yielding a figure of $1.5 billion in June 2023, down by 18 percent from the $1.8 billion reported in April.
Overall, Saxo Bank’s average daily volume across all asset classes was flat, reported at $17.8 billion per day, virtually unchanged month-over-month relative to $17.7 billion the month prior. On a yearly basis, it was down 2 percent from $18.1 billion in June 2022.
Earlier this month, 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.