Saxo Bank net profit down on heavy corporate investment
Danish specialist bank Saxo Bank has reported another year of rising operating income, but also faster rising costs that caused a 4% drop in net profit to DKK618m (€83m).
Operating income was 6% higher at DKK3.53bn as at 31 December 2011 compared to DKK3.34bn in 2010. However, costs associated with staff and administration rose by 12%, hence the lower net profit.
Collateral deposits in Saxo Bank’s trading business increased 26% to reach DKK26.7bn. Including the company’s retail operations, total client deposits hit DKK35.3bn.
Total assets under management in Saxo Bank’s asset management business increased 6% to DKK33.2bn (€4.47bn).
Joint founders and CEOs of Saxo Bank, Kim Fournais and Lars Seier Christensen, said: “The general market situation has reduced investors’ risk appetite and put a dampener on capital market activities. Therefore, we are satisfied with this year’s results, which confirm the viability of Saxo Bank’s business model.”
“Our response to the challenging market situation has been to focus on business growth through geographical expansion and continued product and platform enhancement. The strategic direction of Saxo Bank aims at broadening and diversifying the product and service offerings to reach a broader international client audience. This goes hand in hand with the ambition to tailor offerings directly to the needs of the clients. At the same time, we are proud to be taking an active role in the effort to bringing greater market and product transparency to the online financial services industry.”