Interim Report January-March 2019

First quarter 2019 compared to first quarter 2018

  • Customer growth was good and 33,600 (42,400) new customers were added
  • Net inflow in the quarter was SEK 7,570 million (7,960), a decrease of 5 per cent
  • Operating income decreased by 1 per cent due to lower brokerage income and other income. The brokerage income decreased due to lower brokerage per commission note. Net interest income was improved.
  • 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, the current budget figure for 2019 is 10.5 per cent
  • Net profit amounted to SEK 87 million, a decrease of 16 per cent
  • In February, the Swedish Financial Supervisory Authority decided to issue a warning and an administrative fee of SEK 35 million on Försäkringsaktiebolaget Avanza Pension for previous non-compliance. The fee was reported in 2018 and is fully excluded from the communicated cost growth for 2019
  • The Annual General Meeting in March resolved to re-elect the board members, with the exception of Sophia Bendz who declined re-election. The dividend, as proposed SEK 10.50 per share, was authorised corresponding to 91 per cent of the profit for 2018
  • Today, 16 April, is the record date for the Annual General Meetings’s resolved share split in Avanza Bank Holding AB (publ), whereby each existing share has been divided into five shares
  • The AVA Gender Equality Tracker was launched to make it easier to invest in gender equal companies
  • Avanza Emerging Markets, Sweden’s cheapest emerging market fund for individual investors, was launched
  • Made it easier for customers to transfer securities through Open Banking
  • Jesper Bonnivier took over in April as CEO of Avanza Fonder and a member of Group Management
  • Malin Nybladh, Head of HR and a member of Group Management, left Avanza. The recruitment process to find a new Head of HR is underway

Quote from Rikard Josefson, CEO Avanza

“Trading activity increased during the quarter, but income was affected by customers’ trading patterns and lower average fund capital. Short-term performance by both customers and Avanza is largely dependent on market conditions. We are confident that our efforts in the long run will lead to a better future for our customers and shareholders.”

Q1 Q4 Change Q1 Change
2019 2018 % 2018 %
Operating income, SEK m 268 267 0 271 -1
Operating expenses, SEK m -164 -190 -13 -152 8
Operating profit, SEK m 100 76 31 120 -16
Net profit, SEK m 87 60 45 104 -16
Earnings per share before dilution, SEK 2.87 1.98 45 3.45 -17
Operating margin, % 37 29 9 44 -7
Net inflow, SEK m 7,570 6,360 19 7,960 -5
No. of new customers (net) 33,600 28,600 17 42,400 -21
Savings capital at the end of the period, SEK m 335,700 300,000 12 288,700 16

A webcast presentation will be held by Rikard Josefon, CEO, and Birgitta Hagenfeldt, CFO, on 16 April 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 16 April 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 850,000 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 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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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 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

Trading activity increased during the quarter, but income was affected by customers’ trading patterns and lower average fund capital. Short-term performance by both customers and Avanza is largely dependent on market conditions. We are confident that our efforts in the long run will lead to a better future for our customers and shareholders.
Rikard Josefson, CEO Avanza