Nordnet Ab · OMXSTO:SAVE
Nordnet Ab — Q4 2024 Earnings Presentation
41 slides from Nordnet Ab's earnings presentation, Jan 28, 2025
Slide 1: Nordnet Q4 2024 Results presentation
Nordnet Q4 2024 Results presentation
Slide 2: Key highlights fourth quarter 2024
Key highlights fourth quarter 2024 Revenue and profit reach record Announcing the launch of a fifth levels, both in the quarter and full year market - Germany Opex (ex marketing boost) +7.7% in The highest customer growth and FY2024, includes SEK 10m related to net savings in three years prep for No
Slide 3: Financial highlights fourth quarter 2024
Financial highlights fourth quarter 2024 Customers Savings capital Number of trades Thousands SEKbn Million +14%3 +25% +14% 2,096 1,032 13.8 1,863 825 12.1 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Adjusted revenues Adjusted operating expenses Adjusted profit before tax SEKm1 SEKm1 SEKm1 +11%
Slide 4: Financial highlights full year 2024
Financial highlights full year 2024 Customers Savings capital Number of trades Thousands SEKbn Million +14%3 +25% +8% 2,096 1,032 52.9 1,863 48.9 825 Q4 2023 Q4 2024 Q4 2023 Q4 2024 2023 2024 Adjusted revenues Adjusted operating expenses Adjusted profit before tax SEKm1 SEKm1 SEKm1 +12% +7.7% exclud
Slide 5: Clear rebound in customer growth and net savings
Clear rebound in customer growth and net savings New customers by month1 Net savings per month Thousands SEKbn 2023 2024 2023 2024 256 73 37 8 7 7 155 7 6 6 26 6 6 24 5 5 5 35 21 20 4 19 20 19 18 18 18 4 4 16 16 3 3 3 14 13 3 13 12 13 12 13 13 13 13 3 3 3 10 2 2 1 Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 6: Number of trading customers and share of all customers
Share of all customers 70% 10% 100% 30% 40% 50% 60% 80% 90% 20% 1Q|17 2Q|17 3Q|17 4Q|17 1Q|18 2Q|18 3Q|18 Trading customers 4Q|18 1Q|19 2Q|19 3Q|19 4Q|19 1Q|20 Average 2017-2022 2Q|20 Share of all customers 3Q|20 4Q|20 1Q|21 2Q|21 3Q|21 4Q|21 1Q|22 2Q|22 a multi-year high 3Q|22 4Q|22 1Q|23 2Q|23 3Q|
Slide 7: Trades per day have almost doubled since 2019
Trades per day have almost doubled since 2019 and each trade drives more revenue Trades per customer per trading day Total number of trades and net income/trade Trades per customer / day (LHS) Trades per day Cross border (m) Domestic (m) Net income / trade (SEK) 0.22 285,300 80 72 0.20 70 0.18 233,3
Slide 8: Leading Nordic fund supermarket
Leading Nordic fund supermarket Fund capital by country Fund capital by allocation1 SEKbn SEKbn ▪ Fund capital growing ~1.5X total savings capital Active Nordnet funds Other Sweden Norway Denmark Finland Index Fixed income ▪ One quarter of fund capital is Nordnet-branded 100 154 144 184 259 259 3% ▪
Slide 9: Liquidity portfolio snapshot: ~SEK1.25bn in 2025
Liquidity portfolio snapshot: ~SEK1.25bn in 2025* *Assumes 4Q 2024 volume, currency allocation, credit spreads and market consensus estimates for 3M fwd IBOR development. Volume SEKbn 1 ~SEK 1,650m ~SEK 1,680m ~SEK 1,250m Deposits Lending Other/equity Net interest income 50 47 45 42 43 47 452 449 43
Slide 10: Loan portfolio snapshot: ~SEK1.2bn in 2025
Loan portfolio snapshot: ~SEK1.2bn in 2025* *Assumes 4Q 2024 volume, interest as per 1st of January, 3M fwd IBOR consensus estimates and passthrough of; Margin lending (50%), Mortgage (100%) Volume1 Unsecured Mortgage Margin lending SEKbn ~SEK 1,350m ~SEK 1,560m ~SEK 1,200m Net interest income 30.9
Slide 11: Deposit interest cost snapshot: SEK 400m in 2025
Deposit interest cost snapshot: SEK 400m in 2025* * Assumes 4Q 2024 volume with 100% passthrough of 3M fwd IBOR changes. Assumes that interest on non-savings account deposits remains at 4Q 2024 levels. Development savings accounts Share of deposits SEKbn Dec 24 SE NO DK FI 17.6 18.2 17.7 42% Interes
Slide 12: Business model with great operating leverage
Business model with great operating leverage Adjusted revenue Adjusted operating expenses³ Adjusted profit before tax SEKm SEKm SEKm 44 61 53 46 59 54 32 24 17 17 17 15 25 59 67 63 69 70 5,094 4,550 3,626 3,560 3,382 3,160 2,689 2,403 2,115 1,524 1,455 1,576 1,177 1,210 1,300 1,097 1,064 377 2019 20
Slide 13: Select Q4 2024 product highlights
Select Q4 2024 product highlights Flagship launch of “Livrente” in Denmark in October 32 new versions of Nordnet’s award-winning app well received and has started strong continuing to add customer-friendly functionality Monthly savings Fund swap Launch of PartnerWeb for Nordnet’s B2B2C business 16
