Avanza Bank Holding Ab · OMXSTO:AZA
Avanza Bank Holding Ab — Q4 2023 Earnings Presentation
19 slides from Avanza Bank Holding Ab's earnings presentation, Jan 19, 2024
Slide 1: Avanza's year-end and fourth quarter 2023 Results presentation
19 January 2024 Avanza’s year-end and fourth quarter 2023 Results presentation
Slide 2: Customers prioritised saving through difficult times – strongest net inflow in the industry
Avanza’s customers have prioritised saving through difficult times – strongest net inflow in the industry Net inflow to the Swedish savings market and Avanza 600 000 Swedish households’ 500 000 savings ratio has been decreasing, but at Avanza we’ve seen an opposite 400 000 trend during 2023 300 000
Slide 3: Strong net inflows build long-term growth
Strong net inflows build long-term growth Net inflow 100 000 More than three times 2022 SEK 72.3 bn 90 000 80 000 net inflow in 2023 70 000 of which18.1 bn in Q4 60 000 50 000 124,400 customers 40 000 acquired in 2023 30 000 of which 27,900 in Q4 20 000 10 000 0 3
Slide 4: 35% of the net inflow to the Swedish fund market in 2023 came to Avanza
35% of the net inflow to the Swedish fund market in 2023 came to Avanza Fund capital 300 000 250 000 200 000 SEK million 150 000 100 000 50 000 0 2018 2019 2020 2021 2022 2023 4
Slide 5: Well positioned once optimism returns
Well positioned once optimism returns 2023 450 170 000 1 200 000 440 160 000 1 000 000 430 150 000 420 800 000 140 000 410 400 130 000 600 000 390 120 000 400 000 380 110 000 370 200 000 100 000 360 0 350 90 000 OMXSGI (LHS) Brokerage-generating notes per trading day (RHS) Brokerage-generating custo
Slide 6: The largest Swedish participant in stock market transactions and turnover
The largest Swedish participant in stock market transactions and turnover on Nasdaq OMX and First North o Market share of 18.3% in terms of transactions in Q4 – affected by an increased share of institutional trading Transactions Transactions 21% 25% 18% 20% 15% 15% 12% 9% 10% 6% 5% 3% 0% 0% Q4-22 Q
Slide 7: Strong results and performance on the annual targets
Strong results and performance on the annual targets o Sweden’s most satisfied savers according to SQI for 14 consecutive years o eNPS of 58 o Return on equity of 38% o Proposed dividend of 91% – above our dividend policy o Net zero emissions target validated by SBTi o Sustainability score of custom
Slide 8: Focus areas going forward – still striving towards a market share of 10 per cent
Focus areas going forward – still striving towards a market share of 10 per cent o Ensure stability on the platform o Strengthen the offering for our most active customers o Activating existing customers and helping new customers get started o Keep improving our pension offering o Costs and internal
Slide 9: Financials – full year and Q4 results
Financials – full year and Q4 results 9
Slide 10: Strong results and return on equity well above target
Strong results and return on equity well above target Q4 23 Q3 23 ∆% 2023 2022 ∆% Operating income, SEK m 882 854 3 3,437 2,973 16 Operating expenses, SEK m -306 -266 15 -1,148 -1,031 11 Operating profit, SEK m 580 588 -1 2,292 1,940 18 Net profit, SEK m 499 510 -2 1,982 1,666 19 Operating margin, %
Slide 11: Full-year operating income at record level
Full-year operating income at record level 4 000 3 500 3 437 3 301 3 000 2 973 Revenue, SEK m 2 500 2 286 2 000 1 500 1 193 1 000 500 0 2019 2020 2021 2022 2023 Total income Income from sales of shares in Stabelo Net brokerage income Income from mutual funds Net interest income Other income Currency
Slide 12: Operating income mainly driven by net interest income
Operating income mainly driven by net interest income 1 000 957 900 868 882 824 847 833 854 800 754 767 768 740 643 Revenue, SEK m 700 618 600 500 400 300 200 100 0 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 Total income Income from sales of shares in Stabelo Net b
Slide 13: Peak rates might have been reached
Peak rates might have been reached 800 Volumes, SEK bn 750 431 700 +57 650 404 +20 600 390 550 500 349 450 485 400 428 350 356 Surplus-liquidity Surplus-liquidity SEK million 300 279 of SEK 45.2 bn of SEK 47.8 bn 250 200 63.4 150 61.3 100 176 195 204 224 50 0 -12 -11 -11 -5 -50 -95 11.4 11.5 -100 -1
Slide 14: Seasonally low personnel cost in the third quarter
Seasonally low personnel cost in the third quarter 306 300 289 287 272 273 253 266 249 250 238 Operating expenses, SEK m 205 212 216 192 200 150 100 50 0 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 Total expenses Non-reccuring items Personnel Marketing Depreciation
Slide 15: Full-year costs below communicated ceiling of SEK 1,160 million
Full-year costs below communicated ceiling of SEK 1,160 million 1400 1 148 1200 1 031 Operating expenses, SEK m 1000 874 734 800 657 600 400 200 0 2019 2020 2021 2022 2023 Total expenses Non-recurring items Personnel Marketing Depreciation Other expenses 15
Slide 16: Continued cost cautiousness in 2024
Continued cost cautiousness in 2024 o Maintaining the current people plan with only small adjustments o Focus on internal efficiency o Estimated cost increase of 9.5% for 2024 – Inflation the main cost driver giving higher personnel costs and costs for licenses and information
Slide 17: Strong capitalisation also after proposed dividend of 11.50 SEK per share
Strong capitalisation also after proposed dividend of 11.50 SEK per share 31 December 2023 31 December 2022 Consolidated situation % SEK m % SEK m Total capital ratio / Own funds 24.7 3,574 26.2 3,402 Total capital requirement1) 18.2 2,631 15.1 1,961 Capital surplus 6.5 943 11.1 1,441 Leverage ratio
Slide 18: Well positioned for the future
Well positioned for the future o Carefully maintaining our low-risk balance sheet with the ROE target of at least 35% o Continued strong focus on cost cautiousness o Strong result and strong net inflows show resilience in the customer base also in a challenging macro environment o Well positioned th
Slide 19: Opening up for questions
19 Opening up for questions 4 Avanza Glr Uw. 2 manader +294 5 ou sa World Tech °)(@) IN =" ° Q= ull QRz= ory Mer till dig, mindre till banken Hos oss ska dina pengar ga til ig sly, inte ‘il onodiga avgiter Alla som annu inte kommt ver 50 000 kr i samlat sparende hos 8 fér der tilbaka alla fondavgite