The co-chief executive of Saxo Bank said on Monday that last week’s market turmoil had meant that September was the best ever month for the investment bank that specialises in electronic trading.
“It’s been quite fantastic. The month of September is the best we’ve ever had,” Saxo Bank co-chief executive Kim Fournais told Reuters.
“Obviously the increased volatility has given us extraordinary volumes in all products. Energy, precious metals, equity and fixed income. We have a very unique platform for taking moves,” he added.
Saxo Bank’s main speciality is in electronic foreign exchange dealing. Portuguese bank Banco Espirito Santo owns a 5 percent stake in the company.
Saxo also allows clients to trade in contracts-for-differences (CFDs), equities, fixed income, commodities and an array of futures, options and derivatives.
Fournais said the bank had not experienced the same bad debt problems as others during the global credit crisis.
“We don’t lend out money to any one. All our capital is in the short-term and government bills. We have a low risk business model and we are not at all in the CDS (credit default swap) market.”
Fournais said he expected the dollar to weaken despite U.S. government proposals to shore up the banking sector.
“We think the dollar will weaken from this. We still believe the market is in a significant crisis.”
Last month, Saxo reported that its first-half pre-tax profits had risen 57 percent to 162 million Danish crowns ($31.50 million) and Fournais said the second half of the year was going well.
“We are very close to having done last year’s result, both top and bottom line.” In 2007, Saxo’s pre-tax profits rose 78 percent from the previous year to 365 million crowns.
Saxo Bank’s main focus is on organic growth although the company bought online French foreign exchange broker Cambiste earlier this year. Fournais said the integration of Cambiste was going well.
Fournais declined to comment on recent media reports that Saxo might cut jobs, although he said the company had to become “more efficient.”