Slide 14: Livrente update (2025-01-24)
Livrente update (2025-01-24) Since launch (2024-10-29) 1,627 Customers1 SEK 356m Savings capital 1,404 Initiated transfers2 SEK 1,172m Initiated transfers2 (1) Gross figures, 877 customers currently have capital; (2) initiated transfers are a mix of 30% pure Livrente and 70% mix Livrente/Rate Pensio
Slide 15: New brand concept: The Joy of Savings
New brand concept: “The Joy of Savings”
Slide 16: Capital and liquidity situation
Capital and liquidity situation
Slide 17: Strong capital situation creates flexibility
Strong capital situation creates flexibility Regulatory metrics* In 2024 we have: 70.0 Consolidated situation Actual (vs req.) Requirement ▪ Reduced AT1 capital by SEK 500m Deposits in SEKbn Total capital ratio 24.3% (+8.9pp) 15.5% CET1 ratio 19.6% (+9.0pp) 10.7% ▪ Paid SEK 1.8bn in dividends Levera
Slide 18: Introducing Nordnet's 5th market: Germany
Introducing Nordnet’s 5th market: Germany 21
Slide 19: Germany is a natural next step for Nordnet
Germany is a natural next step for Nordnet Addressable market 2x the Nordics with ample growth and Large and growing market increasing equity participation Attractive German savers value trust, transparency, great UX and a market complete product selection – consistent with Nordnet’s brand Good fit
Slide 20: The German market is large with assets and equity participation growing rapidly
The German market is large with assets and equity participation growing rapidly Share of adult population owning Addressable market A market with great fundamentals stocks or funds SEKtln Million 17% of adult population Half a million potential customers enter the market each year CAGR +4% CAGR +8%
Slide 21: Doubling the addressable market to secure a long runway for growth
Doubling the addressable market to secure a long runway for growth Addressable market size by country 2023 ~2.4x SEKtln ~38 ~2.7x Extended market for Finnish wrapper Extended market for ~2.1 ~15.9 Danish Livrente ~5.6 ~0.4 ~1.7 ~2.4 ~2.0 ~2.2 ~6.0 ~13.5 Nordic addressable market Source: SCB, Svensk
Slide 22: Nordnet's proposition is the key to success in any market
Nordnet’s proposition is the key to success in any market Overall One stop Customer competitive shop x experience x price always building on Trust 25
Slide 23: Exporting the one-stop shop playbook
Exporting the one-stop shop playbook Securities brokerage ✓ ✓ ✓ ✓ ✓ Superior UX, attractive & transparent pricing, extend trading to more exchanges Funds ✓ ✓ ✓ ✓ ✓ Lead with in-house funds adapted to local market, enhance ETF offering Pension ✓ ✓ ✓ ✓ Not in scope initially, longer term optionality w
Slide 24: Utilize existing infrastructure for an efficient launch
Utilize existing infrastructure for an efficient launch Preparation Launch Growth Profitable growth 2025 2026 2027-2029 2030- • Establish branch • Tech implementation • End of “resource surge” • Independent local operation • Recruit key personnel • Conceptual offering • Break-even ~2029 • Critical m
Slide 25: Germany is an attractive, growing fifth market
Germany is an attractive, growing fifth market to add to Nordnet’s Northern European footprint Large TAM which extends growth runway and provides revenue optionality at relatively low cost German market is a good fit for Nordnet’s USPs to leverage existing strengths and digital platform Nordnet has
Slide 26: Updated medium-term financial targets
Updated medium-term financial targets Target Previous Customer growth1 Average savings capital per customer2 Shareholder remuneration % SEK (‘000) 31% Around SEK500k Deliver superior shareholder returns 477 476 416 444 435 (SEK420k) through a dividend payout ratio of 70% 15% 14% 13-15% p.a. 10% 9% (
Slide 27: Key priorities for 2025
Key priorities for 2025 Lay groundwork for launch of Nordnet Germany. Realize potential in new Livrente product. Continue strong net flows in the fund and pension business. Enhance high-end offering for private banking and active trading customers. Pan Nordic roll-out of new brand campaign. Maintain
Slide 28: Thank you
Thank you
Slide 29: Financial highlights fourth quarter 2024
Financial highlights fourth quarter 2024 SEKm unless otherwise stated Q4 2024 Q3 2024 QoQ % Q4 2023 YoY % Condensed P&L1 Adjusted total income 1,316 1,226 7% 1,189 11% Adjusted operating expenses (391) (358) 9% (335) 17% Adjusted profit before tax 919 852 8% 830 11% KPIs New customers +69,5002 +74,7
