Avanza Bank Holding Ab · OMXSTO:AZA
Avanza Bank Holding Ab — Q2 2024 Earnings Presentation
21 slides from Avanza Bank Holding Ab's earnings presentation, Jul 12, 2024
Slide 1: Avanza's second quarter 2024
Avanza's second quarter 2024 AVANZA ull
Slide 2: Positive momentum – many appreciated launches and strong growth in the quarter
Positive momentum – many appreciated launches and strong growth in the quarter • High innovation and many new features for our most trading-active customers • Ranked as Sweden’s most reputable financial company in surveys by both Verian* and Reputation&Trust *Previously Kantar SIFO Net inflow of SEK
Slide 3: Innovating together with our customers has helped us create a world-class user experience
Innovating together with our customers has helped us create a world-class user experience • Our superior customer experience is an important competitive advantage • No one in the industry has as much data and knowledge about retail savings and investments • On top of this, we meet with hundreds of c
Slide 4: Resulting in a strong brand – which is an important asset
Resulting in a strong brand – which is “Which companies do you know offer solutions for saving in an important asset securities?” Brand awareness among non-customers, % • Sweden’s most satisfied savings customers Avanza 57 for 14 consecutive years Swedbank • Top of the industry when it comes to bran
Slide 5: Growth figures well on track for another strong year
Growth figures well on track for another strong year Net inflow 18% higher than H1 2023 Customer acquisition 28% higher than H1 2023 100,0 400 000 Net new customers H1 Net inflow H1 350 000 Net new customers H2 Net inflow H2 90,0 300 000 80,0 250 000 200 000 70,0 150 000 60,0 100 000 SEK billion 50
Slide 6: Fund business increasingly important – with record high flows
Fund business increasingly important – with record high flows Fund capital is increasing, both in absolute numbers Net inflow to funds already in line and as share of total savings capital with full year 2023 350 000 40% 40 000 H1 H2 299 700 33 300 300 000 35% 35 000 30% 30 000 250 000 25% 25 000 23
Slide 7: Strong increase of overall market share to 7.5%
Strong increase of overall market share to 7.5% Market share of the Swedish savings market 100% Avanza's market share of the savings capital Avanza's market share of the net inflow Avanza's market share of the net inflow, R12m 80% 60% 40% 22% 20% 7.5% 0% -20% -40% Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15
Slide 8: Increasing number of trading customers
Increasing number of trading customers 800 000 40 700 000 35 600 000 30 500 000 25 400 000 20 300 000 15 200 000 10 100 000 5 0 0 Q1-19 Q2-19 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 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Brokerage-generating customers VIX qua
Slide 9: No clear seasonal pattern when it comes to brokerage
9 0,00 1,00 2,00 3,00 4,00 5,00 6,00 7,00 8,00 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Net brokerage income per trading day, SEK m Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23
Slide 10: The largest Swedish participant in stock trading on Nasdaq OMX and First North
The largest Swedish participant in stock trading on Nasdaq OMX and First North Decreased turnover market share to 7.1% due to Transactions – market share of 20.2% increased share of institutional trading 21% 80% 18% 70% 60% 15% 50% 12% 40% 9% 30% 6% 20% 3% 10% 0% 0% Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-
Slide 11: Making progress within our prioritised areas
Prioritised areas 2024 Making progress within our Improvements for our prioritised areas most active customers Activating new customers Some examples from the quarter Improved pension • Several new features launched for our most active customers, for example offering the analysis tab, TradingView in
Slide 12: Key take aways for the quarter
Key take aways for the quarter Positive business momentum • Continuously strong net inflows and customer intake – well ahead of 2023 • Making progress within our prioritised areas • High innovation – our world-class user experience is a competitive advantage, and we utilise our large customer base w
Slide 13: Financials – Q2 results
Financials — Q2 results avanzaulll
Slide 14: Strong results although negatively impacted by one-offs
Strong results although negatively impacted by one-offs Q2 24 Q1 24 ∆% H1 24 H1 23 ∆% Operating income, SEK m 929 951 -2 1,879 1,701 10 Operating expenses, SEK m -341 -303 12 -644 -577 12 Operating profit, SEK m 588 647 -9 1,235 1,125 10 Adjusted operating profit¹), SEK m 618 647 -4 1,265 1,125 12 P
Slide 15: Stable trading income despite fewer trading days
Stable trading income despite fewer trading days 1 000 951 929 900 868 882 847 833 854 824 800 767 768 Income split Q2 2024, % 754 740 Revenue, SEK m 700 618 5 600 23 500 43 400 19 300 11 200 100 0 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Total operating income N
Slide 16: Fund margin stable – although growing volume is key
Fund margin stable – although growing volume is key Fund margin stable despite continued trend towards index funds Net fund commissions is at all-time high 0,500% 50% 200 45% 180 0,400% 40% 160 35% 140 0,300% 30% 120 25% 100 0,200% 20% 80 15% 60 0,100% 10% 40 5% 20 0,000% 0% 0 Q1-21 Q2-21 Q3-21 Q4-2
Slide 17: Policy rate decrease mitigated by lower deposit rates
Policy rate decrease mitigated by lower deposit rates 431 409 398 Average interest rates -2 -9 404 Q1 24 Q2 24 Internally financed Internally financed 390 lending: 4.67% lending: 4.44% 349 Deposits: 1.86% Deposits: 1.88% 485 480 471 428 356 Volumes, SEK bn 279 SEK million 195 204 224 233 231 176 Sur
Slide 18: Operating expenses, SEK m
Cost guidance for the full year remains excluding IMY fine 400 350 341 Cost split Q2 2024, % Operating expenses, SEK m 306 303 326 300 289 287 272 273 266 4 253 249 250 238 26 216 200 192 62 7 150 1 100 50 0 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24 Q2-24 Total expenses
Slide 19: Strong capital position
Strong capital position Quarterly results have not been audited, because of which generated profit has not yet been added to own funds 30 June 2024 31 December 2023 Consolidated situation % SEK m % SEK m Total capital ratio / Own funds 25.5 3,615 24.7 3,574 Total capital requirement1) 18.2 2,586 18.
Slide 20: Well positioned for the future
Well positioned for the future • The Avanza brand – one of our most important assets • Strong results once again proving the resilience of our well diversified income model • Growth figures keeping steady at a high level • Internal efficiency increasingly important going forward • Carefully maintain
Slide 21: Opening up for questions
21 Opening up for questions ace € ‘Avanzalmpact by Circulus Oversikt Detaljer Nyheter < @ Hallbarhet Historisk utveckling God morgon Spara eller slésa? Idag ar det léning! Vardepappersutv. dag +7 234 kr @ Avanza Bank Holding AB +10.842 kr amanenenye Yl @ Sophirs Bo nc 5 567 kr ery anbaretsstsmolll n