Avanza Bank Holding Ab · OMXSTO:AZA
Avanza Bank Holding Ab — Q3 2024 Earnings Presentation
22 slides from Avanza Bank Holding Ab's earnings presentation, Oct 18, 2024
Slide 1: Avanza's third quarter 2024 results presentation
Avanza's third quarter 2024 Results presentation avanzaulll Private Markets - onoterade tillgangar "Med via fonder nom Private Equly Prat ret och Rea set fr som Private Banking kun exist bora vac gtngig fr nettuionela ester (Chane i igre avkasting I on Med vara fonder ino kund exklusiv tillga Exklus
Slide 2: Key highlights from the third quarter
Key highlights from the 100,0 Second highest 9M net inflow ever third quarter 80,0 Net inflow Jan-Sep Net inflow Oct-Dec 61.2 60,0 • Strong growth figures and reached the important milestone 2 million customers 40,0 • High inflows to funds – 20 per cent of the market 20,0 inflow • Increased volatili
Slide 3: Financials – Q3 results
neeceetl| Financials — Q3 results
Slide 4: Strong results negatively impacted by one-offs
Strong results negatively impacted by one-offs Q3 24 Q2 24 ∆% 9M 24 9M 23 ∆% Operating income, SEK m 959 929 3 2,838 2,555 11 Operating expenses, SEK m -300 -341 -12 -944 -842 12 Operating profit, SEK m 658 588 12 1,893 1,713 11 Adjusted operating profit, SEK m 679¹) 6182) 10 1,9441)2) 1,713 14 Prof
Slide 5: Highest quarterly income in the history of Avanza
Highest quarterly income in the history of Avanza 1 000 959 951 929 900 868 882 847 854 824 833 800 767 768 740 Income split Q3 2024, % 700 Other 618 Brokerage Revenue, SEK m 600 5 24 500 40 400 NII 20 300 Funds 11 200 Currency 100 0 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-24
Slide 6: Growing fund volume contributing to all-time high fund commissions
Growing fund volume contributing to all-time high fund commissions Fund margin increased during the quarter, Net fund commissions at all-time high despite higher share of index funds 0,400% 50% 250 350 0,350% 45% 300 40% 200 0,300% 35% 250 SEK billion SEK million 0,250% 30% 150 200 0,200% 25% 20% 15
Slide 7: Policy rate decreases continue to put pressure on NII
Policy rate decreases continue to put pressure on NII 431 409 398 2 388 Average interest rates 404 -32 Q2 24 Q3 24 Internally financed Internally financed 390 lending: 4.44% lending: 4.30% 349 Deposits: 1.88% Deposits: 1.70% 485 480 471 439 428 356 279 Volumes, SEK bn SEK million 195 204 224 233 231
Slide 8: Costs on track with the full-year guidance
Costs on track with the full-year guidance 350 341 306 303 300 300 289 287 272 273 266 Operating expenses, SEK m 253 249 Cost split Q3 2024, % 250 238 One-off items Other 4 200 192 29 150 Personnel 56 Depreciation 8 100 3 Marketing 50 0 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q3-23 Q4-23 Q1-
Slide 9: Strong capital position
Strong capital position 30 September 20241) 31 December 2023 Consolidated situation % SEK m % SEK m Total capital ratio / Own funds 24.7 3,615 24.7 3,574 Total capital requirement2) 18.2 2,667 18.2 2,631 Capital surplus 6.5 955 6.5 943 Leverage ratio / Tier 1 Capital 4.8 3,622 5.0 3,574 LR-requireme
Slide 10: Strategic priorities 2030
neEceetl Strategic priorities 2030
Slide 11: Attractive long-term growth prospects in Sweden
Attractive long-term growth prospects in Sweden The Swedish savings and investment market is large, growing and advanced • The largest market in the Nordics, comprising SEK 12,000 billion¹ • Higher growth projections than most European markets • EU’s highest share of household financial assets inves
Slide 12: Ambition is to grow savings capital in Sweden by 15 per cent annually
Ambition is to grow savings capital in Sweden by 15 per cent annually Savings capital annual growth ambition 6-7% 15% • Annual growth of 15 per cent means a savings capital over 2,000 billion by 2030 • Market appreciation effect estimated at 5 per 3-4% cent – low compared to historical average • Ann
Slide 13: Strategic priorities for sustained strong growth towards 2030
Strategic priorities for sustained strong growth towards 2030 Develop and grow the leading position in our core A. business – savings and investments in Sweden AUM growth of on average 15% per year in Sweden, B. Achieve market leadership in Private Banking resulting in a total savings capital above
Slide 14: Further strengthen our core business with focus on increasing share-of-wallet
A. Further strengthen our core business with focus on increasing share-of-wallet Starting point • Over 2 million customers and a very low churn of around 1% • A young customer base that will accumulate wealth over time • Significant opportunities in the intergenerational wealth transition • Many cus
Slide 15: Significant opportunity to increase addressable market
A. Significant opportunity to increase addressable market Do-it-for-me Help-me-do-it Do-it-myself Limited offering and A segment we the last Historically our more to explore (only decade have been core customers • Historically, Avanza has focused on Auto funds today) successful expanding the do-it-m
Slide 16: Strong potential to gain market share within the traditional Private Banking segment
B. Strong potential to gain market share within the traditional Private Banking segment Starting point • Superior digital customer experience and competitive pricing • 15% per cent market share – 4th largest – in number of customers • Strong willingness to recommend among current customer base • Few
Slide 17: Accelerate growth within occupational pension
C. Accelerate growth within occupational pension Starting point • Competitive offering both when it comes to price, user experience and investment universe • A Swedish pension system that is perceived difficult, and where the individual is expected to take greater responsibility • The capability and
Slide 18: Increase efforts to fuel further growth by improving flexibility, cost efficiency and scalability
D. Increase efforts to fuel further growth by improving flexibility, cost efficiency and scalability Starting point • Sector leading cost efficiency with a costs to savings capital ratio of 15 bps • A uniform and modern tech stack with one programming language, one API framework and one way to build
Slide 19: Expand into new geographical markets
E. Expand into new geographical markets Starting point • Avanza is today the clear market leader and by far the most successful digital savings and investments platform in Sweden – arguably the most developed and competitive market in Europe • Democratised savings and investments in Sweden • Leading
Slide 20: New 2030 targets to illustrate growth potential and ambition
New 2030 targets to illustrate growth potential and ambition • Customer satisfaction and employee engagement targets unchanged – critical to drive shareholder value • Avanza’s strategic priorities will accelerate future growth. The ambition is to grow savings capital in Sweden with an average of 15%
Slide 21: 2030 targets overview
2024 1 Sustain our no. 1 customer satisfaction position 1 2030 Maintain our unique corporate culture and high 2024 employee engagement 2030 Strengthen our position as the no. 1 savings 2024 and investment platform in Sweden 2030 2024 900 + More than double customer savings capital 2,000 + 2030 Take
Slide 22: Opening up for questions
neEceetl Opening up for questions