Saxo Bank’s H1 2023 Profit Soars 34% despite Low Trading Activity

<p>The Danish investment bank specializing in online trading
and investment, Saxo, unveiled its report for the first half of the year,
highlighting robust financial performance amidst economic uncertainties and
market volatility. </p><p>The company's operating
profit skyrocketed to DKK 520 million, which is a remarkable increase of 34% compared to
the same period last year. The first half of 2023 brought an uncertain
macroeconomic environment and low market volatility. As a result, Saxo Bank
witnessed a decline in trading and investment activity among its clients.
However, this dip was offset by higher interest income. </p><p>Saxo Bank Defies Economic
Uncertainties </p><p>Kim Fournais, the CEO
and Founder of Saxo Bank commented: "While this year was marked by
challenging market conditions and continued geopolitical tensions, our
half-year results demonstrated resilience and adaptability in the face of
changing market dynamics. One constant, however, has been Saxo Bank's
unwavering commitment to support our clients and to continuously improving our
products, platforms, and services."</p><p>In June, Saxo Bank made
a decision to <a href="https://www.financemagnates.com/forex/saxo-bank-sells-stake-in-regtech-firm-to-majority-owner-geely-group/" target="_blank" rel="follow">divest
its interest of 50%</a> in
Saxo Geely Tech Holding, known as Saxo <a href="https://www.financemagnates.com/terms/f/fintech/">Fintech</a>. This move was aimed at
optimizing the bank's business operations and focusing more on core markets and
clients. While the divestment had a negative impact on operating profit, it
brought the adjusted net profit for H1 2023 to DKK 376 million, which is a significant
improvement from DKK 302 million for the same period last year.</p><p>During the period, Saxo
Bank achieved a milestone in its growth, reaching 1 million clients.
Additionally, the bank's total client assets surged to DKK 721 billion,
reflecting a positive trend driven by the firm's net cash and securities
amounting to DKK 79 billion in the first half of the year.</p><p>Decline in FX Trading
Volume</p><p>However, Saxo saw a <a href="https://www.financemagnates.com/forex/fx-trading-demand-on-saxo-bank-slips-in-july/" target="_blank" rel="follow">decline
in FX trading volume in July</a>.
The monthly volume slipped to $112.9 billion, which is down from $119.5 billion in the
previous month, according to a recent report by <a href="https://www.financemagnates.com/">Finance Magnates</a>. This represents a month-over-month decrease of
5.5%. In addition, its demand for FX trading
witnessed a minor dip of 2.5% when compared to the same period last year.</p><p>Saxo Bank doesn't solely
focus on forex trading. The platform offers a wide range of trading services
across various asset classes. In July, the demand for trading across these other asset
classes further experienced a decline, contributing to an overall monthly trading
volume of $371.9 billion, which is down from $391.7 billion in the previous month. </p><p>Headquartered in
Denmark, Saxo Bank operates globally with a presence in various markets. In a
recent regulatory development, the Danish Financial Supervisory Authority (FSA) <a href="https://www.financemagnates.com/cryptocurrency/denmarks-fsa-orders-saxo-bank-to-dump-crypto-holdings/" target="_blank" rel="follow">directed
the company to divest</a> its
cryptocurrency holdings, citing that the trading of digital assets for the
bank's own accounts fell outside its "lawful area of activity."</p>

This article was written by Jared Kirui at www.financemagnates.com.