Saxo Bank announces H1 2022 results
- The Saxo Bank Group reached a new record of more than 874,000 clients despite challenging market conditions in the first half of the year
The Saxo Bank Group (the Group) reported a net profit of DKK 302 million for the first six months of 2022, compared to DKK 512 million for the same period last year. Total income for the Saxo Bank Group amounted to DKK 2,145 million for the first six months of 2022 compared to DKK 2,435 million for the same period last year.Despite a decrease in trading and market activity, the net inflow of new clients continued in the first half of the year, which brought the total number of clients to 874,000 as of 30 June 2022, which is up from 790,000 at the same point last year. The total client assets still decreased to DKK 591 billion compared to DKK 595 billion last year, mainly driven by the decline in the equity market but partly offset by positive net funding from clients.
The results are not satisfactory and affected by difficult market conditions during the first half of 2022. Despite volatility in financial markets, clients’ trading activity was lower in the first half of 2022 compared to the same period last year. At the same time, the cost level remained almost unchanged, not least driven by the postponement of the completion of the BinckBank migration, which has added cost and complexity in running two parallel infrastructures.
H1 2022 key financial figures at a glance (H1 2021)
• Total income: DKK 2,145 million (DKK 2,435 million H1 2021)
• Net profit: DKK 302 million (DKK 512 million H1 2021)
• Total client assets: DKK 591 billion (DKK 595 billion as of 30 June 2021)
• Total equity: DKK 7,021 million (DKK 7,156 million as of 30 June 2021)
Commenting on the results, Kim Fournais, CEO and Founder of Saxo Bank, said:
• The results are not satisfactory and affected by difficult market conditions during the first half of 2022. Despite volatility in financial markets, trading activity was lower than the same period last year. That said, we see it as a testament to the strength of our platforms that we have continued the growth in number of new trading clients, where we have reached a fresh record of 874.000 clients as of 30 June.
• The challenging market conditions with a negative trend in the global equity markets, high inflation, and increasing interest rates underlines the importance of supporting our growing client base with inspiring and educational content – not least within risk management as we saw the dramatic end to an almost decade-long bull market. We have for a long time communicated actively about the risk of much higher levels of inflation and the negative implications of the largest financial experiment – negative rates and quantitative easing – which is now coming to an end.
• Our strategic focus remains unchanged as we maintain our dedication to rolling out new relevant products and finalising the migration of BinckBank. However, given the current market conditions, actions have been initiated to adjust the cost structure to the lower activity level in the market.
Financial Outlook for 2022
The Saxo Bank Group operates in global financial markets and income generation is subject to volatility within the currency, equity, and commodity markets, as well as fluctuating interest rates.
The first six months of 2022 have been characterised by challenging market conditions for our clients, not least with a negative trend in the global equity markets, high inflation, and increasing interest rates. This has led to a risk-off sentiment and a lower trading activity especially among our Investor clients. However, we have also seen some income resilience from both the trader commercial area, driven by performance in the first quarter, as well as higher return from the liquidity portfolio following the increasing yield curves.
Our strategic focus remains unchanged with a continued emphasis on rolling out new products and finalising the migration of BinckBank. However, given the current market conditions, actions have been initiated to adjust the cost structure to the lower activity level.
Nonetheless, as a continued low level of trading activity will result in lower revenue generation through the remainder of the year, and the implemented actions on the cost side will only mitigate the adverse effects of the market situation, the Saxo Bank Group hereby specifies the full-year 2022 guidance to a level around DKK 600 million Net Profit, the low end of the previously guided Net Profit range.
You can read the full H1 2022 report here: Investor relations
Saxo Bank is a leading Fintech specialist that connects people to investment opportunities in global capital markets. As a provider of multi-asset trading and investment, Saxo Bank’s vision is to enable people to fulfil their financial aspirations and make an impact. Saxo’s user-friendly and personalised platform experience gives investors exactly what they need, when they need it, no matter if they want to actively trade global markets or invest into their future.
Founded in 1992, Saxo Bank was one of the first financial institutions to develop an online trading platform that provided private investors with the same tools and market access as professional traders, large institutions, and fund managers. Saxo combines an agile fintech mindset with close to 30 years of experience and track record in global capital markets to deliver a state-of-the-art experience to clients. The Saxo Bank Group holds four banking licenses and is well regulated globally. Saxo offers clients around the world broad access to global capital markets across asset classes, where they can trade more than 60,000 instruments in over 26 languages from one single margin account. The Saxo Bank Group also powers more than 200 financial institutions as partners by boosting the investment experience they can offer their clients via its open banking technology.
Headquartered in Copenhagen, Saxo Bank’s client assets total more than 85 bn USD and the company has more than 2,500 financial and technology professionals in financial centers around the world including London, Singapore, Amsterdam, Shanghai, Hong Kong, Paris, Zurich, Dubai and Tokyo. For more information, please visit: http://www.home.saxo.