The Saxo Bank Group announced a 35% increase in its adjusted net profit for the first half of 2024, reporting EUR 68 million compared to EUR 50 million in the same period last year.
This growth was attributed to a new pricing structure and enhanced client experience, which led to record client numbers and assets.
As of June 30, 2024, Saxo Bank had over 1.2 million end clients and EUR 109 billion in client assets. This growth occurred despite low volatility in financial markets, which resulted in reduced trading and investing activity. However, higher interest rates and increased client funding positively impacted financial performance.
The bank’s total income for the first half of 2024 reached EUR 311 million, a slight increase from EUR 300 million in the previous year. Income was evenly distributed across its business areas, with trader clients contributing 34%, investor clients 34%, and institutional clients 32%.
S&P upgraded Saxo Bank’s credit rating from BBB to A- during the first half of 2024, reflecting the bank’s strong financial position.
In the Asia-Pacific region, Saxo Bank initiated a restructuring of its distribution model to improve focus, compliance, risk management, and operational efficiency. This included the closure of its Shanghai office and strategic reviews of its operations in Hong Kong, Japan, and Australia. The restructuring resulted in costs of EUR 6 million for the first half of the year.
Looking ahead, Saxo Bank expects its full-year adjusted net profit to fall within the previously guided range of EUR 114 to 134 million.
H1 2024 Key Financial Figures (H1 2023):
Total income: EUR 311 million (EUR 300 million)
Adjusted net profit: EUR 68 million (EUR 50 million)
Net profit: EUR 62 million (EUR 38 million)
Total client assets: EUR 109 billion (EUR 97 billion)
Total capital ratio: 28% (31.9%)
Saxo Bank’s CEO and Founder, Kim Fournais, commented on the results, stating that the positive momentum reflects the success of the bank’s strategy. “More than 1.2 million clients now trust Saxo with over EUR 109 billion in assets,” he noted, emphasizing the importance of diversification in client portfolios.
All figures were converted from DKK to EUR using an exchange rate of 7.46 as of August 27, 2024.
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