GENTOFTE, Denmark, Aug. 25, 2006 (PRIMEZONE) -- Saxo Bank continued to post solid growth in earnings and overall business during first half-year 2006. The bank reported profits before tax of DKK 123m compared with DKK 73m during the corresponding period in 2005. Total client deposits also increased by 37% compared to the value of client deposits placed with the bank at the end of the same period in the previous year.
Saxo Bank's management reported satisfactory results for H1 2006 with profits before tax of DKK 123m. Operating income increased by 87% on a year-on-year basis from DKK 250m to DKK 468m. The bank's return on equity for the H1 2006 was 41% before tax, and 29% after tax respectively, with H1 pre-tax profits increasing from DKK 73m to DKK 123m; a 69% improvement relative to H1 2005.
"The overall earnings and financial performance of the bank is in line with expectations. The broader capital markets environment continues to present exciting and competitive challenges for us, so we are particularly pleased that so many retail and institutional clients continue to choose Saxo Bank as their preferred bank for online investment trading," said co-CEOs Lars Seier Christensen and Kim Fournais.
Client deposits grew by DKK 800m during the reporting period. By the half-year mark, total client deposits represented DKK 4.5 bn, compared with DKK 3.7 bn at the start of the year. This increase in client deposits was driven from the bank's private client business as well as its increasingly effective partner and institutional business.
As a result of the increase in direct client deposits, the bank's total assets increased in H1 by more than 20% to DKK 5.2 bn from DKK 4.3 bn as at the end of 2005. Shareholders' equity increased by 30%, to DKK 371m in H1 2006 compared with DKK 284m as at the end of 2005 less provision for a dividend payment of DKK 52m for 2005.
The bank's overall capital base was also further strengthened during H1 2006 with the addition of another subordinated loan of EUR 10m, or DKK 75m, bringing the total subordinated loan capital to DKK 149m.
During the H1 2006, Saxo Bank's personnel ranks grew by more than 170 employees, primarily throughout the sales, client service and IT functions -- and now numbers more than 600. In support of overall business growth plans, the bank expects the number of employees to increase to more than 800 professionals by the end of 2006.
Saxo Bank will continue with the deployment of its global expansion and business development plan during the rest of 2006. Following the successful launch of its first branch office in London in June 2006, the bank is continuing with plans to launch an Asian subsidiary, Singapore-based Saxo Capital Markets Ltd., in Q3 2006, together with recently announced efforts for organizing a Southern European office in Marbella, Spain.