GENTOFTE, Denmark, Feb. 28, 2007 (PRIME NEWSWIRE) -- Saxo Bank has released its annual report for 2006, revealing yet another year of expansive growth figures for the investment bank. Net profits before tax were DKK 205 million down from DKK 222 million in 2005. Operating income rose 58 percent from DKK 634 million in 2005 to a record high DKK 1,002 million in 2006. Operating costs -- including major investments in the future growth -- rose 93 percent. The bank's return on equity before tax was 53 percent before tax, and 38 percent after tax.
"Once again, we have experienced solid growth in earnings in our FX trading operations, and satisfactory growth in earnings in CFD's and futures contracts," said Saxo Bank co-CEO Lars Seier Christensen, in a comment on the earnings report. "We can only be pleased with our new global structure and the record earnings level, which also reflects the general growth in number of clients during the year."
Client deposits grew by DKK 2 billion in 2006, totalling DKK 5.7 billion at year's end against DKK
3.7 billion at the start of the year. Growth in client deposits was attributed to direct client business as well as Saxo Bank's growing roster of white-label partnerships with financial institutions who market the bank's trading platform in their own name and corporate identity. Shareholders equity after dividends rose 43 percent from DKK 284 million in 2005 to DKK 385 million in 2006. The result further consolidated the bank's financial standing, presenting favorable conditions for a continuation of the current, high-growth trend.
Investment in future growth
The sizable increase in operating costs was due to major investments, including a doubling in personnel and the opening of new offices in London and Singapore. Saxo Bank expanded its workforce by more than 400 in 2006, with particular focus on sales, service and marketing capacities, along with IT, operations and other functions central to the value chain. The bank currently employs more than 900 people worldwide, and the expansion is expected to continue. No formal announcement has been made regarding future office sites for the bank.
Offering his comment on the annual report and the outlook for 2007, co-CEO Kim Fournais said: "Our new global structure, with offices in Copenhagen, London, Singapore, Marbella and St. Petersburg, demands more skilled employees who are self-directed and team-oriented. Meeting this challenge will be crucial to implementing the bank's strategy for growth."
About Saxo Bank A/S
Saxo Bank 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. One of Saxo Bank's significant areas 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 more than 70 White Label Partners and thousands of clients in 177 countries. The bank's website www.saxobank.com has approx. 65,000 visitors every day. Saxo Bank currently employs more than 900 employees from 45 different countries. The bank is headquartered in Denmark, with operating offices in London and Singapore, and an IT development center in St. Petersburg, Russia.