Saxo Capital Markets UK Ltd reported profit after tax of £13.2 million for the year ended Dec. 31, 2020, more than tripling from £4.3 million in the prior year, according to accounts filed with Companies House.
The UK subsidiary of Danish investment bank Saxo Bank A/S posted net operating income of £32 million, up 36% from £23.5 million in 2019. Trading profits rose 46% to £29.9 million from £20.5 million, driven by increased client activity during COVID-19 market volatility.
Profit before tax climbed to £16.4 million, up from £5.3 million in the prior year, representing a 206% increase. The company attributed the strong performance to record-breaking revenue, reduced costs from a 2019 savings initiative, and lower travel expenses due to pandemic restrictions.
Administrative expenses fell 13% to £15.3 million from £17.6 million. The company’s headcount decreased to 62 employees from 81 in the prior year.
Client money held reached £382.8 million at year-end, up 13% from £337.7 million. Total client assets under management stood at £1.51 billion, compared to £1.44 billion in 2019.
The company paid a dividend of £6.5 million during the period, its first distribution since at least 2019. Regulatory capital resources stood at £46.1 million, exceeding the Pillar 1 capital requirement by 970%.
Saxo Capital Markets UK provides access to global capital markets for traders and investors through multi-asset trading platforms, operating as a wholly owned subsidiary of Saxo Bank A/S.
