Saxo Bank posts net profit of almost USD67m in H1 2011

This is a 37% decrease compared with the same time last year.

According to a release, Saxo Capital Markets' parent company, Saxo Bank, has reported a net profit of DKK 346 million or almost USD 67 million for the first six months of 2011. The result which is in line with expectations represents an increase of 375% over the second half of 2010, and a decrease of 37% compared with the first six months of 2010, when market activity and volatility were unusually high.

• Operating income DKK 1,772 million (DKK 1,992 million)
• Profit before tax DKK 474 million (DKK 729 million)
• Net profit DKK 346 million (DKK 551 million)
• Solvency ratio 12.3% (19.2%)
• Clients' collateral deposits DKK 32,855 million (DKK 26,590 million)
• Assets under management DKK 32,357 million (DKK 24,606 million)

Saxo Bank Group saw a significant increase in average monthly volumes traded in CFD stock indices, single stocks and commodities, cash stocks, FX options and futures compared to the same period last year. Monthly FX volumes averaged approximately DKK 1.2 trillion in the first half of 2011, with lower trading volumes in the first quarter and a pick up in the second.

While the overall trader and investor activity level was moderate in the first half of 2011, the Group saw continued growth in clients' collateral deposits and assets under management, which are the foundation for future business and profits. Total assets under management in Saxo Bank Group's trading business increased from DKK 31.2 billion as of 31 December 2010 to DKK 32.4 billion as of 30 June 2011. Clients' collateral deposits in the Group's asset management business increased from DKK 31.3 billion as of 31 December 2010 to DKK 32.9 billion as of 30 June 2011.

Operating income for the first six months of 2011 reached DKK 1,772 million for the Group. This is lower compared to the same period in 2010, but represents an increase in trading-related income following on from the second half of 2010.

Kim Fournais and Lars Seier Christensen, co-founders and CEOs of Saxo Bank A/S, said in a joint statement:

"Saxo Bank achieved a satisfactory half-year net profit fully in line with expectations, despite general market conditions which reduced risk appetite in the economy and dampened capital market activities. While keeping a close eye on overall cost developments, Saxo Bank will keep its focus on expanding our products and services as well as optimising the efficiency and profitability of our operations. Overall, we believe the Group has a solid foundation for current and future operations and we expect to continue to create value for our stakeholders."