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Saxo Capital Markets UK, the FCA-regulated British division of Denmark-based Saxo Bank, has today announced its financial results for the year ending December 31, 2014, reporting a profit of £4.4 million on revenues of £14.8 million.
Saxo Bank reported that its UK business performed strongly in its third year of trading, achieving total revenues for the year of £14.8 million, representing a healthy 12% increase of over the £13.2 million achieved in 2013.
The company’s profit before tax for the year 2014 amounted to £5.9 million, up substantially from the £5.3 million achieved in 2013.
During last year, Saxo Capital Markets UK embarked on a series of strategic objectives, with a priority toward growing the number of satisfied, loyal customers whilst maintaining strong corporate governance and a compliant environment.
The strategic objectives include leveraging the product and technological strengths of Saxo Bank’s proprietary platform, the development of which has been a major corporate priority for Saxo Bank recently, the firm having launched its entirely new SaxoTraderGO device neutral platform with its OpenAPI technology last week.
The company also concentrated on expanding its higher end retail client base and adapting its service model to align with this ethos, as well as having implemented ongoing enhancements to systems and in-house skill sets in order to refine its institutional service.
Saxo Bank has also simplified the trading experience through high quality client support, focused communications relevant to clients’ trading preferences, as exemplified by the recent launch of SaxoStrats, which is a series of videos streamed directly to smartphones via Twitter, in line with the company’s direction of expanding its use of social media to deliver high quality content.
Dramatic increase in assets under management
An area in which Saxo Capital Markets UK experienced significant growth during 2014 was in its assets under management, which rose from £499 million in 2013 of which £151 million was client money, to £702 million in 2014, of which £192 million was client money.
Saxo Bank attributes this growth to a 15% organic growth in client numbers and general asset price rises.
Administrative expenses for the year 2014 amounted to £9,028,718, considerably higher than the £7,638,654 reported for the full year 2013. The administrative costs for 2014 included recharged costs of £1,404,408.
The company had a significant surplus regulatory capital which was above the required amount for the duration of the year, and there have been no regulatory capital breaches during this accounting period.
As of December 31, 2014, the regulatory capital held by Saxo Capital Markets UK exceeded the stipulated level by 434%, a substantial increase over the 232% surplus in regulatory capital recorded for the year 2013.
Total regulatory capital for the year 2104 held by Saxo Capital Markets UK was £11,369,141 compared to £7.193,775 in 2013.
The after tax profit of £4,448,479 will now be added to the existing regulatory capital.