Saxo Bank H1 profit rises 25% despite lower trading volumes

Copenhagen-based broker, Saxo Bank reported higher revenues and net income for the first half of 2023, which reflects its ability to navigate a challenging macroeconomic landscape and focus on core operations.

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The FX bank has announced its financial results for the six months ending June 30, 2023. The multi-asset group marked a rise in H1 revenues, which came in at DKK 2.24 billion, up 4.7 percent from DKK 2.14 billion for the same period last year.

As for the bottom-line metrics, Saxo Bank disclosed a net profit of DKK 376 million, up 25 percent from DKK 302 million in the January-June period of 2022. On an adjusted basis, Saxo Bank reported a net profit of DKK 282 million for the first semester.

Meanwhile, Saxo Bank won more clients with total active accounts crossing 1 million for the first time in the company’s +30-year history. Additionally, Saxo Bank managed client assets worth DKK 721 billion, a substantial increase from DKK 591 billion a year ago, which was positively impacted by net funding of cash and securities totaling DKK 79 billion. The figure was a record-breaking milestone for the Danish broker, which took 25 years to reach the DKK 100 billion mark and then only 5 years to add an additional DKK 621 billion in client assets.

Commenting on the results, Kim Fournais, CEO and Founder of Saxo Bank, said: “While this year was marked by challenging market conditions and continued geopolitical tensions, our half-year results demonstrated resilience and adaptability in the face of changing market dynamics. Of particular significance is Saxo Bank’s recent SIFI designation. We were pleased to receive a BBB rating with a positive outlook from S&P Global Ratings, which highlights our strong capital position and business model, cautious approach to risk management, and ambitious growth strategy.”

The Danish broker said the first half of the year presented an uncertain macroeconomic environment with low market volatility. These factors led to reduced trading and investment activity among the bank’s clients. However, this dip in activity was effectively offset by higher interest income.

In June, Saxo Bank made a strategic move by divesting its 50% interest in Saxo Geely Tech Holding (Saxo Fintech). The decision aimed to optimize the bank’s business operations and refocus on core markets and clients. The divestment did impact net profit for the first half of 2023 negatively by DKK 94 million. However, even with this impact, the adjusted net profit reached DKK 376 million, compared to DKK 302 million for the same period last year.

Looking ahead, Saxo Bank remains optimistic about its financial performance. The bank expects the full-year net profit, adjusted for the divestment of Saxo Geely Tech Holding, to remain within the previously guided range of DKK 650-800 million.