Today Saxo Bank Group publishes its 2015 full year results. In line with its guidance following the unexpected surge in the value of the Swiss franc in Janua...
Today Saxo Bank Group publishes its 2015 full year results. In line with its guidance following the unexpected surge in the value of the Swiss franc in January 2015 the bank reported a net loss of DKK 645 million for the year ending 31 December 2015 compared to a net profit of DKK 381 million in 2014. Operating income was DKK 2.1 billion in 2015 compared to DKK 3.0 billion in 2014. Client collateral continued to rise in 2015 seeing an increase of DKK 9.4 billion to DKK 77.6 billion.
The Bank’s capital position is strong with a Common Equity Tier 1 ratio of 14.8 percent, a Tier 1 capital ratio of 17.4 percent and Total capital ratio of 20.7 percent as of 31 December 2015. The Common Equity Tier 1 buffer was DKK 0.8 billion corresponding to 6.1 percent of the Risk Exposure Amounts.
By the end of 2015 client’s collateral deposits had increased by DKK 9.4 billion to DKK 77.6 billion, which is a new all-time high and a sign of trust and confidence in the Bank.
The earnings were adversely affected by the Swiss National Bank’s decision to remove the euro peg for the Swiss franc which resulted in a number of Saxo Bank clients having insufficient margin collateral to cover their losses. This accounted for a net loss of approximately DKK 0.7 billion included in the results for the year. However, the process of collecting outstanding balances from clients is ongoing and will continue into 2016 which is expected to have a positive impact on the Bank’s future results.
Kim Fournais, CEO, Saxo Bank, said: “The financial results reflect a difficult operating environment for our industry in 2015 and were heavily affected by the Swiss events of January 2015. This coupled with uncertainty around the global economy has unsurprisingly hindered our operating revenues in 2015. At the same time, we have continued to strengthen our capital position and build on the foundations for earnings recovery when market conditions improve.
"Despite the difficult environment, our strategy of diversification of revenues and investment in technology is validated in the record client inflows we have seen in 2015. We are particularly pleased with the successful launch of the SaxoTraderGO platform."
During 2015, Saxo Bank continued to enhance its platforms and product offering with the launch of SaxoTraderGO in May 2015 aimed at capturing the growing mobile trading market. The bank also continued to be the outsourced provider of choice for banks and brokers looking to upgrade their trading technology.
2015 also saw the bank's continued foray into the fintech space, with the launch of its fully digital investment solution, SaxoSelect in January 2016, targeting long-term investors.
Key figures at a glance
- Operating income: DKK 2.1 billion (DKK 3.0 billion in 2014)
- EBITDA*: (loss) DKK 109.4 million (DKK 1,099 million (profit) 2014)
- Net profit**: (loss) DKK 645 million (DKK 381 (profit) in 2014)
- Clients' collateral deposits: DKK 77.6 billion (DKK 68.2 billion in 2014)
- Total equity: DKK 3.9 billion (DKK 4.2 billion in 2014)
* EBITDA adjusted for Swiss event and other one-off’s was DKK 880 million in 2015 compared to DKK 1.1 billion in 2014
** Net profit adjusted for Swiss event and other one-off’s was DKK 304 million in 2015 compared to DKK 505 million in 2014.
In 2015 Saxo Bank welcomed CarVal Investors (2.4 percent) and Sinar Mas Group (9.9 percent) as new investors valuing Saxo Bank at 9.6 billion DKK. Co-founder Lars Seier Christensen stepped down as co-CEO December 31 2015 and co-founder Kim Fournais continues as sole CEO.