Lower trading profits translated into a modest net profit for the UK branch of Saxo Bank in 2022. According to a recently published report, the net profit shrank by nearly 16% to £10.47 million. However, the company managed to increase its customer base by 20,000 people.
Saxo Bank UK Reports Lower Revenue and Net Profit in 2022
Saxo Bank has been present in the UK since 2006, and from 2012 its operations have been managed by its subsidiary Saxo Capital Markets UK Limited, regulated by the Financial Conduct Authority (FCA ). According to the report filed with the UK's Companies House, trading profits in 2022 amounted to £24.74 million, shrinking by 20% compared to the previous year when revenues were £30.1 million.
Net operating income consequently fell from £32.1 million to £26.2 million, and operating profit stood at £10.30 million, compared to £15.56 million the previous year. This ultimately resulted in a net profit of £10.47 million, which was £12.41 million and 16% higher than in 2021.
In its report, Saxo Bank UK commented that 2022 was a year full of significant events and challenges that clearly impacted trading volumes and, as a result, realized commissions.
The data from the UK branch's report aligned with the financial results published by the entire Saxo Bank Group earlier this year. The company showed a decline of 6% in net profit, which stood at DD 711 million in 2022. However, the first half of 2023 already witnessed a profit rebound to 34% despite retail investors' continued lower trading activity.
Record Number of Clients
Returning to Saxo Bank UK, in 2022 the broker increased its customers by another 20,000, reaching a record figure of 123,000 customers who made at least one deposit on Saxo's platforms. This allowed the company to achieve total assets under management value of $1.94 billion, compared to $1.62 billion reported in 2021.
"Currently, the company offers only 'Saxo Group Legacy' products and services. The strategic plan is to enrich the offering with the full Saxo suite of services and products, including Saxo investor and wealth care, mutual funds, E-SIPPs, and a broader small caps offering," the company commented in the official filing.
A month ago, the company disclosed its metrics for August, showing a decrease in monthly forex trading volume to $112.3 billion from the prior month's $112.9 billion. The daily average volume also fell to $4.9 billion from $5.4 billion, marking a decline of 9.2 percent.
