Leading multi-asset trading company Saxo Bank reported a decline in earnings and net profit, followed by several other performances due to low trading activity.
Saxo Bank Group, a leading online trading specialist based in Copenhagen, released a financial report that revenue and net profit for the 12 months ending December 31, 2022, have decreased.
According to Saxo Bank's financial results report, net profit for the fiscal year 2022 was DKK DKK 711 million ($101.3 million), down about 5.8 percent over the previous year. Then, the company also marked an annual decline of around 1.5% in total revenue to DKK 4.45 billion and total equity to DKK 7.1 billion.
Another decrease was in total customer assets by 8.8%, to DKK 584 billion. Nonetheless, the figure is a record-breaking milestone for Danish brokers, taking 25 years to reach the DKK 100 billion mark and adding another DKK 490 billion to client assets in just four years.
These financial results were influenced by macroeconomic factors, such as a low equity market, which resulted in market uncertainty and hampered trading activity. On the positive side, rising interest rates contributed to an increase in the company's net funding of 4,455 million in 2022.
Despite challenging market conditions, Saxo Bank acquired more customers for the first time in its 30-year history, with more than 876,000 active accounts. This increase offset the decline from weaker trading activity.
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The Transition from the BinckBank Acquisition
In 2022, Saxo Bank achieved a critical milestone after finishing the migration of BinckBank customers to the Saxo platform of more than 400,000 clients in four different jurisdictions. In addition, the company will continue to invest at high levels in platforms, new products and services, and digitization to improve the client experience.