Saxo Bank Group Reports Strong H1 2023 Results Despite Market Challenges
Saxo Bank Group, the parent company of Saxo Hong Kong, has released its H1 2023 financial results, showing an impressive performance amid a challenging market environment. The bank reported an operating profit of USD 75 million, marking a substantial increase of 34% compared to USD 56 million for the same period last year.
The first six months of the year presented an uncertain macroeconomic backdrop and low market volatility, which led to reduced trading and investment activity among the bank's clients. However, this decline was offset by higher interest income.
In a strategic move to optimize its business operations and focus on core markets and clients, Saxo announced the divestment of its 50% interest in Saxo Geely Tech Holding (Saxo Fintech) in June. This divestment had a negative impact on net profit for the first half of 2023, reducing it to USD 54 million, compared to USD 43 million for the same period in the previous year. Nevertheless, the Saxo Bank Group maintains its outlook for the full year's net profit, adjusted for the divestment, in the range of USD 94-115 million.
Saxo Bank Group achieved a significant milestone by reaching 1 million end clients and managing USD 104 billion in client assets during H1 2023. This achievement was bolstered by net funding of cash and securities totaling USD 11 billion in the first half of the year.
Additionally, Saxo Bank received recognition as a Systemically Important Financial Institution (SIFI) from the Danish Financial Supervisory Authority (FSA). The bank also earned a BBB credit rating with a positive outlook from Standard & Poor's, affirming its robust capital position, business model, and commitment to prudent risk management.
Key financial figures for H1 2023 (compared to H1 2022):
1. Total income: USD 322 million (USD 309 million)
2. Operating income: USD 75 million (USD 56 million)
3. Net profit (adjusted): USD 54 million (USD 43 million)
4. Net profit: USD 41 million (USD 43 million)
5. Total client assets: USD 104 billion (USD 85 billion)
6. Total capital ratio: 31.9% (28.1%)
Kim Fournais, CEO and Founder of Saxo Bank, commented on the results, highlighting the bank's resilience and adaptability amid challenging market conditions. He emphasized the bank's commitment to enhancing its products, platforms, and services while expressing pride in reaching the milestone of 1 million end clients and USD 100 billion in client assets.
Richard Douglas, CEO of Saxo Hong Kong, highlighted the bank's transparent interest rate model, which empowers clients to earn competitive interest on uninvested cash without constraints like lock-in periods. He stressed Saxo's belief in creating mutually beneficial relationships with clients and the positive reception of their higher interest rates and lower prices.
Saxo Hong Kong's efforts to expand its offerings and capabilities were evident with the launch of SaxoWealthCare, a wealth management solution, and its membership in the Stock Exchange of Hong Kong (SEHK), enabling the bank to accelerate growth and broaden its suite of securities products.
Saxo Bank Group's strong performance and strategic initiatives reflect its commitment to delivering value to clients and achieving growth in its core markets.