Nordnet Interim Report January–June 2017
- Operating income increased by 1 percent to SEK 296.9 million (293.5)
- Operating profit decreased by 50 percent to 43.0 million (86.8)
- Profit after tax for the period fell by 46 percent to SEK 37.3 million (68.5)
- The building of the new Nordnet has begun, extraordinary costs during the second quarter amount to SEK 31.6 million
- Operating income increased by 5 percent to SEK 620.7 million (592.4)
- Operating profit decreased by 19 percent to 142.7 million (176.0)
- Profit after tax for the period fell by 16 percent to SEK 118.3 million (140.5)
- Extraordinary costs related to building the new Nordnet during the period January-June amount to SEK 34.7 million
Highlights from the second quarter
- Peter Dahlgren takes up position as new CEO
- Nordnet Markets was launched throughout the Nordic region – a marketplace for commission-free trading in exchange-traded products
- The beta version of Nordnet’s new site was launched for all customers in the Swedish market
Peter comments on the quarter
At the end of May, I took up my position as CEO and have been entrusted by the owners with the assignment to begin building the new Nordnet.
My ambition is to, together with my colleagues, create the world’s best customer experience in savings and investments. As a digital bank, it is inherent for our customer experience to rely on the digital environment. And this is where I see enormous possibilities. First of all, we must improve how we offer support to savers as well as guidance in their investment decisions. Digital financial advising is an area with great potential to reach many people and increase our potential market. A significant number of people are looking for a sounding board when it comes to savings, and this often involves relatively complicated products and complex relationships. At the same time, today’s financial advice has been difficult to access and prone to credibility issues. Secondly, I hope that in taking advantage of the opportunities offered by artificial intelligence and other cognitive technologies, in the near future we will be able to provide better service and guidance to our customers.
The framework for achieving our ambition involves a high degree of innovation and a rapid pace of development. New ways of thinking and a willingness to challenge traditional structures are core values for Nordnet, and something we will continue to promote and uphold. But we need to step up the speed of product development. This is an area where we simply have more energy and potential than we have managed to show. I look forward to presenting a great deal of exciting news in the future. During the quarter, we introduced all Swedish customers to parts of the first version of our new website, which we are calling Nordnet Beta. Soon, we are going to be presenting news within digital financial advising.
Realizing the vision of offering the world’s best customer experience in savings and investment will require several years and cost money. During the quarter, we invested in restructuring our operations with increased focus on product development, but also on automation, a more scalable IT platform and improved capability in terms of our digital market presence. Our expenses are just over 20 percent higher than in the corresponding quarter in 2016. At the same time, we have increased income through more transactions as well as improved net savings. The bottom-line results are lower, but these types of short-term major initiatives we are now conducting are possible in an unlisted environment, and I see this as proof that we have succeeded in getting our transformation process off the ground rapidly.
Supported by strong owners, and with a clear vision, I strongly believe that we will succeed. There is room to increase our business considerably, and I refuse to accept being in second place in any of our markets within an area that is important for our customers, employees or owners. I look forward to taking Nordnet to the next level. The journey has begun, and I hope that you will join us.
Nordnet is a bank for investments and savings with business in Sweden, Denmark, Finland and Norway. The idea behind Nordnet is to give customers control of their money, and the goal is to become the no. 1 choice for investments and savings in the Nordics. Visit us at www.nordnetab.com, www.nordnet.se, www.nordnet.no, www.nordnet.dk or www.nordnet.fi.