Saxo Bank UK's Profit Dips despite Record Client Numbers

<p>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.</p><p>Saxo Bank UK Reports Lower
Revenue and Net Profit in 2022</p><p>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
<a href="https://www.financemagnates.com/terms/f/financial-conduct-authority-fca/">Financial Conduct Authority (FCA</a>). 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.</p><p>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.</p><blockquote><p lang="en" dir="ltr"><a href="https://twitter.com/saxobank?ref_src=twsrc%5Etfw">@saxobank</a> branch in the UK posted 2022 results. Revenue and net income lower, but a record-breaking number of clients <a href="https://t.co/aQW5cIbOfK">pic.twitter.com/aQW5cIbOfK</a></p>— Damian Chmiel (@ChmielDk) <a href="https://twitter.com/ChmielDk/status/1711651321160564912?ref_src=twsrc%5Etfw">October 10, 2023</a></blockquote><p>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. </p><p>The data
from the UK branch's report aligned with the financial results published by the
entire <a href="https://www.financemagnates.com/tag/saxo-bank/" target="_blank" rel="follow">Saxo Bank Group</a> earlier this year. The company <a href="https://www.financemagnates.com/institutional-forex/lower-trading-bites-6-into-saxo-banks-profit-in-2022/" target="_blank" rel="follow">showed a decline of 6%</a> in net profit, which stood at DD 711 million in 2022. However, the first half
of 2023 already <a href="https://www.financemagnates.com/institutional-forex/saxo-banks-h1-2023-profit-soars-34-despite-low-trading-activity/" target="_blank" rel="follow">witnessed a profit rebound to 34%</a> despite retail investors' continued lower trading activity.</p><p>Record Number of Clients</p><p>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.</p><p>"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.</p><p>A month ago, the company disclosed its metrics for August, showing a decrease in monthly forex trading volume <a href="https://www.financemagnates.com/forex/summer-lull-hits-saxo-fx-volume-in-august-comes-flat/" target="_blank" rel="follow">to $112.3 billion</a> 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.</p>

This article was written by Damian Chmiel at www.financemagnates.com.