Comments from the Managing Director
”We can do considerably better, profit-wise, than we did during the second quarter. A number of negative factors coincided. Stock market gloom meant that trading activity was down 25 per cent on the corresponding period in 2010, and nonrecurring costs of SEK 12 million and credit losses of SEK 6 million were charged to the quarter. Avanza Bank aims to ensure that a credit loss on this scale is a one-off event and we are consequently taking steps to ensure that any credit losses in conjunction with similar events in the future will be of only a marginal nature”, says Nicklas Storåkers, Managing Director of Avanza Bank.
”The preconditions for a substantially better result in the coming quarters are good, and we are, therefore, still of the opinion that Avanza Bank will achieve its long-term goal of the 15–20 per cent annual growth in profits before non-recurring costs in 2011.”
”The net inflow across the entire savings market was weak during the first half of 2011 which is believed to be due to higher interest rates as resulted in more people to save by amortising their housing loans. This negative effect has lasted between 3 and 6 months in conjunction with previous interest rate rises. Avanza Bank continues, however, quickly to take market shares. This is visible especially for savings accounts and pension- and insurance savings, where savings capital increased by 154 respective 27 per cent in the past year. We have also improved the long-term growth opportunities this past spring with Sparkonto+ by offering both better variable and fixed term interest rates on savings than any of the major banks, and the net inflow overall is expected to improve in relative terms during the latter half of the year.”
For additional information:
Nicklas Storåkers, Managing Director of Avanza Bank, tel: +46 (0)70 861 80 01
Birgitta Hagenfeldt, CFO of Avanza Bank, tel: +46 (0)73 661 80 04