Avanza Bank Holding Ab · OMXSTO:AZA
Avanza Bank Holding Ab — Q2 2023 Earnings Presentation
21 slides from Avanza Bank Holding Ab's earnings presentation, Jul 14, 2023
Slide 1: Avanza's second quarter 2023 Results presentation
14 July 2023 Avanza’s second quarter 2023 Results presentation
Slide 2: Long-term growth is built by strong net inflows
Long-term growth is built by strong net inflows Net inflow 100 000 SEK 33.1 bn 90 000 80 000 Already above 2022 net inflow in 2023 full-year levels 70 000 of which 16.1 bn in Q2 60 000 50 000 40 000 65,200 customers 30 000 acquired in 2023 20 000 of which 24,000 in Q2 10 000 0 2
Slide 3: Strong net inflows month by month, largely driven by the standard segment
Strong net inflows month by month, largely driven by the standard segment 10 2022 2023 8 6 4 SEK billion 2 0 -2 -4 -6 -8 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 3
Slide 4: Market share of 23% of net savings to the Swedish savings market in Q1 2023
Market share of 23% of net savings to the Swedish savings market in Q1 2023 Swedish savings market Net inflow Net inflow, R12m 30% 20% Avanza market share, % 10% Target 2025 is 10% 0% Q1-18 Q2-22 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q2-18 Q3
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 19.2% in terms of transactions in Q2 2023, and 6.3% in terms of turnover 21% 12% 19.2% 18% 10% 15% 8% 12% 6,3% 6% 9% 4% 6% 3% 2% 0% Q1-22 0% Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q1-16 Q2-16 Q3-16 Q4
Slide 6: Trading activity correlated with market sentiment
6 0 5 10 15 20 25 30 35 40 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Brokerage-generating notes per brokerage-generating customer Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 VIX quar
Slide 7: … and we see no clear seasonal pattern
… and we see no clear seasonal pattern Number of brokerage-generating notes per trading day 350 000 300 000 250 000 200 000 150 000 100 000 50 000 0 7
Slide 8: Strong correlation between brokerage and turnover in brokerage-generating notes
Strong correlation between brokerage and turnover in brokerage-generating notes 500 450 000 450 400 000 400 350 000 Net brokerage, SEK m Turnover, SEK m 350 300 000 300 250 000 250 200 000 200 150 000 150 100 100 000 50 50 000 0 0 Q3-19 Q4-20 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-
Slide 9: 1,841,900 customers – a diversified customer base
1,841,900 customers – a diversified customer base Our customers have different types of behaviours and needs – our offering includes something for everyone Novice Save Invest Trade For fun Risk-averse, is not Takes an interest in Very interested in Professional trader, Sees investing as a active and
Slide 10: Customer behaviour in current market conditions
Customer behaviour in current market conditions o Customers are prioritising their savings – monthly savings stable at 1.5 bn o Recurring occupational pension premiums averaged SEK 355 million R12M o New customers 2023 behave and look the same as previously acquired customers o Share of liquidity of
Slide 11: Highlights from the second quarter
Highlights from the second quarter o Launched a new actively managed fund, Avanza Healthcare by Samuelsson & Hult – our second article 9-fund o New decision-making tools • Added more sustainability data for stocks • Possibility to access report presentations through collaboration with Quartr o Our “
Slide 12: As always… key success factors for Avanza
As always… key success factors for Avanza Employee engagement key 12
Slide 13: Financials – Q2 results
13 Financials — Q2 results avanzaulll
Slide 14: Solid results in a challenging macro environment
Solid results in a challenging macro environment Q2 23 Q1 23 ∆% H1 23 H1 22 ∆% Operating income, SEK m 833 868 -4 1,701 1,385 23 Operating expenses, SEK m -287 -289 -1 -577 -520 11 Operating profit, SEK m 546 579 -6 1,125 865 30 Net profit, SEK m 472 501 -6 973 739 32 Operating margin, % 66 67 -1 66
Slide 15: Well diversified income streams
Well diversified income streams 1 000 957 900 847 868 824 833 800 754 767 768 643 740 700 Revenue, SEK m 618 575 600 526 500 400 300 200 100 0 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Total income Income from sales of shares in Stabelo Net brokerage income Income
Slide 16: Net interest income mainly driven by surplus liquidity
Net interest income mainly driven by surplus liquidity 600 390 Volumes 550 500 +77 349 +19 450 400 356 350 300 279 SEK million 250 Surplus-liquidity Surplus-liquidity of SEK 42.9bn 200 of SEK 38.9bn 150 59.2bn 55.4bn 100 176 195 50 0 -12 -11 11.4bn 11.2bn -50 -95 -100 -150 8.5bn 7.9bn -150 -56 +1 -2
Slide 17: Cost development according to plan
Cost development according to plan 300 289 287 272 273 253 249 250 238 Operating expenses, SEK m 205 212 216 185 192 200 164 150 100 50 0 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 Q1-22 Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Total expenses Non-reccuring items Personnel Marketing Depreciation Other expenses 1
Slide 18: Strong capitalisation – well above regulatory requirements
Strong capitalisation – well above regulatory requirements Consolidated situation 30 June 2023 31 December 2022 Total capital ratio, % 28.2 26.2 Total capital requirement, %1) 16.1 15.1 Capital surplus, % 12.1 11.1 Leverage ratio, % 5.4 5.5 Capital surplus after LR-requirement and P2-guidance 1.5 1.
Slide 19: Low-risk loan book
Low-risk loan book Internally financed lending of o Funded through customer deposits spread across a very SEK 19,1 bn large number of households Private Bankning o All lending is secured mortgage o Mortgage lending limited to 25 per cent of liquidity o Private Banking mortgage requires SEK 3 million
Slide 20: Well positioned for the future
Well positioned for the future o Strong resilience in a challenging macro environment o Focus on operational efficiency and cost development o Carefully maintaining our low-risk balance sheet 20
Slide 21: Opening up for questions
21 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