Low volatility taking it’s toll, Saxo Bank H1 net profit down 41.3% YoY

Saxo Bank released its first half 2014 report today. Saxo Bank Group reported a net profit of DKK 156 million for the first 6 months of 2014 on revenues of DKK 1.35 billion, and clients’ collateral deposits increased by DKK 9.7 billion to a record high of DKK 60.3 billion. While revenues of DKK 1.35 billion in the latest 6 months represent an increase of 20% compared to the second half of 2013, numbers are down from the first half of 2013, when revenues came in at DKK 1.75 billion, a 22% decline and net profit stood at DKK 266 million a 41.3% drop YoY. Although, the bump in performance from H2 2013 is a positive sign.


Saxo states that total assets grew from DKK 27.7 billion as of 31 December 2013 to DKK 29.8 billion as of June 2014, an increase of 8% primarily due to the increase in deposits of DKK 2.2 billion. Furthermore, no events occurred after the reporting date having a significant impact on the financial position of the Bank or the Group.

Highlights from the first half include:

– Saxo Bank re-launched TradingFloor.com as a social trading platform, becoming the first major player in the financial industry to move into multi-asset social trading. With over 26,000 members, TradingFloor.com now attracts 300,000 unique visitors every month, up from 45,000 visitors per month one year earlier. The site plays a central role in attracting new clients to the Bank and further engaging our existing clients.

– In May, Saxo TV, their web-based business television service integrated with TradingFloor.com, celebrated its first year of operations and expanded its reporting out of London, targeting high-profile news-makers and commentators to provide a broader range of opinions and attract a wider audience.

– Increased product range including introducing new FX crosses to trade, futures spread trading, OTC FX options and stock options.

– In May 2014 launched a new office in Abu Dhabi, Saxo’s second location in the UAE.

– Evolving their retail banking offerings with Saxo-Investor

– Sponsorships with Lotus F1 Team

– Launched the FX Prime Brokerage offering coupled with a FIX API connection to ECN liquidity, cementing that the institutional business and clients are key priorities.

Outlook for rest of 2014

Saxo Bank expects the markets to remain uncertain until the recovery of the global economy and the effects of the expected roll-back of various quantitative easings become clear.

Overall, the Bank finds the market situation hard to predict, and visibility remains low.

Saxo Bank expects to continue the ongoing development of its traditional trading business. The focus remains on clients, efficiency, profitability and optimization 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, the Group will continue its investments in products and platforms. At the same time, system enhancements and knowledge upgrades are expected within the Bank’s core business areas.

To download the entire report with all the details, click here.

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