Saxo Bank Predicts 2025 Revenue Decline

Saxo Bank predicts 2025 revenue decline after restructuring but sees future growth potential. 2024 ends with a record profit and strong client growth.

Key Points:

• Saxo Bank expects a revenue decline in 2025 following its restructuring and market reduction.
• The company achieved a record-breaking 2024 with a 287% rise in net profit and strong client growth.

Saxo Bank is forecasting a decline in revenue for 2025 after restructuring its distribution model, which included narrowing the number of markets it serves and offboarding clients in 2024. The Danish online trading platform acknowledged that the decision would have a negative impact on its revenue but emphasized that the changes would help the company focus more effectively on future growth.

Saxo Bank Predicts 2025 Revenue Decline

As part of the restructuring, Saxo has reduced the number of countries from which it accepts clients and streamlined its offerings by removing certain complex products and services. This simplification aims to make the company’s business model more scalable and efficient.

CEO and Founder Kim Fournais expressed confidence in the move, noting that the restructuring process is ongoing and should be completed by the end of 2025. Saxo also made significant changes to its operations in the Asia-Pacific region, closing offices in Shanghai and Hong Kong, and selling the majority of its Australian business.

The company recognized restructuring costs of DKK 69 million, which include DKK 75 million in staff and administrative expenses and DKK 6 million in tax costs. Saxo stated it expects higher costs in the short term, including additional marketing investments to support future client growth.

Saxo Bank has revised its 2025 net profit forecast, now expecting it to fall between DKK 950 million and DKK 1.1 billion.

Despite the outlook for 2025, Saxo closed 2024 with a record-breaking performance. The company saw its net profit surge 287% to €135 million, compared to €35 million the previous year. Adjusted net profit reached €144 million, marking its most successful year in history.

Saxo’s success was driven in part by a new global pricing strategy implemented in early 2024, which provided clients with more competitive rates. This move helped boost Saxo’s client base to nearly 1.3 million by the end of 2024, up from 1.16 million the year before. Client assets under management also reached a record €114 billion, a 14% increase from €100 billion in 2023.

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