Good results from Saxo Bank

Copenhagen - With net profit of DKK 618 million, the investment specialist stays on the course from the previous record year.

Saxo Bank’s operating income increased 6% in 2011 to reach DKK 3.53 billion, compared to DKK 3.34 billion in 2010. The Bank continued to invest in developing the business which meant that staff costs and administrative expenses increased 12%. Thus, net profit was DKK 618 million, down 4% from the previous record year. EBITDA of DKK 1.16 billion increased 4% compared to 2010.

Clients’ collateral deposits in Saxo Bank’s trading business increased 26% to reach DKK 26.7 billion as of 31 December 2011. Including clients’ collateral deposits relating to the trading platform offered by Saxo Bank’s retail bank, the increase was 13% from DKK 31.3 billion as of 31 December 2010 to DKK 35.3 billion as of 31 December 2011. Total assets under management in Saxo Bank’s asset management business increased 6% from DKK 31.2 billion as of 31 December 2010 to DKK 33.2 billion as of 31 December 2011.

The founders and CEOs of Saxo Bank, Kim Fournais and Lars Seier Christensen, said in a joint statement:

“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”.

In august, 2011, Saxo Bank announced that TPG Capital, one of the world’s leading investment firms, would become a major shareholder in Saxo Bank. In mid-December, all supervisory authorities’ approvals were obtained. TPG Capital has acquired a 30% stake in Saxo Bank. The founders of Saxo Bank maintain majority ownership of the Bank. Fournais Holding A/S and Lars Seier Christensen Holding A/S own 29.95% of Saxo Bank each. The remaining shares are mainly held by a number of current and former employees of the Bank.