Interim Report January-March 2017

First quarter 2017 compared to first quarter 2016

  • Customer growth remained strong and the number of new customers was 38,400 (26,100)
  • Net inflow in the quarter was SEK 8,620 million, an increase of 74 per cent
  • Operating income increased by 9 per cent, mainly due to higher fund volumes and currency-related income as well as good activity within corporate transactions
  • Operating expenses increased by 13 per cent, mainly due to an increased number of employees in IT and product development
  • Net profit of SEK 103 million, an increase of 5 per cent, mainly due to higher income
  • Digital stock trading was launched on some major European exchanges, and the brokerage fee was reduced to 1 euro at the lowest
  • The Annual General Meeting on 21 March 2017 resolved to re-elect all members of the Board of Directors. The dividend proposal of SEK 10.50 per share was approved
  • After the end of the quarter, Chief Legal Officer Teresa Schechter was elected to Avanza’s Group Management and CFO Birgitta Hagenfeldt was appointed deputy CEO, succeeding Henrik Källén
  • Cooperation agreement with Stabelo has been signed, with the purpose of distributing mortgages to broader customer groups

Quote from Johan Prom, CEO Avanza

“We have had a record start to 2017 despite more intense competition in terms of price pressure and new challengers. The transformation of the financial services industry has just begun, and as consumers have more providers to choose from, they will need a better overview of their finances. We continue to improve our offering and user experience to satisfy customer needs. Avanza’s platform, customer focus and innovation capabilities are well suited to the new market climate.”

Q1 Q4 Change Q1 Change
  2017 2016 % 2016 %
Operating income, SEK m 247 247 226 9
Operating expenses, SEK m –126 –130 –3 –112 13
Operating profit, SEK m 121 117 3 115 5
Net profit, SEK m 103 101 2 98 5
Earnings per share, SEK 3.46 3.39 2 3.35 3
Operating margin, % 49 47 2 51 –2
Net inflow, SEK m 8,620 6,210 39 4,960 74
No. new customers (net) 38,400 29,300 31 26,100 47
Savings capital at the end of the period, SEK m 246,300 231,000 7 188,900 30

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 20 April 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 an Internet bank 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 600,000 customers and nearly 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 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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Quotes

We have had a record start to 2017 despite more intense competition in terms of price pressure and new challengers. The transformation of the financial services industry has just begun, and as consumers have more providers to choose from, they will need a better overview of their finances. We continue to improve our offering and user experience to satisfy customer needs. Avanza’s platform, customer focus and innovation capabilities are well suited to the new market climate.
Johan Prom, CEO Avanza