Q3 2020 results presentation
Webcast, 19 October 2020
218,300 new customers in 2020 - so far
- 000
- 000
- 000
- 000
- 000
- 000
- 000
-
000
0
2019 2020
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2
Continued strong net inflow, SEK 57.6 billion YTD
10
9
8
7
6
5
4
3
2
1
0
SEK Billions
9,1
7,9
6,2 | 6,6 | ||
6,1 | 6,1 | ||
5,3 | 5,3 | 4,9 | |
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 2020
3
Market share of 19.2% rolling 12M of net savings on the Swedish savings market
4
5
premiums pension occupational and funds in savings Monthly
Jan -18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug18
Sep-18
Oct-18
Nov-18
Dec-18
Jan -19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug19
Sep-19
Oct-19
Nov-19
Dec-19
Jan -20
Feb-20
Mar-20
Apr-20
May-20
Jun-20
Jul-20
Aug20
Sep-20
SEK million | savingsMonthly development | ||||||
400 | 500 | 600 | 700 | 800 | 900 | 000 1 | |
capital savings of part important an |
Taking market share - largest Swedish participant on Nasdaq OMX and First North
Market share, %
25
20
15
10
5
0
Transactions | Turnover | |
10 | ||
9 | ||
% | 8 | |
share, | 7 | |
6 | ||
Market | 5 | |
4 | ||
3 | ||
2 | ||
1 | ||
Q1-15Q2-15Q3-15Q4-15Q1-16Q2-16Q3-16Q4-16Q1-17Q2-17Q3-17Q4-17Q1-18Q2-18Q3-18Q4-18Q1-19Q2-19Q3-19Q4-19Q1-20Q2-20Q3-20 | 0 | |
Q1-15Q2-15Q3-15Q4-15Q1-16Q2-16Q3-16Q4-16Q1-17Q2-17Q3-17Q4-17Q1-18Q2-18Q3-18Q4-18Q1-19Q2-19Q3-19Q4-19Q1-20Q2-20Q3-20 |
- Market share of 19.9% in terms of transactions and 9.6% in turnover in Q3 2020
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Strong growth makes Avanza more resilient
- Strong customer growth and growth in savings capital
- Avanza has over 160 000 more brokerage generating customers YTD
- Monthly savings have grown with 26 per cent YTD
- Growth in savings capital strongly correlated with growth in income
- Lowest level considerable higher
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As always… key success factors for Avanza
Employee engagement key
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Financials
Q3 results
9
Financial overview
Q3-20 | Q2-20 | ∆ % | Q3-19 | ∆ % | 9M-20 | 9M-19 | ∆ % | |
Operating income, SEK m | 575 | 526 | 9 | 313 | 84 | 1,643 | 865 | 90 |
Operating expenses, SEK m | -177 | -185 | -4 | -148 | 19 | -541 | -478 | 13 |
Operating profit, SEK m | 396 | 333 | 19 | 163 | 144 | 1,091 | 380 | 187 |
Operating margin, % | 69 | 63 | 6 | 52 | 17 | 66 | 44 | 22 |
Income to savings capital ratio, % | 0.48 | 0.52 | -0.04 | 0.34 | 0.14 | 0.51 | 0.34 | 0.17 |
Costs to savings capital ratio, % | 0.15 | 0.18 | -0.03 | 0.16 | -0.01 | 0.17 | 0.19 | -0.02 |
ROE, % | 55 | 56 | -1 | 33 | 23 | 57 | 27 | 30 |
EPS, SEK | 2.15 | 1.83 | 18 | 0.91 | 137 | 5.96 | 2.15 | 177 |
Quarterly revenue development
700
600 | 575 |
542 526
500
Revenue, SEK m
400 | |||||||||
313 | 329 | ||||||||
300 | 284 | ||||||||
271 | 271 | 267 | 267 | 268 | |||||
244 | 234 | 227 | 244 | ||||||
200 | |||||||||
100
0
Q1-17Q2-17Q3-17Q4-17Q1-18Q2-18Q3-18Q4-18Q1-19Q2-19Q3-19Q4-19Q1-20Q2-20Q3-20
Total income | Net brokerage income | Income from mutual funds | Net interest income | Other commission income | ||||
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Strong growth in number of commission generating customers
No of customers
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0
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Net brokerage strong correlated with Avanza's turnover on the stock exchange
Turnover, SEK m
13
- 000
- 000
- 000
- 000
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- 000
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000
0
Jan -17Mar-17May-17Jul-17Sep-17Nov-17 Jan -18Mar-18May-18Jul-18Sep-18Nov-18 Jan -19Mar-19May-19 | Jul-19Sep-19Nov-19 Jan -20Mar-20May-20Jul-20Sep-20 | ||||
Avanza's turnover on Nasdaq & First North | Net brokerage income | ||||
140 | |
120 | |
m | |
100 | SEK |
80 | income, |
brokerage | |
40 | |
60 | |
Net | |
20 | |
0 |
Quarterly cost development
Operating expenses, SEK m
200 | |||||||||
179 | 185 | ||||||||
180 | 177 | ||||||||
157 | 164 | 166 | 179 | ||||||
160 | 152 | 153 | |||||||
155 | 148 | ||||||||
140 | 135 | ||||||||
131 | 123 | ||||||||
124 | |||||||||
120 | |||||||||
100
80
60
40
20
0
Q1-17Q2-17Q3-17Q4-17Q1-18Q2-18Q3-18Q4-18Q1-19Q2-19Q3-19Q4-19Q1-20Q2-20Q3-20
Total expenses | Non-reccuring items | Personnel | Marketing | Depreciation | Other expenses | ||||
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Capitalisation
SEK m | 30 September | 30 June | 31 December |
2020 | 2020 | 2019 | |
Total capital ratio | 18.7% | 17.1% | 17.8% |
Regulatory capital requirements* | 12.0% | 11.9% | 13.9% |
Capital requirements incl. internal buffers | 14.0% | 13.9% | 15.9% |
Liquidity coverage ratio (LCR requirement 1.0) | 6.8 | 9.7 | 6.8 |
Leverage ratio (requirement of 3%, as of June 2021) | 3.1% | 2.8% | 3.5% |
* Including external buffers and Pillar 2 requirements
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Disclaimer
Avanza Bank Holding AB published this content on 19 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 October 2020 07:14:02 UTC