A significant change in leadership is underway at Saxo Bank UK following the recent acquisition by the Swiss financial institution, J. Safra Sarasin Group. The Chairman of Saxo Bank UK, Richard Balarkas, has announced his resignation, which coincides with the completion of the acquisition of a 70% stake in the bank. Balarkas has served in this position since 2015 and has a background in finance from his roles at other major banks, including Credit Suisse and Instinet Europe.
The acquisition deal, valued at approximately €1.1 billion (or $1.19 billion), marks a pivotal moment for Saxo Bank, elevating its overall valuation to around €1.6 billion. As part of this transaction, Safra Sarasin will also acquire the stakes held by Finnish firm Mandatum and the Chinese automotive company Geely. The CEO of the bank, who founded it, will retain a 28% ownership share and continue to lead the company, ensuring that despite transitions in ownership, Saxo Bank aims to maintain its independent status in the market.
Historically, Saxo Bank has seen prior leadership transitions, including the recent resignation of its former CEO, Charles White-Thomson. His departure from the executive position, as well as from the Board of Directors, hints at a broader shift in the bank’s leadership structure as it adapts to the new ownership landscape.
This leadership transition emerges at a time of robust financial performance for Saxo UK. The bank reported a 7% increase in net profit for 2023, reaching £11.2 million, and saw significant growth in assets under management, which surged by 15% to £2 billion. The number of clients also grew by 4,000, bringing the total to 127,000, while trading revenues remained stable. Additionally, profit before tax experienced a 13% increase, nearing £15 million.
Despite Saxo Group reporting a decrease in overall net profit from the previous year, adjusted figures suggest a relatively minor downturn, indicating that the bank remains resilient amid industry changes. As Safra Sarasin integrates its majority stake, there may be further strategic realignments in how Saxo operates and positions itself in the competitive trading and financial services market.
Overall, this transition heralds a new chapter for Saxo Bank as it navigates the implications of its new ownership while simultaneously striving to uphold its commitment to independence and continued success in the financial sector.