Saxo Capital Markets UK Posts a Small Loss in 2015 Due to SNB Black Swan

The highest paid director of the London branch of Saxo Bank received over £1 million in compensation.

Saxo Capital Markets UK has just filed its annual Companies House report that shows the full accounts of the brokerage for 2015. The firm registered a 7.4 percent annual increase in trading revenues to £14.3 million ($17.4 million). Last year the company’s administrative expenses totaled £15.5 million ($18.9 million) which was higher by 71 percent when compared to the previous year.

Looking at the details, the company posted a loss of £7 million as the Swiss National Bank (SNB) removed the floor from the EUR/CHF exchange rate on January 15th 2015. As a result, the company recorded a loss of £810,484, which compares to a profit of £5.9 million. The after tax return on assets was -1.5 percent, with the figure rising to +11.8 percent if we take out the exceptional costs around the SNB.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

The company’s assets under management have increased to £702 million, which includes £192 million client money. Saxo Capital Markets UK registered client growth totaling 14 percent throughout 2015. The company remained well capitalized with the net capital requirements of the firm exceeding FCA’s Pillar 1 capital requirement by 640 percent, totaling to £15,817,620.

Suggested articles

Separating Yourself From the Pack in a Mature FX IndustryGo to article >>

Total revenues of the company have amounted to £21.11 million with fees and commissions accounting for £12.68 million, CFDs and other interests totaling £1.58 million and costs recharged to Saxo Bank’s group of companies entities totaling to £6.8 million.

The company spent about £9.8 million on staff costs, which is an increase of 158 per cent when compared to 2014, signifying that Saxo Markets UK has substantially committed to further expanding its operations. Looking at the total employee count, the firm has increased the total number of employees in 2015 to 69 from 54 at the end of the previous year. The company’s highest paid director received just one £1 million.

During 2015, the Saxo Markets UK has received just over £6.5 million in commissions from the company’s parent Saxo Bank A/S, which is higher by 23.6 percent when compared to 2014. For the same period Saxo Bank A/S charged Saxo Capital Markets UK about £2.2 million in fees, which is about flat year-on-year.

Got a news tip? Let Us Know