Avanza Bank Holding Ab · OMXSTO:AZA
Avanza Bank Holding Ab — Q3 2022 Earnings Presentation
16 slides from Avanza Bank Holding Ab's earnings presentation, Oct 18, 2022
Slide 1: Avanza's third quarter 2022 Results presentation
18 October 2022 Avanza’s third quarter 2022 Results presentation
Slide 2: Savings capacity will most likely be reduced
Savings capacity will most likely be reduced o Deteriorated macro economic environment and a bear stock market o Rising borrowing costs, with two interest rate hikes in the quarter o The importance of savings clearer than ever o Monthly savings remain stable so far o Customer growth increased with o
Slide 3: The largest Swedish participant in stock market transactions on Nasdaq OMX and First North
The largest Swedish participant in stock market transactions on Nasdaq OMX and First North o Market share of 18.2% in terms of transactions in Q3 2022, and 8.7% in terms of turnover 21% 80% 70% 18% 60% 15% 50% 12% 40% 9% 30% 6% 20% 3% 10% 0% 0% Nordea Swedbank SEB SHB Avanza Nordnet Other Major Swed
Slide 4: Net inflow of SEK 31 billion in 2022 (-57% Y/Y)
Net inflow of SEK 31 billion in 2022 (-57% Y/Y) 14 2022 2021 12 10 SEK billion 8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec -2
Slide 5: The Avanza customer is financially more well-off than average
The Avanza customer is financially more well-off than average o Higher education o Higher average salaries o Higher average savings o Above average private possessions o Greater interest in their financials … while at the same time the Avanza customer o Live in larger cities o Majority in houses – i
Slide 6: Expanded external mortgage offer and strong growth in Avanza's own fund company
Expanded external mortgage offer and strong growth in Avanza’s own fund company o External mortgage offering expanded to include new loans and bridge loans o Pension Chase expanded to include private pensions o Improved decision-support o Our fund company the fastest grower in the Swedish market sin
Slide 7: Way to manoeuvre in current market environment
Way to manoeuvre in current market environment o Support our customers with information and insights o Grow the business with existing customers o Improve the customer experience for active customers o Consolidate and make sure we use all our resources wisely o No cost-cutting programme and no incre
Slide 8: Financials – Q3 results
Financials — Q3 results avanzaulll
Slide 9: Strong 9-months results given turbulent times
Strong 9-months results given turbulent times Q3 22 Q2 22 ∆% 9M 22 9M 21 ∆% Operating income, SEK m 740 618 20 2,126 2,477 -14 Operating expenses, SEK m1) -238 -272 -13 -758 -611 24 Operating profit, SEK m 502 345 46 1,368 1,866 -27 Net profit, SEK m 433 296 47 1,172 1,563 -25 Operating margin, % 68
Slide 10: Revenue, SEK m
Transaction-related income affected by market environment, but compensated by the NII 1 000 957 900 824 768 754 767 800 740 700 618 575 600 542 526 643 Revenue, SEK m 500 400 329 313 300 200 100 0 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Total income Income from
Slide 11: Strong interest rate sensitivity of SEK 550 million
Strong interest rate sensitivity of SEK 550 million Liabilities Assets Liquidity SEK 10bn linked to the policy rate or Stibor Cost Margin lending 0% SEK 9bn Management decision Deposits and Mortgage lending borrowing from SEK 11bn the public 100% linked to the policy rate SEK 60bn Bonds SEK 32bn 3M
Slide 12: Operating expenses, SEK m
Costs seasonally low, and in line with plan 300 272 253 249 250 238 Operating expenses, SEK m 216 200 212 192 185 205 179 179 148 164 150 100 50 0 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Total expenses Non-reccuring items Personnel Marketing Depreciation Other e
Slide 13: Costs to savings capital ratio affected by market downturn
Costs to savings capital ratio affected by market downturn – focus on consolidating the business 160 900 000 142 140 800 000 Savings capital, SEK m 120 700 000 600 000 Basis points 100 73 500 000 80 400 000 60 300 000 40 40 200 000 20 14 100 000 0 0 Savings capital Income/savings capital Costs/savin
Slide 14: Pillar 2 guidance received from the SFSA
Pillar 2 guidance received from the SFSA Leverage ratio sensitivity 3,0% Consolidated situation 30 September 31 December Remaining deposit 2022 2021 capacity SEK 24bn Total capital ratio, % 25.3 24.0 3,9% Remaining deposit Total capital requirement, %1) 15.1 12.6 capacity Capital surplus, % 10.2 11.
Slide 15: Well positioned for the future
Well positioned for the future o Low risk balance sheet – a good thing in current macro environment o Well capitalised with a LR ratio at 4.6% o Solid results given the circumstances – ROE 35% for the 9M period o High interest rate sensitivity although customer behaviour harder to predict o Competit
Slide 16: Opening up for questions
Opening up for questions = ou sa World Tech 5 ot e Avanza Gle vee sminoirs299) gf aget, i a0 aa ani Mer till dig, 7 mindre till banken =a avanzaulll