https://ift.tt/xXLUaFJ Bank Shows Growth in Client Count While Profits Remain Marginal

The annual financial reports for the Denmark-based Saxo Bank came in earlier this week. While the bank scored less exceptionally in terms of profits, the phenomenal growth in client count makes up for the moderate performance. Compared to the previous year’s revenue of 750 million Danish Kroner, the bank accumulated revenue of 755 million DKK in the last year. Unfortunately for Saxo, the difference in the year-over-year number failed to even reach a double-digit percentage and stands at less than 5%. 

Saxo bank is one of the largest banking networks in Denmark. This investment-based bank was founded in 1992 and officially changed its name to Saxo in the early 00s. Saxo is also a regulated broker for investment in all the branches of the financial market with licenses from the United Kingdom, France, Switzerland, Singapore, Italy, Australia, and Japan. Now, with its business reaching out to the residents of nearly 170 countries, Saxo offers investment options for more than 35,000 assets in Forex, futures, CFDs, and mutual funds. The bank has also announced the acceptance of crypto pairs for investment through exchange-traded products. Many advanced traders and professionals with well-funded accounts find Saxo Capital Markets to be a great option. Account profitability could be boosted through extensive and thorough research facilities, an API interface, and lower fees (high-tier accounts). Read this well-researched and comprehensive review of Saxo Bank to learn about your investment options.

The 4.6% growth puts the entire revenue for the bank at DKK 4.23 billion. Saxo Bank’s EBITDA for the last year is reported to be at DKK 1.62 billion. On the other hand, the equity of the firm sloped to DKK 7.2 billion from the previous year’s DKK 7.4 billion. The numbers from the last year’s financial report, however, did not show any signs of concern for the bank. According to founder and CEO Kim Fornais, the performance of the bank has been satisfactory despite being moderate.

But profit is not where Saxo Bank’s real score was last year. The bank’s client-centric model has helped it grow the client count significantly. According to the report, the number of clients that got on onboard Saxo Bank goes well over 250,000 in the last year. Thanks to such a surge, the number of clients in the trading platform currently stays at 820,000. Moreover, Saxo Bank’s acquisition of BinckBank in 2019 will soon expose the trading platform to 400,000 direct clients from neighboring countries. BlinckBank’s migration to Saxo is expected to be completed by the end of 2022.

Another area where Saxo Bank posted huge growth would be the total asset held by the clients. The number that used to lurk in the DKK 400 million range in 2020 surged to the DKK 650 million range in just a year. The reason behind this rise is said to be the sudden jump in the number of clients. According to Kim Fornais, the bank was faced with a huge flow of customers in the first quarter of the last year. This inpouring helped the bank in terms of both “growth and consolidation,” he added.