GENTOFTE, Denmark, Aug. 04, 2005 (PRIMEZONE) -- Saxo Bank continued to strengthen its business results across the critical indicators in the first 6 months. Pre-tax profit was DKK 73 million compared to DKK 69 million for the same period last year. The Bank obtained a 30% growth in client deposits in the first half-year. Against an industry landscape of limited volatility in the foreign exchange markets (the Bank's main area of business) the first-half, pre-tax profit of DKK 73 million was considered acceptable by the management.
"Growth in FX income was not entirely in correlation with the overall increase in number of clients and assets received from clients," commented co-CEO Lars Seier Christensen. "The first half-year of 2005 has been characterized by the relatively flat foreign exchange market without a clear trend and this has made it challenging for the individual investor to make a profit." Other business areas demonstrated solid advances, in particular income generated from CFD (stock derivatives) and online Futures trading. The Bank's expanding hedge fund and asset management business demonstrated strong growth, especially with institutional investors. Very satisfying and in line with the Bank's long-term plans the total number of clients and client deposits has doubled over the past twelve months. The increase in assets from clients in the first half-year of 2005 also doubled compared to the same period last year. Total deposits from clients grew from DKK 2.5 billion at the end of 2004 to DKK 3.3 billion, an increase of DKK 800 million in the first half-year compared to an increase of DKK 400 million in the same period last year. The increase comes partly from direct Saxo Bank client business and partly from the bank's partner relationships. In addition, the Bank's hedge fund business is managing several hundred DKK millions deposited in other banks.
Due to the increase in client deposits, the combined assets grew to DKK 3.3 billion, up from DKK 2.8 billion at the end of 2004. Shareholders' equity at the end of the half-year was DKK 229 million compared to DKK 178 million at the end of last year after dividend of DKK 36 million for the year 2004.
Lars Seier Christensen further commented, "In the light of the somewhat inactive foreign exchange market, the result is actually as we could expect. Most importantly we have increased the assets from clients and the number of new clients significantly. That is our most reliable indicator of growth long term. Investors throughout the world are looking more and more to Saxo Bank when opening a trading account. The marketplace will trade on our platform when it starts moving again."
"Looking at the start of the second half-year, the market softness has already changed. Actually we have recently beaten our daily trading record. On one single day in July the FX volume was 11.6 billion dollars (DKK 71 billion) in foreign exchange," added co-CEO Kim Fournais.
Saxo Bank has already in the first half of the year recruited more than 70 new employees, mostly within front office and IT. This is ahead of budget. "We are consistent in our aim to be the best bank within our segment," comments Lars Seier Christensen, "and I think we are well on the way. We expect to continue our recruitment in the second half with focus on sales, customer service and marketing."
Saxo Bank's online trading platform has in 2005 continued to win prestigious industry awards. Last month in New York, the Saxo Trader was awarded "Best Foreign Exchange Platform for Private Investors" in the FX Week's Best Bank Awards. "We continue to have a constant focus on improvements -- based on competent employees and the best IT solutions," says Kim Fournais.
About Saxo Bank
Saxo Bafurthernk A/S is a modern investment bank specializing in online investments in the international Capital Markets. Saxo Bank enables clients to trade currencies, shares, CFD contracts, futures, options and other derivatives as well as portfolio management via our online trading platform - SaxoTrader. SaxoTrader has been internally developed by Saxo Bank and is available to today's investor directly through Saxo Bank or through one of our global partnerships as an integral part of their own infrastructure. Today, Saxo Bank's most significant area of business is White Labelling, which is the development of tailored versions of the online trading platform to other banks and brokerage houses. Saxo Bank has 55 White Label Partners and thousands of direct clients in more than 140 countries. The bank's website www.saxobank.com - has a membership of over 600,000 and is visited by more than 60,000 investors every day. Saxo Bank currently employs 335 employees from 35 different countries. The bank is 71% owned by the financial holding company Internet Invest Holding A/S. The group consists of the parent company, Saxo Bank A/S and the bank's fully owned companies I.I.Real Estate A/S and Saxo Soft A/S.