Saxo Capital Markets UK Ltd, the British subsidiary of Danish investment bank Saxo Bank A/S, reported an 18% decline in net operating income to £26.2 million for the year ended Dec. 31, 2022, down from £32.1 million in 2021.
The FCA-regulated trading platform provider posted profit before tax of £13.1 million, a 15% decrease from £15.4 million in the prior year. Profit after tax fell 14% to £10.5 million from £12.4 million in 2021.
The company attributed the revenue decline to geopolitical and market challenges affecting trading volumes and commissions. Inflation, rising interest rates, equity market declines, and sanctions against Russia all impacted client activity and revenue generation, the filing stated. A reduction in the revenue share from parent company Saxo Bank, effective July 2022, further compounded the decline.
Despite lower revenues, the company expanded its client base by over 20,000 during the year, reaching a record of more than 123,000 clients with assets. Total client assets under management grew to £1.94 billion from £1.62 billion at the end of 2021.
The company maintained a strong capital position with Tier 1 capital of £59.5 million, up from £53.3 million, resulting in surplus regulatory capital of £54.6 million under the new Investment Firms Prudential Regime adopted in January 2022.
Average headcount remained unchanged at 63 employees. No dividend was paid during the period, compared with £4.3 million distributed in 2021.
