Saxo Bank saw clients’ collateral deposits increase by 26% to DKK 50.6 billion by the end of 2013, which is a new all-time high. This is a very positive development as clients’ funds held as collateral are the basis for future trading and investment by clients on the Bank’s platform and also serve as a very clear indication of the customer appeal of Saxo Bank’s global, multi-asset strategy.
Despite the ongoing challenging market conditions in trading, non-recurring items, divestments and write downs on non-core activities, Saxo Bank Group doubled its net profit from DKK 81 million for 2012 to DKK 162 million for 2013 and EBITDA increased by 48%:
Operating income: DKK 2,861 million (DKK 2,966 million in 2012)
EBITDA: DKK 898 million (DKK 606 million)
Profit before tax: DKK 247 million (DKK 152 million)
Net profit: DKK 162 million (DKK 81 million)
Clients’ collateral deposits: DKK 50.6 billion (DKK 40.2 billion)
Saxo Bank’s results are directly linked to clients’ trading activity. Saxo Bank sees clear indications that the quality of the multi-asset offering has a positive impact on client activity levels and retention rates. This is illustrated by the fact that more of Saxo Bank’s direct private clients who were trading FX, stocks, CFDs and futures in 2012 remained active traders in 2013. However, low market volatility and low interest rate levels continue to dampen the effect of these positive trends.
Saxo Bank Group’s total capital ratio, solvency ratio, increased from 13.5% to 16.2%.
The founders and CEOs of Saxo Bank, Kim Fournais and Lars Seier Christensen, said in a joint statement:
“We note with pleasure the significant increase in EBITDA which shows that Saxo Bank is on a solid path, focusing on the core business. At the same time, clients’ collateral deposits reached an all-time high, reaffirming the strength of our global, multi-asset offering. We will continue to focus on clients and the value chain, developing our products and platforms, not least our multi-asset social trading platform, TradingFloor.com, which enters into a new phase of its development”.
“Overall, the market situation is uncertain but Saxo Bank has a solid foundation for its operations in 2014. Our focus remains on growth, clients, efficiency, profitability and optimisation of the entire value chain. Cost control, capital and liquidity management are, as ever, ongoing themes for Saxo Bank in 2014. With a close eye on overall cost development, we will continue to invest in products and platforms. Finally, system enhancements and knowledge upgrades are a part of the Bank’s core projects.”
A copy of the Annual Report can be downloaded here