Interim Report January-March 2018

First quarter 2018 compared to first quarter 2017

  • Customer growth was 42,400 (38,400), which marked the second largest increase ever for a single quarter
  • Net inflow in the quarter was SEK 7,960 million, a decrease of 8 per cent
  • Operating income increased by 11 per cent, mainly due to higher fund volymes and, as a result, higher fund commissions. Other income also increased, mainly as a result of increased trading in foreign securities and higher income from Avanza Markets
  • Operating expenses increased by 23 per cent, mainly due to expanded development capacity for further growth. The cost increase in the first quarter is according to plan and the estimate of a cost growth of 8-10 per cent for the full year remains
  • Net profit of SEK 104 million, in line with last year
  • The Annual General Meeting on 20 March 2018 resolved to re-elect the board members and elect Viktor Fritzén as a new member. The dividend, as proposed SEK 10.50 per share, was authorised corresponding to 83 per cent of profit
  • Avanza has Sweden’s most satisfied banking customers and is by far the country’s best brokerage firm, according to a customer survey conducted by Nordic Bench

Quote from Rikard Josefson, CEO Avanza

“Activity was mixed during the quarter – record-high initially but slower in the second half. Volatility in brokerage income is high, but fund capital is growing and will give us more stable income over time. At the same time, the implementation of the MiFID2 regulation creates good growth opportunities as customers become more price conscious. The advantages of our offer will shine through, especially when it comes to pensions.”

Q1 Q4  Change Q1  Change
2018 2017 % 2017 %
Operating income, SEK m 271 271 0 244 11
Operating expenses, SEK m -152 -157 -3 -124 23
Operating profit, SEK m 120 114 5 121 -1
Net profit, SEK m 104 98 6 103 0
Earnings per share, SEK 3.45 3.27 6 3.46 0
Operating margin, % 44 42 2 49 -5
Net inflow, SEK m 7,960 3,550 124 8,620 -8
No. new customers (net) 42,400 42,500 0 38,400 11
Savings capital at the end of the period, SEK m   288,700  282,900 2  255,100 13

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 18 April 2018.

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:

Rikard Josefson, CEO
+46 70 206 69 55
rikard.josefson@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 750,000 customers with more than SEK 280 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: investors.avanza.se/en

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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 more than 800,000 customers with over SEK 300 billion in total savings capital. This is equivalent to 3.8 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://investors.avanza.se/en.

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Quotes

Activity was mixed during the quarter – record-high initially but slower in the second half. Volatility in brokerage income is high, but fund capital is growing and will give us more stable income over time. At the same time, the implementation of the MiFID2 regulation creates good growth opportunities as customers become more price conscious. The advantages of our offer will shine through, especially when it comes to pensions.
Rikard Josefson, CEO Avanza