Saxo Bank looks to the future with the strength of a comfortable capital buffer as collateral deposits reach new highs
Saxo Bank Group, in line with its guidance following the unexpected surge in the value of the Swiss franc in January 2015, has reported a net loss of DKK 485 million for the first six months of 2015. During the same period, clients’ collateral deposits continued to rise, increasing by DKK 7.8 billion to reach a record high of DKK 76 billion by the end of the first half of 2015.
The decision by the Swiss National Bank to remove the fixed floor between the Swiss franc and the euro on 15 January 2015 has adversely affected the result for the period. A number of the Group’s clients ended up with insufficient margin collateral to cover their losses on positions in the Swiss franc and any unsettled negative balances as of the end of the period have been fully provided for in the Group’s first half result. The net loss for the Group related to the Swiss franc event stands at DKK 0.7 billion and has been included in full in the results for the period.
The Group has following the Swiss event in several aspects been strengthened by restoring the capital buffers to comfortable levels and by having launched the new multi-asset trading platform SaxoTraderGO. The platform is built from the ground up with a distinct focus on customer usability and is designed to be easy and intuitive to operate across all devices.
- Operating income: DKK 751.5 million (DKK 1,347.2 million in H1 2014)
- EBITDA: DKK -297 million (DKK 448.3 million in H1 2014)
- Profit before tax: DKK -592.5 million (DKK 222.2 million in H1 2014)
- Net profit: DKK -484.6 million (DKK 156.4 million in H1 2014)
- Clients' collateral deposits: DKK 76,007 million (DKK 60,346 million in H1 2014)
- Total equity: DKK 4,095.7 million (DKK 3,650.8 million in H1 2014)
The total capital ratio for the Group stood at 19.4% by the end of the period compared to 19.7% at the end of 2014 as new capital instruments of DKK 565 million have been issued in April 2015.
The founders and co-CEOs of Saxo Bank, Kim Fournais and Lars Seier Christensen, said in a joint statement:
“It was a challenging start to the year but we have come through the first half year even stronger and are looking to the future with drive and ambition. We see Saxo Bank as the preferred partner for clients and counterparts and with our forward-looking technology we will continuously pursue growth opportunities in the market to leverage these strengths.”
Read the full Interim Report 2015 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