Saxo Bank remains almost without profit

One of the largest suppliers of trade and investment services, the Danish group of companies Saxo Bank Group, announced on the eve of the financial results of its activities for the past 2019. Despite the decline in profits due to reduced activity and increased investment, the company boasted a record number of new customers and their assets.

Saxo Bank Group reports net profit for 2019 in the amount of 40 million Danish kroner. For comparison, in 2018, the Bank’s net profit amounted to 963 million kroner, including extraordinary items. The group’s operating income in 2019 amounted to 2,611 million kroner, with 2,786 million kroner in 2018, which implies a decrease of 6% (BinckBank N.V. indicators were included in the financial statements from August 1, 2019). Moreover, the total number of customers at the end of the year was 525,000, compared to 178,439 at the end of 2018.

Commenting on these results, Co-founder and CEO of Saxo Bank, Kim Fournais, said that the results for 2019 were affected by difficult market conditions during the year, the historical minimum of volatility in most financial markets and negative interest rates in many countries.

He also noted that the result was negatively affected by a significant reduction in prices in different asset classes, as well as maintaining a record high level of investment in improving platforms, products and digital services for customers and partners.

Although this result cannot be called satisfactory, it is worth noting that in 2019 was a record number of new customers and significantly increased client assets – to more than Danish kroner 375 billion. 

Kim Fournais added that the company would continue its strategy of investing in IT technology and digitalization, while at the same time adhering to a strict discipline of costs. At the beginning of 2020, volatility in the financial markets increased, which led to an increase in the activity of our customers and partners. 

Coronavirus roaming around the world

CEO shared the result for 2019 at a difficult time for the world community and the global economy. Coronavirus continues to spread, causing severe damage to society, of which Saxo Bank is a part.

Fournais promised to continue to work in full and take all necessary steps to serve customers and ensure the health and safety of the employees. Moreover, he announced to provide prepayments to the suppliers to help them and maintain liquidity in a problematic situation.

Saxo Bank has a good position in terms of capital and liquidity, which gives them the flexibility to support the company.