Saxo Bank doubles profits as client inflows continue and collateral deposits reach new highs
Saxo Bank, the online trading and investment specialist, more than doubled its year-on-year net profit in 2014, with earnings reaching DKK 381 million for the year ending 31 December 2014. Client collateral deposits held with Saxo Bank increased by DKK 17.6 billion year-on-year, reaching a record high of DKK 68.2 billion. The collateral deposits continued to climb throughout January and February 2015 and are at DKK 73.9 billion as of 28 February.
Following uncertainty over the recovery in the global economy during the first months of 2014, Saxo Bank's trading volumes picked up in the second half of 2014 due to a focused approach to retaining clients and attracting new clients combined with increased trading activity making 2014 the most profitable year since 2011:
- Operating income: DKK 3,006 million (DKK 2,861 million in 2013)
- EBITDA: DKK 1,099 million (DKK 898 million in 2013)
- Profit before tax: DKK 564 million (DKK 247 million in 2013)
- Net profit: DKK 381 million (DKK 162 million in 2013)
- Clients' collateral deposits: 68.2 DKK billion (DKK 50.6 billion in 2013)
- Total equity: DKK 4,225 million (DKK 3,493 million in 2013)
During 2014, Saxo Bank continued to enhance its platforms and products to provide its retail and institutional clients with the most sophisticated multi-asset platform available, while at the same time diversifying its revenue streams from both lines of business. On the retail side, trading revenues continued to increase with the bank's focus on clients, efficiency, profitability and optimisation of the entire value chain. The bank plans to continue with this strategy in 2015, in addition to continuing the development of its White Label, Institutional, High Net Worth Private and Digital businesses.
The founders and co-CEOs of Saxo Bank, Kim Fournais and Lars Seier Christensen, said in a joint statement:
"We are pleased with the results for 2014 and the growth achieved which is consistent with market conditions. The inflows of new clients as well as the increase in collateral deposits are early evidence of the potential for Saxo Bank to continue its strong growth in 2015."
Saxo Bank continues to enjoy a strong capital position with a total equity of DKK 4,225 million. In November 2014, Saxo Bank further strengthened its Tier 1 capital base by issuing a DKK 334.8 million Notes listed on the Irish Stock Exchange. This helped Saxo Bank withstand the extreme market impact of the events of 15 January, 2015 when the Swiss National Bank removed the fixed floor between the Swiss franc and the euro. A number of clients ended up with insufficient margin collateral to cover their losses on their positions in Swiss franc. Saxo Bank estimates the maximum loss that the Group can incur in relation to this event to be DKK 0.7 billion on a net basis. As it reflects circumstances that have arisen after the 2014 financial year, the loss is recognised in the financial statement for 2015.
Saxo Bank Group (Saxo) is a leading Fintech specialist focused on multi-asset trading and investment and delivering ‘Banking-as-a-Service’ to wholesale clients.
For 25 years, Saxo’s mission has been to democratize investment and trading, enabling clients by facilitating their seamless access to global capital markets through technology and expertise.
As a fully licensed and regulated bank, Saxo enables its direct clients to trade multiple asset classes across global financial markets from one single margin account and across multiple devices. Additionally, Saxo provides wholesale institutional clients such as banks and brokers with multi-asset execution, prime brokerage services and trading technology, supporting the full value chain delivering Banking-as-a-Service (BaaS).
Saxo’s award winning trading platforms are available in more than 20 languages and form the technology backbone of more than 100 financial institutions worldwide.
Founded in 1992 and launching its first online trading platform in 1998, Saxo Bank was a Fintech even before the term was created. Headquartered in Copenhagen Saxo today employs more than 1500 people in financial centers around the world including London, Paris, Zurich, Dubai, Singapore, Shanghai, Hong Kong and Tokyo.