Saxo Bank, the Denmark-headquartered brokerage, ended 2023 with a net profit of DKK 260 million, a decrease from the previous year’s DKK 711 million. The latest adjusted net profit amounted to DKK 653 million, marking an 8.1 percent decline.

Revenue Rise, but Profit Drop

The profit was generated on an operating income of DKK 4.48 billion, which increased from DKK 4.45 billion in the previous year.

Justifying the drop in the profits, Saxo Bank highlighted that the realized net profit of DKK 653 million was “adjusted for a write-down of software of DKK 299 million, net tax, and a negative impact of DKK 94 million from the divestment of the joint venture Saxo Geely Tech Holding A/S (Saxo Fintech).”

The write-down of the software followed the finalization of the migration of BinckBank, which the brokerage acquired in 2019.

Strong Client Metrics

In the first half of 2023, the Danish broker's operating profit came in at DKK 520 million, a jump of 34 percent year-over-year. The brokerage witnessed strong client metrics last year as the total client assets jumped to DKK 745 billion from DKK 584 billion. The total number of clients at the end of the year reached more than 1.15 million, increasing from 1.08 million in the previous year.

The company's total equity last year dropped to DKK 6.4 billion from DKK 7.1 billion. Its capital ratio also changed to 32 percent from 31 percent. “In 2023, we have made further progress in building a more competitive, resilient, and relevant Saxo,” said Kim Fournais, the CEO and Founder of Saxo Bank. “We reached a record of more than 1.1 million end clients with assets exceeding DKK 745 billion."

“A key factor in attracting new clients and increasing the client assets was the introduction of our innovative interest rate model. This model allows clients to earn leading market interest rates on their uninvested cash without the usual restrictions, like lock-up periods.”

He further highlighted that the “strategic focus” of the broker will remain unchanged and be around “growing the number of clients and client assets, and on enhancing the product and platform offering to the benefit of our clients as well as focusing on our core markets.”