Danish brokerage Saxo Bank is reporting sharply higher net profits for the first half of 2017. The company continues attracting record deposits, despite lower volatility across financial markets.
For the first six months of 2017, Saxo Bank’s revenues increased to $248 million (DKK1,557.6 million). The figure is an increase of almost 7 percent when compared to the same period last year.
we will continue to invest in and prioritize the development of our technology
Saxo Bank’s net profits rose sharply to $36.6 million (DKK226 million), eclipsing 2016’s results with a rise of 45 percent. Clients’ collateral deposits have continued marking record highs, reaching $15.7 billion.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to $79.3 million (DKK495.9 million). The number is higher by 7 percent when compared to the same period a year.
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Commenting on the company’s results, the CEO and co-founder of Saxo Bank, Kim Fournais, said: “The results for the first half of 2017 underline we are on the right track, but we will continue to invest in and prioritize the development of our technology. Further digitization will ensure that we remain at the forefront of the development securing a best-in-class digital journey for our clients.”
The company has successfully been rolling out various added value services to its SaxoTraderGO platform, where clients have access to a variety of tools to analyze markets in depth.
The firm’s ongoing efforts to bring further technological enhancements to its clients has been a key driver of growth throughout the past couple of years.
As of the end of June 2017, Saxo Bank’s total capital ratio is 20.0 percent. The number is higher than at the end of 2016, when it was reported at 19.5 percent.
Back in May this year, Saxo Bank announced that one of the company’s co-founders, Lars Seier Christiansen, had sold off his stake to a Chinese investor. Billionaire Li Shufu is the chairman and major shareholder of the Hong Kong-based subsidiary of the private company that bought the stake, Zhejiang Geely Holding Group Co.
Zhejiang Geely Holding Group Co. made rounds worldwide after acquiring Volvo Cars in 2010 and the London Taxi Company.
No financial details on the transaction have been provided by the companies involved, but Finance Magnates estimates the figure to be between $350 and $400 million. The transaction is expected to be closed in the fourth quarter of 2017.