Avanza Bank Holding Ab · OMXSTO:AZA
Avanza Bank Holding Ab — Q2 2022 Earnings Presentation
17 slides from Avanza Bank Holding Ab's earnings presentation, Jul 14, 2022
Slide 1: Avanza's second quarter 2022 Results presentation
14 July 2022 Avanza’s second quarter 2022 Results presentation
Slide 2: Deteriorating macro environment challenging for our customer and Avanza
Deteriorating macro environment challenging for our customer and Avanza o Inflation continue to increase – highest in 30 years o Rate hikes of 75 bps last four months o OMXSPI down 29% - worst half year since the 1930s
Slide 3: Growth has taken us to a higher level
Growth has taken us to a higher level Turnover in brokerage-generating securities per trading day 9 000 8 000 7 000 6 000 5 000 4 000 3 000 2 000 1 000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 2020 2021 2022
Slide 4: Net inflow of SEK 25 billion in 2022 (-53% Y/Y)
Net inflow of SEK 25 billion in 2022 (-53% 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
Slide 5: 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 16% in terms of transactions in Q2 2022, and 7% in terms of turnover 21% 80% 70% 18% 60% 15% 50% 12% 40% 9% 30% 6% 20% 3% 10% 0% 0% Q3-18 Q4-21 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16
Slide 6: Launched one of our largest projects ever
Launched one of our largest projects ever o New back-office system implemented o Several improvements to the user experience o Applied to Science Based Targets initiative for net zero emissions o Letter of intent with Safello cancelled o Ranked highest among banks and shared number five overall in S
Slide 7: Well positioned long term
Well positioned long term o Current macro environment challenging o Need for savings in society still greatly needed o Continue to invest in our user experience o Continued high NPS of >50
Slide 8: Employee engagement a key success factor for Avanza
Employee engagement a key success factor for Avanza Long-term targets Continuous growth o Customer satisfaction – keep the No 1 position o Continuous growth in both number of customers Customer satisfaction and volume o Create possibilities for continued strong innovation Strong innovation
Slide 9: Financials – Q2 results
Financials — Q2 results avanzaulll
Slide 10: Burdened, but almost tripled compared to pre pandemic
Burdened, but almost tripled compared to pre pandemic Q2 22 Q1 22 ∆% H1 22 H1 21 ∆% Operating income, SEK m 618 768 -20 1,385 1,710 -19 Operating expenses, SEK m1) -272 -249 9 -520 -419 24 Operating profit, SEK m 345 521 -34 865 1,292 -33 Net profit, SEK m 296 443 -33 739 1,082 -32 Operating margin,
Slide 11: Income affected by market environment and the decline in savings capital
Income affected by market environment and the decline in savings capital 1 000 957 900 824 768 754 767 800 700 618 575 600 542 526 643 Revenue, SEK m 500 400 329 313 284 300 200 100 0 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 Total income Income from sales of shar
Slide 12: Strong correlation in brokerage and turnover in commission-generating notes
Strong correlation in brokerage and turnover in commission-generating notes 500 450 000 450 400 000 400 350 000 Turnover, SEK m 350 300 000 Net brokerage, SEK m 300 250 000 250 200 000 200 150 000 150 100 100 000 50 50 000 0 0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q
Slide 13: Costs in line with plan
Costs in line with plan 300 272 253 249 250 212 216 185 192 Operating expenses, SEK m 200 179 205 164 166 148 179 150 164 100 50 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 Total expenses Non-reccuring items Personnel Marketing Depreciation Other expenses
Slide 14: High scalability although costs to savings capital ratio affected by market downturn
High scalability although costs to savings capital ratio affected by market downturn 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 38 200 000 20 14 100 000 0 0 Savings capital Income/savings capital Costs/savings capital
Slide 15: Strong capital position
Strong capital position 30 June 31 December 2022 2021 Total capital requirement, %1) 12.6 12.6 Capital surplus, % 11.4 11.4 Total capital ratio, % 24.0 24.0 Leverage ratio,% 4.4 4.8 Capital surplus after LR-requirement and internal buffer 0.6 1.0 1) Including external buffers and Pillar 2 requiremen
Slide 16: Well positioned for the future
Well positioned for the future o Low risk balance sheet – not affected by market turbulence o Well capitalised o Solid results given the circumstances – operating on a higher level o High interest rate sensitivity o Competitive costs to savings capital ratio
Slide 17: 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