Saxo Bank, parent of the wholly-owned subsidiary Saxo Australia, has reported an adjusted net profit of USD95 million for 2023, compared to USD103 million for 2022.
Saxo’s total number of clients worldwide reached a record of more than 1.1 million in 2023, with more than USD108 billion in client assets. The organisation was positively impacted by net funding of cash and securities of USD11 billion in 2023.
The Saxo Bank Group’s net profit was adjusted for a write down of software of USD43 million (net of tax) and a negative impact of USD13 million from the divestment of the joint venture Saxo Geely Tech Holding A/S (Saxo Fintech).
The software write down followed the finalisation of the migration of BinckBank in the Netherlands, highlighting the importance of one global technology stack, while the divestment of Saxo Geely Tech Holding A/S optimised business operations and Saxo’s focus on core markets and clients.
Rising inflation and low volatility in financial markets resulted in lower trading and investing activity compared to 2022, while higher interest rates had a positive impact on financial performance. Saxo has offered – and will continue to offer – market-leading interest rates and commissions to its clients.
Taking into account the aforementioned difficult trading conditions, the result for 2023 is considered acceptable and within guidance.
Commenting on the results, Kim Fournais (pictured), Chief Executive Officer and Founder of Saxo Bank, said, “In 2023, we have made further progress in building a more competitive, resilient, and relevant Saxo. A key factor in attracting new clients and increasing client assets was the introduction of our innovative interest rate model, allowing clients to earn leading market interest rates on their uninvested cash without restrictions such as lock-up periods.
“Saxo Bank was also appointed a Systemically Important Financial Institution (SIFI) in Denmark. It is a responsibility we embrace with humility and determination, and it underlines our commitment to being a trustworthy, prudent, and compliant partner to our clients and partners, as well as the societies in which we operate.
Fournais concluded, “Saxo’s strategic focus remains unchanged, with a continued emphasis on growing the number of clients and client assets, and on enhancing the product and platform offering to the benefit of our clients and core markets. At the beginning of 2024, we announced significant price cuts across markets to improve competitiveness, empower investors to make more of their returns, and simplify diversification among different asset classes.”
