Copenhagen-based broker, Saxo Bank reported surging revenues for 2021 as Covid-19 remains a key trigger for customers’ trading activity, but its earnings were almost the same compared to a year earlier.
The FX bank has announced its financial results for the twelve months ending December 31, 2021. The multi-asset group marked mild growth in revenues, which came in at DKK 4.5 billion ($685 million), up 4 percent from DKK 4.3 billion for the same period last year.
As for the bottom-line metrics, Saxo Bank disclosed a net profit of DKK 755 million ($114 million), virtually unchanged from DKK 750 million in the Jan-Dec period of 2020.
Furthermore, Saxo Bank won more clients with total active accounts crossing 820,000 for the first time in the company’s 30-year history. Having onboarded more than 263,000 new accounts last year, total clients’ assets under custody grew to DKK 640 billion as of December 2021.
That was another record-breaking milestone for the Danish broker, which took 25 years to reach the DKK 100 billion mark and then only 4 years to add an additional DKK 540 billion in client assets.
BinckBank clients will be fully migrated 2022
Commenting on the results, Kim Fournais, CEO and founder of Saxo Bank, said: “The year 2021 saw both growth and consolidation for the Saxo Bank Group. In Q1, we saw a record-high inflow of clients and client assets. In subsequent quarters, growth rates stayed positive, albeit at a more moderate level, and we successfully completed the migration of BinckBank’s more than 400,000 direct clients, expanding our footprint in Mid-Europe. We want to thank our passionate and hardworking Saxonians who, despite challenges forced upon us by COVID-19, worked tirelessly to make the transition as smooth as possible for our many clients moving to a new and better investment platform, where they had to get used to the new touch and feel that comes with such a change.”
Saxo Bank added that it completed integration with BinckBank, which it acquired in 2019, but the last segment of the Dutch lender’s clients is yet to be migrated later this year. The transaction added more than 400,000 direct clients across four jurisdictions in the Netherlands, Belgium, France, and Italy.
The two companies have worked on the integration of their technology infrastructure over the last two years. They also plan to launch additional products and services to better compete in light of fierce competition in the online trading and investment sector.
Saxo said that their similar geographic footprint, products and customer bases meant the merger made sense and would also drive efficiencies.