Saxo Bank saw continued growth in clients' collateral deposits and assets under management during Q2 despite of the low overall trader and investor activity level in the first half of 2012. A significant number of new on-boarded clients increased the collateral deposits in Saxo Bank's trading business from DKK 26.7 billion as of 31 December 2011 to DKK 30 billion at the end of June 2012.
Total assets under management in Saxo Bank's asset management business increased from DKK 33.2 billion as of 31 December 2011 to DKK 35.7 billion as of 30 June 2012. Including collateral deposits in Saxo Privatbank, the Saxo Bank Group's total client collateral deposits and asset under management increased from DKK 68.4 billion as of 31 December 2011 to DKK 74.4 billion as of 30 June 2012.
After a pick-up in the third quarter of 2011, volumes went down in the fourth quarter and remained at a relatively low level in the first six months of 2012. Market volatility in most asset classes remained subdued at levels not seen since 2006 and 2008. Despite this slowdown in market activity, Saxo Bank decided to increase investments in products and services with 30 per cent compared to the same period last year.
Investments in new products included an enhanced CFD and equity offering and new Futures contracts as well as a new online wealth management platform. The award-winning SaxoTrader platform also received a number of notable enhancements particularly for the mobile trading arena. Saxo Bank additionally launched its SaxoTrader app for iPhone and Android. Finally, Saxo Bank continued its geographical expansion with new offices in Australia, South Africa and Cyprus. Saxo Bank is now present in 21 countries.
As a result of the low level of market activity that prevailed through the first half of 2012, Saxo Bank's net profit for the first six months of 2012 was DKK 44 million.
- Operating income: DKK 1,417 million (DKK 1,769 million in H1 2011)
- Profit before tax: DKK 76 million (DKK 474 million)
- Net profit: DKK 44 million (DKK 346 million)
- Clients' collateral deposits: DKK 30,223 million (DKK 23,285 million)
- Assets under management: DKK 35,694 million (DKK 32,357 million)
- EBITDA: DKK 267 million (DKK 608 million)
In a joint statement, Kim Fournais and Lars Seier Christensen, co-CEOs and founders of Saxo Bank, said:
"The first six months of 2012 was an unusual period for the financial markets. The unresolved European debt-crisis, low growth and the ever-changing regulatory environment impacted investors' appetite for risk and market involvement. This influenced our half-year results significantly. Although we are not satisfied with these results, we remain optimistic. The current subdued level of market activity is not a permanent situation and during the past six months, Saxo Bank has not only invested heavily in products and services, but has continued to grow clients' collateral deposits at a record pace. This is a good foundation for future business and profits."
Media Enquiries
Sharon Pereira: sharon@matrixdubai.com
Bardees Badr: bardees@matrixdubai.com
About Saxo Bank
Saxo Bank is a leading online trading and investment specialist. A fully licensed and regulated European bank, Saxo Bank enables private investors and institutional clients to trade FX, CFDs, ETFs, Stocks, Futures, Options and other derivatives via three specialised and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application available in over 20 languages. Saxo Bank also offers professional portfolio and fund management through Saxo Asset Management who accommodates high-net worth private clients and institutional investors and provides banking services and advice to retail clients through Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia.
© Press Release 2012
