The UK
subsidiary of Saxo Bank reported a 32% decline in annual profits for 2024
despite attracting thousands of new clients through aggressive pricing cuts,
according to the financial statement published this week.
Saxo Capital Markets UK
Posts £7.6M Profit, Down From £11.2M
Saxo Capital Markets
UK Limited posted profits of £7.6 million for the year ended December 31, down
from £11.2 million in 2023. Profit before tax fell to £10.4 million from
£14.8 million the previous year.
Trading
revenue dropped £3.5 million to £24.4 million, which the company attributed to
reduced commission fees and lower market volatility throughout most of 2024.
The firm cut prices on stocks, ETFs, options and futures while eliminating
inactivity fees and minimum custody charges for retail clients.
"Lower
pricing combined with low market volatility
Volatility
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad
Read this Term throughout most of 2024 resulted in
a drop in the trading revenue for the company of £3.7m," the annual report
stated.
The pricing
strategy paid off in client acquisition terms. Saxo UK gained 3,600 newly
trading clients in 2024, representing a 79% jump from 2,000 new clients in
2023. Client assets under management grew to £2.63 billion from £2.30 billion.
Key Performance Indicators Summary
Key Performance Indicators | 2024 | 2023 | Change |
Trading Revenue (£'000) | 24,444 | 27,973 | -12.6% |
Administrative Expenses (£'000) | 16,011 | 16,071 | -0.4% |
Profit Before Tax (£'000) | 10,398 | 14,811 | -29.8% |
Profit
for the year (£'000) | 7,641 | 11,228 | -31.9% |
Shareholders' Equity (£'000) | 62,425 | 66,064 | -5.5% |
Return
on Equity Before Tax (%) | 17% | 22% | -5pp |
Client Money Requirement (£'000) | 467,731 | 431,411 | +8.4% |
Client
Assets under Management (£'000) | 2,626,894 | 2,302,919 | +14.1% |
Tier 1 Capital (£'000) | 54,394 | 66,153 | -17.8% |
Cost Income Ratio (%) | 66% | 57% | +9pp |
Source: Companies House, Saxo Capital Markets UK Limited
Revenue Mix Shifts
The
company's revenue breakdown showed fees and commission income fell to £15.2
million from £19.6 million in 2023. However, net income from client deposits
increased to £10.2 million from £9.1 million, reflecting higher interest rates
during the period.
Shareholders'
equity declined to £62.4 million from £66.1 million, partly due to an £11.3
million dividend payment during the year, up from £10 million in 2023.
Administrative
expenses remained relatively flat at £16.0 million compared to £16.1 million in
2023, suggesting the company maintained cost discipline while investing in
client acquisition.
In April
this year, Saxo
UK introduced a new Flexible ISA after experiencing a sixfold increase in
demand for its Stocks and Shares ISA in early 2025.
Market Challenges
Saxo UK
operates in an increasingly competitive online trading
Online Trading
Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone
Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone
Read this Term market where firms
compete heavily on pricing. The company acknowledged that "uncertain or unfavorable
macroeconomic or geopolitical conditions can impact UK’s operations negatively
or cause demand for its products and services to decline."
The firm
maintained a strong capital position with regulatory capital of £54.7 million
against a requirement of £18 million. Its cost-to-income ratio rose to 66% from
57% in 2023, reflecting the revenue pressures from pricing competition.
Looking
ahead, management said heightened market activity from recent macroeconomic and
geopolitical events resulted in increased client trading activity in the first
quarter of 2025, which could benefit revenues.
In March
this year, Saxo Bank UK’s long-serving Chairman, Richard
Balarkas, announced his departure after 10 years with the company.
The UK
subsidiary of Saxo Bank reported a 32% decline in annual profits for 2024
despite attracting thousands of new clients through aggressive pricing cuts,
according to the financial statement published this week.
Saxo Capital Markets UK
Posts £7.6M Profit, Down From £11.2M
Saxo Capital Markets
UK Limited posted profits of £7.6 million for the year ended December 31, down
from £11.2 million in 2023. Profit before tax fell to £10.4 million from
£14.8 million the previous year.
Trading
revenue dropped £3.5 million to £24.4 million, which the company attributed to
reduced commission fees and lower market volatility throughout most of 2024.
The firm cut prices on stocks, ETFs, options and futures while eliminating
inactivity fees and minimum custody charges for retail clients.
"Lower
pricing combined with low market volatility
Volatility
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad
In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad
Read this Term throughout most of 2024 resulted in
a drop in the trading revenue for the company of £3.7m," the annual report
stated.
The pricing
strategy paid off in client acquisition terms. Saxo UK gained 3,600 newly
trading clients in 2024, representing a 79% jump from 2,000 new clients in
2023. Client assets under management grew to £2.63 billion from £2.30 billion.
Key Performance Indicators Summary
Key Performance Indicators | 2024 | 2023 | Change |
Trading Revenue (£'000) | 24,444 | 27,973 | -12.6% |
Administrative Expenses (£'000) | 16,011 | 16,071 | -0.4% |
Profit Before Tax (£'000) | 10,398 | 14,811 | -29.8% |
Profit
for the year (£'000) | 7,641 | 11,228 | -31.9% |
Shareholders' Equity (£'000) | 62,425 | 66,064 | -5.5% |
Return
on Equity Before Tax (%) | 17% | 22% | -5pp |
Client Money Requirement (£'000) | 467,731 | 431,411 | +8.4% |
Client
Assets under Management (£'000) | 2,626,894 | 2,302,919 | +14.1% |
Tier 1 Capital (£'000) | 54,394 | 66,153 | -17.8% |
Cost Income Ratio (%) | 66% | 57% | +9pp |
Source: Companies House, Saxo Capital Markets UK Limited
Revenue Mix Shifts
The
company's revenue breakdown showed fees and commission income fell to £15.2
million from £19.6 million in 2023. However, net income from client deposits
increased to £10.2 million from £9.1 million, reflecting higher interest rates
during the period.
Shareholders'
equity declined to £62.4 million from £66.1 million, partly due to an £11.3
million dividend payment during the year, up from £10 million in 2023.
Administrative
expenses remained relatively flat at £16.0 million compared to £16.1 million in
2023, suggesting the company maintained cost discipline while investing in
client acquisition.
In April
this year, Saxo
UK introduced a new Flexible ISA after experiencing a sixfold increase in
demand for its Stocks and Shares ISA in early 2025.
Market Challenges
Saxo UK
operates in an increasingly competitive online trading
Online Trading
Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone
Online trading represents the trading of fiat currencies, digital currencies, commodities, stocks and indices, where traders and investors intend to make a profit, via the purchase or sale of the aforementioned products. This is done through an electronic network, made accessible by brokers in the form of an online trading platform or hub.Online trading continues to see a rapid growth year on year, due to a number of reasons. Firstly, the number of brokers offering their services, with more mone
Read this Term market where firms
compete heavily on pricing. The company acknowledged that "uncertain or unfavorable
macroeconomic or geopolitical conditions can impact UK’s operations negatively
or cause demand for its products and services to decline."
The firm
maintained a strong capital position with regulatory capital of £54.7 million
against a requirement of £18 million. Its cost-to-income ratio rose to 66% from
57% in 2023, reflecting the revenue pressures from pricing competition.
Looking
ahead, management said heightened market activity from recent macroeconomic and
geopolitical events resulted in increased client trading activity in the first
quarter of 2025, which could benefit revenues.
In March
this year, Saxo Bank UK’s long-serving Chairman, Richard
Balarkas, announced his departure after 10 years with the company.
