Interim Report January–September 2017

Third quarter 2017 compared to third quarter 2016

  • Customer growth remained strong and the number of new customers was 31,200 (24,500)
  • Net inflow in the quarter was SEK 5,900 million, the same level as the previous year
  • Operating income increased by 4 per cent, mainly due to higher fund provisions
  • Operating expenses increased by 27 per cent, mainly due to an increased number of employees and higher other costs, to a large extent attributable to expanded development capacity
  • Net profit of SEK 89 million, a decrease of 16 per cent
  • The cost increase for full-year 2017 has been estimated at 15–20 per cent. The forecast is now that the increase will be nearer 20 per cent
  • Avanza Auto was launched — a smart, cheap and automatic way to manage savings for those who don’t feel that they have the time or knowledge to make active decisions themselves
  • Customers can now track the value of their investments in cryptocurrencies in the account overview
  • On 6 November, Rikard Josefson takes over as CEO, succeeding Johan Prom

Quote from Johan Prom, CEO Avanza

“Customer growth was strong during the quarter, and we are seeing great interest in Avanza Auto. Fund commissions were also strong, but trading income was again affected by low volatility and a risk aversion among customers. At the same time, the number of commission-paying customers was record high. The pension business performed strongly, and we welcome the government’s proposal to make it easier to transfer pension savings.”

Q3 Q2 Change Q3 Change Jan–Sep Jan–Sep Change
2017 2017 % 2016 % 2017 2016 %
Operating income, SEK m 229 236 –3 220 4 711 671 6
Operating expenses, SEK m –125 –133 –6 –98 27 –384 –323 19
Operating profit, SEK m 104 103 1 122 –15 327 348 –6
Net profit, SEK m 89 89 0 105 –16 280 298 –6
Earnings per share, SEK 2.97 2.97 0 3.53 –16 9.40 10.06 –7
Operating margin, % 45 44 2 55 –10 46 52 –6
Net inflow, SEK m 5,900 8,710 –32 5,920 –0 23,200 20,300 14
No. new customers (net) 31,200 27,900 12 24,500 28 97,500 73,700 32
Savings capital at the end of the period, SEK m 272,000 261,600 4 222,900 22 272,000 222,900 22

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 19 October 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 650,000 customers with more than SEK 250 billion in total savings capital. This is equivalent to 3.5 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 more than 800,000 customers with over SEK 300 billion in total savings capital. This is equivalent to 4 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

Customer growth was strong during the quarter, and we are seeing great interest in Avanza Auto. Fund commissions were also strong, but trading income was again affected by low volatility and a risk aversion among customers. At the same time, the number of commission-paying customers was record high. The pension business performed strongly, and we welcome the government’s proposal to make it easier to transfer pension savings.
Johan Prom, CEO Avanza