Saxo Bank Group has just released its volume report for the year 2019. The company reported a net profit of DKK 40 million, compared to DKK 963 million for 2018 incl. extraordinary items. Operating income for the Group amounted to DKK 2,611 million in 2019 compared to DKK 2,786 million in 2018, corresponding to a decrease of 6%. BinckBank N.V. is included in the reporting from 1 August 2019.
2019 key figures:
Operating income: DKK 2,611 million (down 6% YoY from DKK 2,789 million)
EBITDA (operating profit): DKK 882 million (a 37% drop from 2018‘s DKK 1,408 million)
Net profit: DKK 40 million (a 94% YoY plunge from DKK 963 million in 2018)
Total equity: DKK 7.1 billion (up 27% YoY – DKK 5.6 billion in 2018)
Total clients’ assets: DKK 375.5 billion (up 233% YoY – DKK 112.6 billion in 2018)
Total number of clients: 525,000 (up 194% YoY – 178,439 in 2018)
LeapRate reminds that in August 2019, Saxo Bank completed the acquisition of BinckBank. Later last year, in December, Saxo Bank and Geely Sweden Holdings AB announced an agreement to establish a technological joint venture to provide financial and regulatory technology solutions to financial institutions such as banks and fintechs in China.
Saxo Bank Group continued to have a strong capital position with the total capital ratio for the Group reaching 33% as of the end of 2019. The Group reported lower profit due to continued lower activity and higher investments, but also announced record number of new clients and client assets.
Kim Fournais, CEO and Founder, Saxo Bank, commented on the results:
The result for 2019 is affected by difficult market conditions during the year, with all-time low volatility across most financial markets and continued negative interest rates in many markets. At the same time, the result is negatively impacted by significant price reductions across asset classes as well as continued record-high level of investments in better platforms, products and digital services for clients and partners.
While the result is not satisfactory, it is worth noting that we have welcomed a record number of new clients in 2019 and have a significant increase in client assets to more than DKK 375 billion.
2019 was a significant year in Saxo Bank’s history as we welcomed BinckBank to the Group adding both many skilled and dedicated employees and a substantial number of clients and clients’ assets to the Group. Further, we have set up a joint venture with our shareholder Geely, to provide technology solutions to financial institutions such as banks and fintechs in the mainland Chinese market. We therefore have a very strong and unique position to continue to grow in our key markets and providing a world-class Saxo Experience to both new and existing clients.
We remain committed to our strategy and continue our investments in technology and digitalisation, while at the same time pursuing strong cost discipline.
In the beginning of 2020, volatility in financial markets has increased leading to higher activity among our clients and partners.
We present our annual result for 2019 at a difficult time for the global community and the global economy. The Corona virus continues to spread, significantly impacting the societies Saxo Bank is a part of. We naturally remain fully operational and we are taking every step necessary to continue to serve our clients and keep our employees healthy and safe.
Furthermore, we have decided to move forward payment to our vendors to help and support with liquidity in this difficult situation. Saxo Bank has a healthy capital and liquidity position, giving us the flexibility to support the societies we are a part of. We all depend on each other and we need to come together to do everything in our power to ensure we get through this defining moment in our shared history.
