Avanza Bank Holding Ab · OMXSTO:AZA
Avanza Bank Holding Ab — Q1 2021 Earnings Presentation
22 slides from Avanza Bank Holding Ab's earnings presentation, Apr 20, 2021
Slide 1: Avanza's first quarter 2021 Results presentation
20 April 2021 Avanza’s first quarter 2021 Results presentation
Slide 2: Net inflow of SEK 30,500m in 2021 (+40% Y/Y)
Net inflow of SEK 30,500m in 2021 (+40% Y/Y) 14 12,9 2020 2021 12 10 9,0 8,6 SEK billion 8 6 4 2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 3: Customer growth of 152,800 in 2021 (+78% Y/Y)
Customer growth of 152,800 in 2021 (+78% Y/Y) 80 000 72 015 2020 2021 70 000 60 000 No.of new customers 50 000 46 042 40 000 34 773 30 000 20 000 10 000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Slide 4: Accelerated growth in brokerage generating customers
No of customers 0 100 000 200 000 300 000 400 000 500 000 600 000 700 000 800 000 Q1-10 Q3-10 Q1-11 Q3-11 Q1-12 Q3-12 Q1-13 Q3-13 Q1-14 Q3-14 Q1-15 Q3-15 Q1-16 Q3-16 Q1-17 Q3-17 Q1-18 Q3-18 Q1-19 Q3-19 Q1-20 Q3-20 Q1-21 Accelerated growth in brokerage generating customers
Slide 5: The largest Swedish participant on Nasdaq OMX and First North
The largest Swedish participant on Nasdaq OMX and First North o Market share of 20.7% in terms of transactions and 9.2% of turnover in Q1 2021 Transactions Turnover 25 10 9 20 8 Market share, % 7 15 6 5 10 4 3 5 2 1 0 0 Q1-15 Q3-15 Q1-16 Q3-16 Q1-17 Q3-17 Q1-18 Q3-18 Q1-19 Q3-19 Q1-20 Q3-20 Q1-21 Q1
Slide 6: Increasing share of foreign stock trading
Increasing share of foreign stock trading 30% 25% Share of total turnover, % 20% 15% 10% 5% 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 Q1-20 Q2-20 Q3-20 Q4-20 Q1-21
Slide 7: Size on Nasdaq and >1.4 million customers competitive advantages in Corporate Finance
Size on Nasdaq and >1.4 million customers competitive advantages in Corporate Finance o Record strong quarter within Corporate Finance o Acts as financial advisor, retail manager and retail distributor o Ensures corporates secondary market liquidity in the stock o Offer interesting investment opport
Slide 8: Extended Start offer now including funds
Extended Start offer now including funds o Includes customers with a savings capital never exceeded SEK 50,000 o All fund fees will be refunded, including any exchange fees o Comprise all accounts, including pension accounts o The important with saving is to get going
Slide 9: Our customer base makes us the perfect partner for product challengers
Our customer base makes us the perfect partner for product challengers Mutual fund platform Mortgages Over 1,300 external funds Our partners deliver low Exchange traded products on the platform and Third party savings exclusive cooperations for interest mortgages through Exclusive exchange traded Hi
Slide 10: Further improved mortgage offer with Landshypotek
Further improved mortgage offer with Landshypotek o Offers mortgages at the time of purchase o Adds a higher loan to value ratio 0.6 % o Also mortgages for holiday homes 30 000 25 000 Volume, SEK m 20 000 15 000 10 000 5 000 Swedish mortgage market 0 SEK 3 641 billion 2013 2014 2015 2016 2017 2018 2
Slide 11: Improved transfer rights in pension now for real
Improved transfer rights in pension now for real o Competitiveness with no annual insurance fees and broad investment opportunities o The strong offer an advantage when the transfer right is improved to the benefit of 1.0 % the consumer 45 000 40 000 Savings capital, SEK m 35 000 30 000 25 000 20 00
Slide 12: Strong potential when wealth is transferred to the next generation
0,0% 0,5% 1,0% 1,5% 2,0% 2,5% 3,5% 3,0% 18 years 21 years 24 years 27 years 30 years 33 years 36 years next generation 39 years Avanza 38 Median age 42 years 45 years 48 years Sweden 48 Median age 51 years 54 years Sweden 57 years 60 years 63 years Avanza 66 years 69 years 72 years Age distribution
Slide 13: 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 and volume o Create possibilities for continued strong innovation Customer satisfaction Strong innovation
Slide 14: Financials – Q1 results
Financials — Q1 results avanzaulll
Slide 15: Record-strong quarter
Record-strong quarter Q1 21 Q4 20 ∆% Q1 20 ∆% Operating income, SEK m1) 957 706 36 542 77 Operating expenses, SEK m2) -202 -221 -8 -179 13 Operating profit, SEK m 756 486 56 361 109 Net profit, SEK m 632 418 51 305 107 Operating margin, % 79 69 10 67 12 ROE, % 74 58 16 64 9 EPS, SEK 4.08 2.70 51 1.9
Slide 16: Strong brokerage and FX income in the quarter
Strong brokerage and FX income in the quarter 1000 957 900 800 700 575 600 542 526 643 Revenue, SEK m 500 400 313 329 271 267 267 268 284 300 244 200 100 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 Q1-21 Total income Income from sales of shares in Stabelo Net brokerage
Slide 17: Strong correlation between number of notes and turnover in commission-generating notes
Strong correlation between number of and turnover in commission-generating notes 20 000 000 450 000 18 000 000 400 000 16 000 000 350 000 Turnover, SEK m 14 000 000 300 000 No. of notes 12 000 000 250 000 10 000 000 200 000 8 000 000 150 000 6 000 000 4 000 000 100 000 2 000 000 50 000 0 0 Q1-17 Q2-
Slide 18: Strong correlation between commission-generating notes and net brokerage
Strong correlation between number of commission- generating notes and net brokerage 20 000 000 500 18 000 000 450 Net brokerage income, SEK m 16 000 000 400 14 000 000 350 No. of notes 12 000 000 300 10 000 000 250 8 000 000 200 6 000 000 150 4 000 000 100 2 000 000 50 0 0 Q1-17 Q2-17 Q3-17 Q4-17 Q1
Slide 19: Costs affected by reversal of write-down in Q1
Costs affected by reversal of write-down in Q1 212 200 185 179 205 164 166 152 153 179 164 148 Operating expenses, SEK m 150 135 155 100 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 Q1-21 Total expenses Non-reccuring items Personnel Marketing Depreciation Other expens
Slide 20: Clearly demonstrates the scalability of Avanza's business model
Clearly demonstrates the scalability of Avanza’s business model 160 700 000 14 140 Savings capital, SEK m 600 000 120 500 000 Basis points 100 400 000 80 73 300 000 60 63 200 000 40 20 100 000 13 0 0 2005 2007 2004 2006 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021-3M Savings
Slide 21: Strong capital position with additional distribution capacity
Strong capital position with additional distribution capacity 31 March 31 December 2021 2020 Total capital requirement, %1) 13.4 13.5 Capital requirement buffer, % 10.5 10.9 Total capital ratio, % 23.9 24.4 Leverage ratio,%2) 4.3 4.9 Additional distribution capacity for 2020, 2.95 SEK/share, SEK m 4
Slide 22: Opening up for questions
Opening up for questions rat oF ya World Tech 4 ot e Avanza Gl¢ vev3minaers2% yf arzel,. paneuerrorei foamy r Waal Mer till dig, 7 mindre till banken "om den borde vara avanzaulll