Copenhagen-based multi-asset broker SAXO Bank has reported its 2018 financials, posting a sharp increase in net profits during the period. The broker posted a record net profit of DKK 955.8 million (roughly $145 million) for 2018, which is 138 per cent higher compared to 2017 financials at $61 million.
The overall financial health of the group has improved tremendously after the completion of the acquisition and restructuring process of the group.
The group in its financial report has shown an increased client deposit level at DKK 112.6 billion ($17billion), a record for the company. Other financial metrics are as follows:
- The net operating income witnessed a slight drop at $426.33 million, which is 8 per cent lower compared to 2017 figures at $456.83 million.
- The EBITDA came in at $214.36 million in 2018, compared to $141.86 million in 2017, an increase of 51 per cent.
- Total equity at the end of 31st December 2018 came in at $852 million, compared to $700.39 million in 2017.
The group also reported a stronger capital position, with total capital ration coming in at 35 per cent as on 31st Dec 2018, compared to 22.7 per cent reported at the end of 2017. This will help to provide an adequate capital buffer for the company.
The group streamlined its business operation in 2018 to completely focus on trading and investment activities which led to the sale of two non-core businesses SAXO Privatbank and Saxo Payments. Founder and CEO of Saxo Bank, Kim Fournais said on the result:
“2018 has been a defining year for Saxo Bank. We are very proud to have welcomed Geely Holding Group and Sampo plc as new shareholders giving us a strong foundation and governance to execute on our long-term plans.We have launched a wide range of new products, platforms, services and improvements in our pricing to our clients notably the two new platforms, SaxoTraderPRO and SaxoInvestor. All of this enables us to deliver a world-class client experience which has supported the 67 per cent increase in new direct trading clients.”
“Contributing factors to the small decline in revenue are the sale of our last non-core activities, lower client activity levels given the generally difficult market conditions as well as the introduction of lower prices across products.”
“We continue the new year with record high investments in our technology and people to improve the SaxoExperience to be the partner of choice for traders, investors and wholesale partners whilst reducing cost and complexity in a scalable manner.”
“With a stronger capital base than ever before, we have a solid foundation for executing the planned acquisition of BinckBank. BinckBank and Saxo Bank are highly complementary, and the combination of the businesses will create win-win for all stakeholders as clients will be offered better products, prices, platforms and services, employees will benefit from enhanced career opportunities in a larger international organisation and, crucially, we gain necessary scale.”