Saxo Bank Reports 35% Growth in H1 2024, Driven by Strong Client Engagement and Strategic Initiatives

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Saxo Bank Reports 35% Growth in H1 2024, Driven by Strong Client Engagement and Strategic Initiatives

Saxo Bank Group has reported a robust financial performance for the first half of 2024, achieving a 35% increase in adjusted net profit, amounting to USD 76 million, compared to USD 56 million in the same period last year.

The group's success is attributed to the introduction of a new competitive pricing structure and enhancements to the client experience, which have collectively attracted a record number of clients. As of June 30, 2024, Saxo Bank boasts over 1.2 million clients and USD 122 billion in client assets, marking significant milestones in its growth trajectory.

Despite lower trading and investing activity due to subdued market volatility, Saxo Bank's higher interest rates and positive inflows of client funding contributed positively to its financial results. Total income for the first half of 2024 increased slightly to USD 347 million, with income distribution almost equally balanced among its key business areas: 34% from trader clients, 34% from investor clients, and 32% from institutional clients.

In a significant recognition of its financial strength, S&P upgraded Saxo Bank’s credit rating from BBB to A- during the first half of the year.

Saxo Bank also undertook a strategic restructuring of its distribution model in the Asia-Pacific region, focusing on its offices in Hong Kong, Japan, and Australia, while closing its Shanghai office. This restructuring resulted in costs of USD 7 million in the first half of 2024.

Looking ahead, Saxo Bank anticipates that its full-year adjusted net profit will remain within the previously guided range of USD 127-150 million.

H1 2024 Key Financial Figures (H1 2023):

Total income: USD 347 million (USD 336 million)
Net profit (adjusted): USD 76 million (USD 56 million)
Net profit: USD 69 million (USD 42 million)
Total client assets: USD 122 billion (USD 108 billion)
Total capital ratio: 28% (31.9%)

Commenting on the results, Kim Fournais, CEO and Founder of Saxo Bank, stated, "The positive momentum we’ve experienced in the first half of the year is a strong indicator that our strategy is resonating with our clients. More than 1.2 million clients now trust Saxo with over USD 122 billion in assets. This success is a testament to our commitment to enhancing our platforms, products, and services while offering competitive pricing that empowers our clients to make the most of their investments."

Fournais also highlighted the importance of diversification, particularly in uncertain times, stating, "Diversification is truly the 'only free lunch' in investing, and we are here to provide the tools, product range, and insights to help our clients navigate their portfolios with confidence."