Interim Report January-June 2017

Second quarter 2017 compared to second quarter 2016

  • Customer growth remained strong and the number of new customers was 27,900 (23,100)
  • Net inflow in the quarter was SEK 8,710 million, a decrease of 8 per cent. Net inflow in second quarter 2016 included SEK 2.2 billion from the expanded Remium cooperation
  • Operating income increased by 5 per cent, mainly due to higher fund provisions
  • Operating expenses increased by 17 per cent as part of our investment in future growth, and are mainly attributable to an increased number of employees in IT and product development as well as compliance
  • Net profit of SEK 89 million, a decrease of 6 per cent
  • Rikard Josefson was named the new CEO. Rikard will assume the role within six months and Johan Prom will continue as CEO until then
  • Avanza was awarded the best customer service in the financial services industry during the quarter
  • The Savings Account+ offer was improved with a higher interest rate
  • The digital European trading offer was expanded
  • Small businesses can now obtain an occupational pension digitally and all sales resources within occupational pensions will be allocated to Göteborg and Stockholm
  • Claes Hemberg was voted “Personal Finance Commentator of the Year”

Quote from Johan Prom, CEO Avanza

“Customer growth remained strong in the second quarter and we were proud to win an award for best customer service. The willingness of Avanza’s customers to take on risk was low, as was volatility in the equity market, which negatively affected brokerage income despite that the number of brokerage customers remained high. The upward trend in funds and in the pension business continued. This, coupled with strong product development, bodes well for stable income going forward.”

Q2 Q1  Change Q2  Change  Jan-Jun  Jan-Jun  Change
2017 2017 % 2016 % 2017 2016 %
Operating income, SEK m 236 247 –5 225 5 482 451 7
Operating expenses, SEK m –133 –126 5 –113 17 –259 –225 15
Operating profit, SEK m 103 121 –15 111 –7 224 226 –1
Net profit, SEK m 89 103 –14 94 –6 192 192 –0
Earnings per share, SEK 2.97 3.46 –14 3.18 –7 6.43 6.53 –2
Operating margin, % 44 49 –5 49 –6 46 50 –4
Net inflow, SEK m 8,710 8,620 1 9,430 –8 17,300 14,400 20
No. new customers (net) 27,900 38,400 –27 23,100 21 66,200 49,300 34
Savings capital at the end of the period, SEK m  261,600  246,300 6  199,200 31 261,600 199,200 31


This information is information that Avanza Bank Holding AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out below, at 08.15 (CEST) on 13 July 2017.

This Interim Report is published in Swedish and English. In the event of any difference between the English version and the Swedish original, the Swedish version shall prevail.

For further information please contact:

Johan Prom, CEO
+46 70 689 23 46
johan.prom@avanza.se

Birgitta Hagenfeldt, CFO and Deputy CEO
+46 73 661 80 04
birgitta.hagenfeldt@avanza.se

Sofia Svavar, Head of Investor Relations
+46 8 409 420 17
sofia.svavar@avanza.se

Avanza is a digital platform for savings and investments, founded in 1999. The Parent Company, Avanza Bank Holding AB (publ), is listed on the Stockholm Stock Exchange. Avanza’s customer promise is a better return on your savings than with any other bank or pension provider in Sweden – due to low fees. Services include saving in shares, funds, savings accounts and a strong pension offering. Avanza has over 600,000 customers with more than SEK 250 billion in total savings capital. This is equivalent to just over 3 percent of the Swedish savings market. Avanza is largest in terms of number of transactions among Swedish banks on the Stockholm Stock Exchange including First North. During the last seven years Avanza has won SKI’s (Swedish Quality Index) award, “Year’s Most Satisfied Savings Customers”. For more information visit: http://www.avanza.com

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About Us

Avanza is a digital platform for savings and investments, founded in 1999. The Parent Company, Avanza Bank Holding AB (publ), is listed on the Stockholm Stock Exchange. Avanza’s customer promise is a better return on your savings than with any other bank or pension providers in Sweden – due to low fees. Services include saving in shares, funds, savings accounts and a strong pension offering. Avanza has over 700,000 customers with more than SEK 270 billion in total savings capital. This is equivalent to 3.6 per cent of the Swedish savings market. Avanza is largest in terms of number of transactions among Swedish banks on the Stockholm Stock Exchange including First North. During the last eight years Avanza has won SKI’s (Swedish Quality Index) award, “Year’s Most Satisfied Savings Customers”. For more information visit: http://www.avanza.se/ir.

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Quotes

Customer growth remained strong in the second quarter and we were proud to win an award for best customer service. The willingness of Avanza’s customers to take on risk was low, as was volatility in the equity market, which negatively affected brokerage income despite that the number of brokerage customers remained high. The upward trend in funds and in the pension business continued. This, coupled with strong product development, bodes well for stable income going forward.
Johan Prom, CEO Avanza