Interim Report January-June 2019

Second quarter 2019 compared to second quarter 2018

  • Customer growth was 31,500 (23,300), an increase of 35 per cent
  • Net inflow in the quarter was SEK 8,270 million (4,840), an increase of 71 per cent
  • Operating income increased by 17 per cent, mainly due to improved net interest income but also higher brokerage income and fund commissions
  • Operating expenses increased by 8 per cent, mainly due to higher personnel cost. The long-term guidance on Avanza’s annual cost increase is 9−12 per cent, with a current budget figure for 2019 of 10.5 per cent
  • Net profit amounted to SEK 101 million, an increase of 28 per cent
  • Avanza expanded its range of trackers, which can be seen as an alternative to last year’s reduced selection of ETF’s
  • A great deal of work has spent on the fund offering, resulting in a number of improvements, including a completely new fund page
  • Share data on foreign shares was introduced
  • In the area of sustainability, Avanza launched a separate section on sustainable savings, more extensive sustainability data in the fund marketplace and a Green Mortgage loan in collaboration with Stabelo
  • Avanza received several awards during the quarter, including from Lipper Fund Awards, ServiceScore and in Kantar Sifo’s reputation index
  • Camilla Hedenfelt has been named the new Head of Human Resources and a member of Group Management. She will take on her new role on 1 September

Quote from Rikard Josefson, CEO Avanza

“In the quarter we reached over SEK 100 billion in fund capital. We saw a strong net inflow, received several fine awards and passed 900,000 customers. We also had a record number of active equity investors and reached our highest eNPS ever, which shows the strong commitment among our employees.”

Q2 Q1 Change Q2 Change Jan-Jun Jan-Jun Change
2019 2019 % 2018 % 2019 2018 %
Operating income, SEK m 284 268 6 244 17 552 515 7
Operating expenses, SEK m –166 –164 1 –153 8 –330 –305 8
Operating profit, SEK m 117 100 18 90 31 217 209 4
Net profit, SEK m 101 87 16 79 28 188 183 3
Earnings per share before dilution, SEK 0.67 0.57 16 0.53 26 1.24 1.22 2
Operating margin, % 41 37 4 37 4 39 41 –1
Net inflow, SEK m 8,270 7,570 9 4,840 71 15,800 12,800 24
No. of new customers (net) 31,500 33,600 –6 23,300 35 65,200 65,700 –1
Savings capital at the end of the period, SEK m 359,300 335,700 7 307,100 17 359,300 307,100 17

A webcast presentation will be held by Rikard Josefson, CEO, and Birgitta Hagenfeldt, CFO, on 11 July 2019 at 10.00 (CEST). The presentation will be held in English and there will be opportunities to ask questions. The presentation can be followed at investors.avanza.se/en. Phone number for participants:

  • Sweden: +46 (0)8 566 426 51
  • UK: +44 33 330 008 04
  • US: +1 63 191 314 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 11 July 2019.

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. Services include saving in shares, funds, savings accounts, mortgages and a strong pension offering. Avanza has more than 900,000 customers with over SEK 300 billion in total savings capital. This is equivalent to 4.0 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 nine 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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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. Services include saving in shares, funds, savings accounts, mortgages and a strong pension offering. Avanza has more than 900,000 customers with over SEK 300 billion in total savings capital. This is equivalent to 4.2 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 nine 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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Quotes

In the quarter we reached over SEK 100 billion in fund capital. We saw a strong net inflow, received several fine awards and passed 900,000 customers. We also had a record number of active equity investors and reached our highest eNPS ever, which shows the strong commitment among our employees.
Rikard Josefson, CEO Avanza