Slide 30: Summary P&L
Summary P&L SEKm Q4 2024 Q3 2024 QoQ % Q4 2023 YoY % Adjusted total income 1 316 1 226 7% 1 189 11% Adjusted operating expenses (391) (358) 9% (335) 17% Net credit losses (2) (13) (85%) (23) (92%) Imposed levies: Resolution fees (3) (3) 0% (2) 61% Adjusted profit before tax 919 852 8% 830 11% Items
Slide 31: Items affecting comparability
Items affecting comparability SEKm 2024 2023 2022 2021 2020 2019 2018 2017 Non-recurring items – Expenses Delisting from Nasdaq (45) Acquisition of Netfonds (35) (16) Deduction right VAT 38 (20) (30) AML process upgrade (19) IPO related expenses (109) Sanction SFSA (100) Divestment unsecured lending
Slide 32: Items affecting comparability 2024
Items affecting comparability 2024 Operating income Operating Expenses Profit before taxes SEKm SEKm SEKm 5,152 -58 5,094 +191 -56 3,560 +155 1,646 3,482 -58 +36 -155 -36 1,455 -191 56 45 +7.7% 1,300 45 1,354 1,399 1,254 Statutory IAC Adjusted Statutory IAC Adjusted 2023 Statutory Income Opex Credit
Slide 33: Strong customer satisfaction driving market share gains
Strong customer satisfaction driving market share gains Customer satisfaction remains at high levels in all countries… NPS …which translates into increasing market shares across our geographies Market share based savings capital in relation to total addressable market 2022 2023 9.0% 9.8% 5.9% 6.3% 5
Slide 34: Nordnet has a capital light business model
Nordnet has a capital light business model Nordnet’s income model Off balance sheet On balance sheet Liquidity portfolio Credit portfolio Savings capital SEK ~1 032bn SEK ~47bn SEK ~29bn ~68% ~25% ~7% ~61% ~39% Margin Shares Funds Deposits Mortgage lending3 Net commission Net commission ~28 bps1 ~25
Slide 35: Strong cost to income ratio and attractive return on equity
Strong cost to income ratio and attractive return on equity Adjusted cost income ratio Adjusted return on equity 90% 84% 60% 77% 80% 72% 50% 45% 70% 44% 43% 40% 60% 40% 36% 50% 40% 30% 40% 36% 31% 29% 29% 30% 20% 13% 20% 10% 10% 7% 10% 0% 0% 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 202
Slide 36: New customers are younger, higher share of women and own more funds
New customers are younger, higher share of women and own more funds Share of customers per cohort and age1 Share of customers by cohort and gender % 4Q24 | (‘000) Male Female Corporation Pre 2020 2020-2021 2022-2023 2024 2 096 5.0% 835 665 330 266 2 096 13% 2024 3% 2% 3% 3% 3% 4.0% 16% 2022-2023 28%
Slide 37: New customers remain active, grow net savings and drive high margins
New customers remain active, grow net savings and drive high margins Revenue margin 2024 Share of cross-border trades 2024 bps % | million trades 90 33.8 10.2 6.5 2.6 52.9 27% 36% 37% 38% 30% Cross-border 60 48 53 53 Pre 2020 2020-2021 2022-2023 2024 All Pre 2020 2020-2021 2022-2023 2024 All Share o
Slide 38: Recovery in customer growth and savings ratio
40% 60% 30% 50% 0% 10% 20% 0.25 0.05 0.15 0.20 0.30 0.00 0.10 quarter 1Q11 1Q11 2Q11 2Q11 3Q11 3Q11 4Q11 4Q11 1Q12 1Q12 2Q12 2Q12 3Q12 3Q12 4Q12 4Q12 1Q13 1Q13 2Q13 2Q13 3Q13 3Q13 4Q13 4Q13 1Q14 1Q14 2Q14 2Q14 3Q14 3Q14 Annualised growth (LHS) 4Q14 4Q14 1Q15 1Q15 2Q15 2Q15 3Q15 3Q15 4Q15 4Q15 Annual
Slide 39: Strong liquidity position with good credit quality and balanced maturity profile
Strong liquidity position with and good credit quality and balanced maturity profile Exposure class Portfolio rating Maturity structure SEKbn % (S&P equivalent) SEKbn Unrealized result (SEKm) HTC -7.4 17.6 AFS1: +7.3 Gov/Gov reg/Supr. AA Covered AAA 8% 17% 12% A Sr./other 5% BBB 9% 11.1 0% 6% 2% 5%
Slide 40: Sustainability at core of strategy
Sustainability at core of strategy Democratize savings and investments ▪ Increase the general knowledge about personal finance ▪ Develop user-friendly and inspirational services for saving and investments ▪ A better gender distribution within savings and investments Sustainable savings ▪ Have a broa
Slide 41: Making it easier to invest more sustainably
Making it easier to invest more sustainably Make it easier for customers to Inspire and broaden the Have a broad set of invest more sustainably by sustainable savings and knowledge about creating digital and user- investment alternatives sustainable savings and friendly tools investments CO2-intensi