Avanza Bank Holding Ab · OMXSTO:AZA
Avanza Bank Holding Ab — Q4 2024 Earnings Presentation
22 slides from Avanza Bank Holding Ab's earnings presentation, Jan 21, 2025
Slide 1: Avanza's full-year and fourth quarter 2024 results presentation
Avanza's full- year and fourth ~ quarter 2024 Results presentati
Slide 2: Key highlights from 2024
Key highlights from 2024 Second highest net inflow ever – 19% higher than 2023 100 90 CAGR 13% 85.8 • Sweden’s most satisfied savings customers for 15 80 consecutive years – and ranked top of the industry 70 SEK bn in all categories 60 50 • Strong growth figures and reached the important 40 mileston
Slide 3: Strong development of the fund business
Strong development of the fund business Net inflow to funds Fund capital is increasing, both in absolute numbers 50 and as share of total savings capital 41 40 400 40% 33 SEK bn 30 24 350 35% 20 15 10 300 30% 2 0 250 25% SEK bn 2020 2021 2022 2023 2024 200 20% Market share of the net inflow to funds
Slide 4: Increased customer activity across all segments
Increased customer activity across all segments Brokerage generating customers is increasing 800 000 700 000 • 12% more brokerage generating customers compared to 2023 600 000 • Highest share of foreign trading ever and the trend has been 500 000 ongoing for long 400 000 • Increased trading – spread
Slide 5: Strong performance on 2024 targets
Strong performance on 2024 targets Customer satisfaction Employee engagement Value growth Sustainability ✓ Sweden’s most satisfied ✓ Employee Net Promoter score ✓ Annual ROE of 38% – target is ✓ Sustainability score of savings customers according of 59 – target is 50 at least 35% customers investmen
Slide 6: Strategic priorities and targets for sustained strong growth towards 2030
Strategic priorities and targets for sustained strong growth towards 2030 A. Develop and grow the leading position in our core Long-term 2030 targets business – savings and investments in Sweden Sweden’s most satisfied savers according to the Swedish Quality Index B. Achieve market leadership in Pri
Slide 7: Ambition is to grow savings capital in Sweden by 15% annually
Ambition is to grow savings capital in Sweden Annual savings capital growth by 15% annually Savings capital grew by 22% in 2024 1 000 955 CAGR 19% 800 11% 600 400 5% 200 0 2020 2021 2022 2023 2024 10% 11% Close to three times higher front-book market share compared to back-book market share As of 30
Slide 8: Achieve market leadership within Private Banking
B. Achieve market leadership Willingness to recommend within Private Banking Avanza 4.28 Peer 1 Peer 2 • Acquisition of Sigmastocks – an important step Peer 3 towards delivering on our ambition Peer 4 • Gives us a head start creating a unique digital Peer 5 discretionary solution which will enable u
Slide 9: Achieve market leadership within occupational pension
C. Achieve market leadership within occupational pension • New development team in place that will work on improving the experience for corporates • Our occupational pension premium market share increased to 11% and to a number 4 position • Improvements in the pipeline for the pension customer exper
Slide 10: Retain and improve our market leading cost efficiency
D. Retain and improve our market leading cost efficiency Our market leading cost efficiency is an important competitive advantage New long-term target to demonstrate increased scalability is to decrease costs to savings capital ratio over time – decreased from 16 bps in 2023 to 14 bps in 2024 Increa
Slide 11: Well positioned in an improving macro environment
Well positioned in an improving macro environment Positive economic outlook Avanza is well positioned to capture further growth • Rates coming down • Top of the industry customer satisfaction with • Inflation around target an NPS of 49 – industry average is 3 • Fiscal policy reliefs • Scalable platf
Slide 12: An exciting journey ahead towards 2030
An exciting journey ahead towards 2030 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 cust
Slide 13: Financials – Full-year and Q4 results
Financials – Full-year and Q4 results
Slide 14: Strongest full-year results in the history of Avanza
Strongest full-year results in the history of Avanza Q4 24 Q3 24 ∆% 2024 2023 ∆% Operating income, SEK m 1,062 959 11 3,900 3,437 13 Operating expenses, SEK m -335 -300 12 -1,280 -1,148 11 Operating profit, SEK m 728 658 11 2,621 2,292 14 Adjusted operating profit, SEK m¹) 731 679 8 2,675 2,292 17 P
Slide 15: Trading activity picking up while NII has remained resilient
Trading activity picking up while NII has remained resilient All-time high annual revenue 1 100 1,062 3,900 4 000 3,301 3,437 1 000 3 500 Revenue, SEK m 951 959 2,973 929 3 000 900 868 882 2 500 2,349 847 854 824 833 2 000 800 768 740 1 500 700 1 000 Revenue, SEK m 618 500 600 0 2020 2021 2022 2023
Slide 16: Stable NII due to larger volumes and higher credit spreads
Stable NII due to larger volumes and higher credit spreads 431 409 398 388 Average interest rates 404 -12 385 Q3 24 Q4 24 -32 Internally financed Internally financed 390 lending: 4.30% lending: 3.84% Deposits: 1.70% Deposits: 1.34% 349 485 480 471 439 428 402 356 279 Volumes, SEK bn SEK million 195
Slide 17: Volumes play an important part
Volumes play an important part Volumes, SEK bn Average interest rates 2023 2024 Internally financed Internally financed lending: 4.12% lending: 4.22% Surplus-liquidity of Deposits: 1.21% Deposits: 1.64% Surplus-liquidity SEK 49.3 bn of SEK 47.9 bn 63.4 67.4 13.3 11.5 8.0 10.7 2023 2024 Margin lendin
Slide 18: Operating expenses, SEK m
2024 costs slightly below guidance 341 Annual cost increase of 9.2% 2024 350 335 1400 1,280 Operating expenses, SEK m 1200 1,148 306 303 1,031 300 1000 300 289 287 874 734 Operating expenses, SEK m 272 273 800 266 253 600 249 250 238 400 200 0 200 2020 2021 2022 2023 2024 Total expenses Non-recurrin
Slide 19: 2025 cost increase estimated at 11%
2025 cost increase estimated at 11% • Driven by investments in future growth • No cost growth connected to growing number of customers or savings capital • Total salary adjustments estimated at 4% Growth strategy 5% 0% +11% 3% 3% 1,280 Cost base 2024, SEK m Inflation Core business, Private Operation
Slide 20: Strong capital position also after proposed dividend of SEK 11.75 per share
Strong capital position also after proposed dividend of SEK 11.75 per share 31 December 2024 31 December 2023 Consolidated situation % SEK m % SEK m Total capital ratio / Own funds 23.0 3,941 24.7 3,574 Total capital requirement1) 18.2 3,114 18.2 2,631 Capital surplus 4.8 827 6.5 943 Leverage ratio
Slide 21: Closing remarks
Closing remarks 2024 has been a fantastic year for Avanza – ending with a great quarter • Strong growth despite households still being under pressure from previous inflation uptick and higher rates • Record result – the strength of our business model with several income streams once again demonstrat
Slide 22: Opening up for questions
ECR Opening up for questions