Avanza Bank Holding AB (publ): Interim Report January–September 2024
Third quarter 2024 compared to third quarter 2023
- Operating income increased by 12 per cent to SEK 959 million, mainly as a result of higher brokerage and net currency-related income as well as higher fund commissions. Other income decreased due to higher commission expenses mainly related to customer compensations of SEK 10.5 million connected to interest on investment savings accounts. Excluding these compensations, operating income rose by 14 per cent
- Operating expenses increased by 13 per cent to SEK 300 million, mainly due to higher personnel costs. This includes a one-off expense of SEK 10.6 million related to Avanza’s media company Placera. Excluding this, operating expenses increased by 9 per cent. The announced cost increase of 9.5 per cent for the full year remains unchanged, excluding the cost for Placera and the fine from IMY of SEK 15 million, which was announced in the second quarter
- Operating profit amounted to SEK 658 million, an increase of 12 per cent
- Profit for the period was SEK 568 million, an increase of 11 per cent
- Earnings per share before dilution amounted to SEK 3.61, an increase of 11 per cent
Events during the quarter
- A strategic overview has been conducted with new prioritised areas and updated long-term targets until the end of 2030. Avanza’s focus is strengthened market leadership in Sweden, to become No 1 in Private Banking and occupational pension, to improve scalability and expand internationally. See page 2 and 3
- Olov Eriksson was recruited as Chief Product Officer and a member of Group Management. Fredrik Broman took over as Chief Technology Officer and a member of Group Management, as previously announced. Deputy CEO and COO Gunnar Olsson announced that he will leave Avanza
- Entered an exclusive collaboration with Affärsvärlden to strengthen the offering of news and research on Placera. Consequently, Placera’s own editorial team is shut down
- Launched a new fund marketplace of non-listed assets as Private Equity for Private Banking customers
- Avanza was ranked as one of Sweden’s most attractive employers by professionals in the categories IT and Business/Economics in Universum’s annual survey. In IT, Avanza ranks highest in the financial industry
Quote from Gustaf Unger, CEO Avanza
”Sweden has the most well-developed and advanced savings market in Europe and Avanza is by far the largest savings and investment platform in Sweden. It is here that we will continue our growth journey, but also with our sights set on expanding abroad before the end of 2030. The goal is to grow our savings capital in Sweden by an average of 15% per year and reach over SEK 2,000 billion in savings capital 2030. Delivering on this ambition will require continuous efforts, while we are also focused on operating efficiency”.
| Q3 | Q2 | Change | Q3 | Change | Jan-Sep | Jan-Sep | Change | |
| 2024 | 2024 | % | 2023 | % | 2024 | 2023 | % | |
| Operating income, SEK m | 959 | 929 | 3 | 854 | 12 | 2,838 | 2,555 | 11 |
| Operating expenses, SEK m | –300 | –341 | –12 | –266 | 13 | –944 | –842 | 12 |
| Operating profit, SEK m | 658 | 588 | 12 | 588 | 12 | 1,893 | 1,713 | 11 |
| Profit for the period, SEK m | 568 | 506 | 12 | 510 | 11 | 1,629 | 1,483 | 10 |
| Earnings per share before dilution, SEK | 3.61 | 3.22 | 12 | 3.25 | 11 | 10.36 | 9.47 | 9 |
| Operating margin, % | 69 | 63 | 5 | 69 | 0 | 67 | 67 | 0 |
| Return on shareholders' equity, % | 42 | 35 | 7 | 41 | 1 | 38 | 39 | –1 |
| Net inflow, SEK m | 22,000 | 17,200 | 28 | 21,200 | 4 | 61,200 | 54,300 | 13 |
| No. of new customers (net) | 40,500 | 33,700 | 20 | 31,300 | 29 | 123,900 | 96,500 | 28 |
| No. of customers at the end of the period | 2,025,000 | 1,984,500 | 2 | 1,873,200 | 8 | 2,025,000 | 1,873,200 | 8 |
| Savings capital at the end of the period, SEK m | 927,500 | 893,700 | 4 | 715,400 | 30 | 927,500 | 715,400 | 30 |
| Income to savings capital ratio, % | 0.42 | 0.42 | 0.00 | 0.47 | –0.05 | 0.44 | 0.48 | –0.04 |
| Costs to savings capital ratio, % | 0.13 | 0.16 | –0.02 | 0.15 | –0.01 | 0.15 | 0.16 | –0.01 |
A webcast presentation will be held by Gustaf Unger, CEO, and Anna Casselblad, CFO, on 18 October 2024 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 avanza.se/ir. Further information and registration for participation is available at investors.avanza.se/en/ir/calendar/upcoming-events.
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:
Gustaf Unger, CEO
+46 (0)72 142 96 53
gustaf.unger@avanza.se
Anna Casselblad, CFO
+46 (0)8 409 420 11
anna.casselblad@avanza.se
Sofia Svavar, Chief Communications & IR Officer
+46 (0)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 that you as a customer will have more left in your own pockets than with any other bank or pension company. Services include saving in shares, funds, savings accounts, mortgages, and a strong pension offering. Avanza has over 2.0 million customers with over SEK 900 billion in total savings capital. This is equivalent to 7.5 per cent of the Swedish savings market. Avanza is largest in terms of number of transactions among Swedish banks on the Stockholm Stock Exchange. During the last 14 years Avanza has won SKI’s (Swedish Quality Index) award, “Year’s Most Satisfied Savings Customers”. For more information visit: avanza.se/ir
