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Avanza
Avanza Bank Holding |
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Interim Report January-September 2015

 · Regulatorisk information
· Net inflow totalled SEK 19,400 million (SEK 14,100m), corresponding to 14 (13 %) percent of the savings capital at the beginning of the year · The number of customers increased by 20 (12 %) per cent to 443,900 (371,200 as of 31 December 2014) · The total savings capital increased by 20 (18 %) per cent to SEK 170,700 million (SEK 141,900m as of 31 December 2014) · Operating income increased by 32 (16 %) per cent to SEK 665 million (SEK 503m) · Operating margin was 52 (43 %) per cent · The profit after tax increased by 64 (30 %) per cent to SEK 297 million (SEK 181m) · Earnings per share increased by 62 (30 %) per cent to SEK 10.19 (SEK 6.28) · After the end of the reporting period Lisa Lindström stepped down from the Board of Directors to avoid the risk of potential conflicts of interest between her role as a board member and ongoing engagements in other companies · Other than the aforesaid no other significant events have occurred after the end of the reporting period Third Quarter · Operating income increased by 26 per cent (12 %) to SEK 209 million (SEK 166m) · The profit after tax increased by 57 per cent (-3 %) to SEK 94 million (SEK 60m) · Earnings per share increased by 52 per cent (-2 %) to SEK 3.19 million (SEK 2.10) Quarterly highlights · In August and September Avanza was no. 1 in terms of transactions and turnover on Nasdaq Stockholm including First North · Avanza received the highest score among Swedish banks in a survey of trust conducted by the finance magazine Privata Affärer · Avanza achieved a new top score in its regular survey of customer satisfaction (Net Promoter Score) · The CEO of Avanza Pension was named "Influencer of the Year" at Strategitorget Försäkring, a forum for decision-makers in the Swedish insurance industry

Comments from the CEO

Strong growth and unusually high trading activity during the summer

With new mobile trading services, the launch of a new digital decision support service for fund savings (the Portfolio Generator), reduced prices on foreign securities trading and the launch of Avanza Markets, we entered the summer with a more competitive customer offering than ever. The result was a net inflow of SEK 5 billion and a customer inflow of 20,400 new customers in the third quarter. The customer inflow corresponds to an increase of 59 per cent compared to the same period in the previous year.

Trading in the summer months is normally calmer, but a volatile stock market coupled with a growing customer base had an impact on our trading figures. In the third quarter, for the first time, Avanza was the largest Swedish bank on the Stockholm stock exchange in terms of turnover. August also brought a new trading record with 200,000 transactions in a single day. Total brokerage income increased by 5 per cent on the previous three-month period, which is unusual for a summer quarter.

Income pressure due to turbulent market and falling repo rate

The third quarter has been a period of an unstable and falling stock market with further declining market interest rates following the Greek crisis and broad sell-offs in the Chinese stock markets. As a result, savings capital at Avanza has remained relatively stable despite a high net inflow. Savers’ search for safe investments is noticeable in decreasing income from fund commissions as investors shift their savings away from active investments awaiting a more stable market situation. The current market environment has also been a factor behind an unusually slow start to the autumn in Corporate Finance business, where many companies are postponing their IPO´s waiting for clear sky. A continued decline in the repo rate during the period has also put further pressure on our interest income. Consequently, we did not reach up to the record earnings of the previous quarter, in spite of increased brokerage income.. Still,the operating profit was up by 54 per cent compared with the same period in 2014.

Highest level of trust among Swedish banks

Although we have recently been operating in a volatile environment, where falling market interest rates and rapid changes in customers’ investment decisions have had a short-term impact on our income, I feel very confident in our long-term growth prospects. The key factor for long-term growth in operating income is that we continue to provide tangible customer value, capture market share from the major banks and gain the confidence of new customers. That is why it is particularly satisfying to note that we achieved a new top score in our regular Net Promoter Score customer satisfaction survey in the third quarter, a survey showing customer recommendation rate. The finance magazine Privata Affärer’s survey in the summer also showed that Avanza enjoys the highest level of trust among all Swedish banks. That is a trust that we will do our very best to continue to be worthy of.

Stockholm, 20 October 2015

Martin Tivéus, CEO Avanza