Avanza Bank Holding Ab · OMXSTO:AZA
Avanza Bank Holding Ab — FY2020 Earnings Presentation
28 slides from Avanza Bank Holding Ab's earnings presentation, Jan 21, 2021
Slide 1: Full-year 2020 results presentation
Full-year 2020 results presentation Webcast, 21 January 2021 Rikard Josefson, CEO Birgitta Hagenfeldt, CFO
Slide 2: Net inflow and customer growth more than doubled in 2020
Net inflow and customer growth more than doubled in 2020 350 000 80 000 300 000 70 000 60 000 250 000 Net inflow, SEK m New customers 50 000 200 000 40 000 150 000 30 000 100 000 20 000 50 000 10 000 0 0 2016 2017 2018 2019 2020 Customer growth Net inflow 2
Slide 3: High customer activity throughout the year
3 No of commission-generating customers 0 200 000 300 000 500 000 600 000 100 000 400 000 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 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
Slide 4: Strong market shares – largest Swedish participant
Market share, % 4 0,0 5,0 15,0 20,0 25,0 10,0 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 Transactions Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Market share, % 0,0 1,0 2,0 3,0 4,0 5,0 6,0 8,0 9,0 7,0 10,0 on Nasdaq OMX and First North Q1-15
Slide 5: 19.4% of the net inflow to the Swedish savings market rolling 12M
19.4% of the net inflow to the Swedish savings market rolling 12M Long-term target by 2025 of at least 15% 5
Slide 6: Significant growth potential with a total 5.4% market share
Significant growth potential with a total 5.4% market share Capital on the savings market 3,491 SEK bn* Avanza's share 2,190 SEK bn 1,310 SEK bn 1,145 SEK bn 1,139 SEK bn 1.0% 1.0% 2.9% 17.1% 9.5% 7.5% Individual pensions & Occupational pensions & Deposits/savings Mutual funds Shares, bonds and othe
Slide 7: Largest improvements in the customer experience 2020
Largest improvements in the customer experience 2020 • Avanza Europe added to our range of low-fee index funds • Fund pages improvements, including more sustainability data and the sustainability stamp • Two well received actively managed funds, a tech fund and a small cap fund, together with very s
Slide 8: Recognitions throughout the year
Recognitions throughout the year • Avanza won the Swedish Quality Index award for the eleventh consecutive year – with a larger margin than ever and an NPS of 67 • The No. 1 position in the industry and No. 6 overall in Kantar Sifo’s reputation index • Named “Bank of the Year” for the third year in
Slide 9: Target fulfillment 2020
Target fulfillment 2020 Long-term targets Outcome 2020 Sweden’s most satisfied savers according to Swedish Quality Index √ Engaged employees, eNPS of at least 45, raised to 50 69 Market share of least 15 per cent 19,4%* R 12M of the total net inflow to the Swedish savings market 2025 Market share of
Slide 10: Customer satisfaction and employee engagement key to drive shareholder value
Customer satisfaction and employee engagement key to drive shareholder value Long-term target Customer proposition High customer satisfaction Superior user experience Growth potential Revenues and costs Broader customer groups, but also High scalability strong potential with existing customers 10
Slide 11: Financials
Financials Q4 and full year 2020 results 11
Slide 12: Financial overview
Financial overview Q4 20 Q3 20 ∆% 2020 2019 ∆% Operating income, SEK m 706 575 23 2,349 1,193 97 Operating expenses, SEK m -221 -177 25 -763 -666 15 Operating profit, SEK m 486 396 23 1,576 520 203 Operating margin, % 69 69 0 67 44 24 ROE, % 58 55 2 57 27 30 EPS, SEK 2.70 2.15 26 8.66 2.94 195
Slide 13: Quarterly revenue development
Quarterly revenue development 900 800 700 643 600 575 542 526 Revenue, SEK m 500 400 313 329 300 271 267 268 284 244 267 200 100 0 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Total income Income from sales of shares in Stabelo Net brokerage income Income from mutual funds
Slide 14: Annual revenue development
Annual revenue development 3 000 2 500 2 286 2 000 Revenue, SEK m 1 500 1 193 1 049 1 000 909 975 500 0 2016 2017 2018 2019 2020 Total income Income from sales of shares in Stabelo Net brokerage income Income from mutal funds Net interest income Other income
Slide 15: Quarterly cost development
Quarterly cost development 200 205 185 179 164 166 179 164 Operating expenses, SEK m 152 153 148 150 155 135 100 50 0 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20 Q2-20 Q3-20 Q4-20 Total expenses Non-reccuring items Personnel Marketing Depreciation Other expenses 15
Slide 16: Annual cost development
Annual cost development 800 734 700 657 600 594 Operating expenses, SEK m 535 500 443 400 300 200 100 0 2016 2017 2018 2019 2020 Total expenses Non-reccuring items Personnel Marketing Depreciation Other expenses
Slide 17: Leading cost position
Leading cost position 160 600 000 142 140 500 000 120 Savings capital, SEK m 400 000 Basis points 100 73 80 300 000 60 51 200 000 40 100 000 20 17 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Savings capital Income/savings capital Cost/savings capital In 2
Slide 18: Available distribution power a lot higher than proposed dividend of 0.85 SEK per share
Available distribution power a lot higher than proposed dividend of 0.85 SEK per share SEK m 31 December 31 December 2020 2019 Shareholders equity, SEKm 2,678 1,865 Total capital ratio 24.4 17.8 Regulatory capital requirements*, % 13.5 14.4 Proposed dividend 0,85 SEK/share 132 354 Leverage ratio,%**
Slide 19: Tech Overview
Tech Overview Peter Strömberg - CIO 19
Slide 20: Harmonisation and autonomy are key to…
Harmonisation and autonomy are key to… High scalability Less legacy Prepare us for the future 20
Slide 21: Harmonisation gives us focus
Harmonisation gives us focus • One language • One solution for data storage • One tech stack for web • One type of architecture • One solution for deployment • One Design System 21
Slide 22: Harmonisation creates efficiencies
Harmonisation creates efficiencies • Solve tech problems ONCE and use many times • Developer experience creates speed and attract talent • Solving problems and innovate cross teams • Tech competence mobility within Avanza • Faster development cycles • Focus to find and attract talent externally 22
Slide 23: Autonomy leads to…
Autonomy leads to… • Independent cross functional teams, back logs and technologies • Decentralises decisions and responsibilities to focus on innovation • Makes our tech ecosystem less complex • Speed of innovation • Teams can focus on the team and output • Taking out legacy is easier. The culture
Slide 24: Simplicity makes us well prepared for the future
Simplicity makes us well prepared for the future • PWA (Progressive Web Apps) • More 3rd party integrations (Open Banking) • More Cloud integration where needed • Always IT and information security • Data analysis and business used cases, utilising the Data platform • Performance and capacity are ke
Slide 25: There is a new dawn….
There is a new dawn…. • Continue the journey and have the courage to cut out legacy, re-invent our model both technology and how we work • Constantly review and challenge areas going forward, buzz words too • Try, experiment – repeat • Think platform, trough autonomy and harmonisation • Technology a
Slide 26: Avanza Tech - towards our vision and goals
Avanza Tech - towards or vision and goals Innovation Availability Scale Together
Slide 27: We have been writing history for the last 20 years
We have been writing history for the last 20 years from a business and tech perspective. We plan to continue to do that.
Slide 28: Questions
Questions Rikard Josefson, CEO Birgitta Hagenfeldt, CFO