Saxo Bank’s trading volumes nosedive in April 2023
Saxo Bank’s clients traded worth $5.1 billion daily in April, the lowest figure since August 2022 and was down 25 percent month-over-month compared to $6.8 billion in March. Saxo’s FX ADV for last month was also lower by 10.5 year-over-year relative to $5.7 billion in April 2022.
The Danish multi-asset brokerage reported its total monthly FX volume for April 2022 at $102.8 billion, which is down 34 percent from $155.6 billion a month ago. Further, this figure corresponds to a yearly decrease of 18 percent compared to $126 billion in 2022.
In terms of its commodities business, Saxo Bank performance was also weak in this segment after yielding an ADV of $1.7 billion in April 2022, down by 11 percent from the $1.9 billion reported in March.
Overall, Saxo Bank’s average daily volume across all asset classes was sharply lower during April 2023, reported at $15.9 billion per day, a fall of 24 percent month-over-month relative to $21 billion the month prior.
Saxo Bank reports lower revenue
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.
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.
