The Saxo Bank Group today (29 August) reported that to “increase focus, strengthen compliance, reduce risk, and enhance operational efficiency”, it initiated a restructuring of its distribution model in the Asia-Pacific region, considering the strategic opportunities for its offices in Hong Kong, Japan, and Australia, with the office in Shanghai “in the process of being closed”.
This led to recognition of restructuring costs of €6m in the first half of 2024, Saxo Bank said as part of its H1 2024 results, while reporting an overall adjusted net profit of €68m, compared to €50m for the same period last year, corresponding to an increase of 35%.
During 2024, the Saxo Bank Group said it rolled out a new competitive pricing structure that lowers costs for clients as well as improvements to the client experience, leading to a record number of clients and client assets, with over 1.2 million end clients and €109bn in client assets as of 30 June 2024.
Volatility across financial markets has been low in the first half of 2024 resulting in lower trading and investing activity, while the higher interest rates and positive inflow of client funding impacted the financial performance positively.
Despite the short-term negative impact of reduced pricing, total income increased slightly to €311m in the first half of 2024 and was diversified almost equally between the business areas with trader clients accounting for 34%, investor clients 34%, and institutional 32%.
Moreover, S&P upgraded Saxo Bank’s rating to A- from BBB during the first half of the year “in a testament to the Saxo Bank Group’s strong financial position”.
The Saxo Bank Group expects the full year’s adjusted net profit to be maintained in line with the previously guided range of €114 – 134m.
Kim Fournais, CEO and Founder of Saxo Bank, said: “The positive momentum we’ve experienced in the first half of the year is a strong indicator that our strategy is resonating with our clients. More than 1.2 million clients now trust Saxo with more than EUR 109.38 billion in assets. This is a result of our relentless focus on enhancing our investment platforms, products, and services, and offering very competitive pricing that empowers our growing client base to make more of their money.
“It’s also encouraging to see our clients increasingly recognising the value of diversifying their portfolios across different markets and asset classes. In these uncertain times, we remain fully focused on facilitating diversification across asset classes, making it easier and more attractive for investors to build healthy and profitable portfolios and manage their risks.
“Diversification is truly the “only free lunch” in investing – and we are here to provide the tools, product range, and insights to help our clients navigate their portfolios with confidence.”
Founded by CEO Kim Fournais in 1992, Saxo launched one of the first online trading platforms in Europe in 1998, providing professional-grade tools and easy access to global financial markets. Saxo formed its first partnership in 2001, with a partner that is still with Saxo, and has grown the Saxo Institutional business to more 400 partners today.
Today, more than 1.2 million clients with over DKK 800 billion in client assets is invested.
