Saxo Bank announces 2018 results
Saxo Bank reports a record profit following the sale of its shareholding in Saxo Payments, while the number of new clients for both direct and wholesale businesses reaches new highs.
Saxo Bank Group (“The Group”) reported a positive net profit of DKK 955.8 million for 2018, a record profit for the Group, an increase of 138 per cent compared to 2017. Client collateral deposits continued to rise to DKK 112.6 billion while the operating income for the group was DKK 2.8 billion, an 8 per cent decrease compared to 2017.
Saxo Bank Group continued to strengthen its capital position with the total capital ratio for the Group reaching 35.0 per cent as of the end of 2018 compared to 22.7 per cent at the end of 2017, thus retaining a comfortable buffer.
2018 key figures at a glance (2017)
- Operating income: DKK 2.8 billion (DKK 3.0 billion)
- EBITDA (profit): DKK 1,408 million (DKK 931.6 million)
- Net profit: DKK 955.8 million (DKK 401.1 million)
- Client collateral deposits: DKK 112.6 billion (DKK 103.6 billion)
- Total equity: DKK 5.6 billion (DKK 4.6 billion)
Commenting on the results, Kim Fournais, CEO and founder of Saxo Bank, said:
- 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.
In 2018, Saxo Bank took the final steps to streamline the business to focus on the core areas of trading and investing. As part of this strategy, 2018 saw the successful sale of Saxo Privatbank, a fully licensed retail bank with branches across Denmark, and Saxo Payments, a provider of infrastructure for online cross-border payments. In line with Saxo Bank’s partnership strategy, both entities continue to leverage Saxo Bank’s technology and investment infrastructure as wholesale partners.
On December 17 2018, Saxo Bank and BinckBank announced an agreement on a recommended all-cash public offer for all BinckBank shares. Subject to the necessary approvals and shareholder acceptance, BinckBank and Saxo Bank anticipate that the Offer will close Q3 2019
Lars Andreasen has been appointed to the Audit Committee at the annual general meeting 2019. Having worked in a range of senior positions over the course of his 20+ years career with Danske Bank, Lars Andreasen is an experienced senior executive in the financial industry. Andreasen holds a Master of Science (MSc) in Business Administration and Auditing and he is a Danish State authorised public accountant.
The full report is available here: https://www.home.saxo/about-us/investor-relations
At Saxo we believe that when you invest, you unlock a new curiosity for the world around you. As a provider of multi-asset trading and investment solutions, Saxo’s purpose is to Get Curious People Invested in the World. We are committed to enabling our clients to make more of their money. Saxo was founded in Copenhagen, Denmark in 1992 with a clear vision: to make the global financial markets accessible for more people. In 1998, Saxo launched one of the first online trading platforms in Europe, providing professional-grade tools and easy access to global financial markets for anyone who wanted to invest.
Today, Saxo is an international award-winning investment firm for investors and traders who are serious about making more of their money. As a well-capitalised and profitable Fintech, Saxo is a fully licensed bank under the supervision of the Danish FSA, holding broker and banking licenses in multiple jurisdictions. As one of the earliest fintechs in the world, Saxo continues to invest heavily into our technology. Saxo’s clients and partners enjoy broad access to global capital markets across asset classes on our industry-leading platforms. Our open banking technology also powers more than 200 financial institutions as partners by boosting the investment experience they can offer their clients. Keeping our headquarters in Copenhagen, Saxo has more than 2,500 professionals in financial centres around the world including London, Singapore, Amsterdam, Hong Kong, Zurich, Dubai and Tokyo.
For more information, please visit: www.home.saxo