webcast, 21 january 2020 - avanza · full year 2019 results presentation webcast, 21 january 2020....

Rikard Josefson, CEOBirgitta Hagenfeldt, CFO

Full year 2019 results presentationWebcast, 21 January 2020

Net inflow exceeded 2018 with 18%, whereas customer growth was 10% stronger

2

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5 000

10 000

15 000

20 000

25 000

30 000

35 000

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40 000

60 000

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120 000

140 000

2013 2014 2015 2016 2017 2018 2019

Ne

t in

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w, S

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m

Ne

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Customer growth Net inflow

Largest Swedish player in stock market transactions on Nasdaq OMX and First North

3

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6,0

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12,0

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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

Ma

rke

t sh

are

, %

Transactions

0,0

1,0

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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

Ma

rke

t s

ha

re, %

Turnover

• Market share of 14.5% in terms of transactions and 6.0% in turnover in Q4 2019

Improved customer experience in 2019

• Entirely new start page for Avanza.se

• “My new pages” personalised start page and new navigation

• First steps within Open banking

• Totally rebuilt fund pages

• Better sustainability data on funds and new section in the Avanza Academy

• Improved share data on foreign stocks

• Avanza Emerging Markets and Avanza USA

4

Target fulfillment 2019

Long-term targets Outcome 2019 Comments

Sweden’s most satisfied savers according to Swedish Quality Index

√ Achieved in 2019 for the tenth consecutive year

Engaged employees, eNPS of at least 45

54 Very strong ambassadorship

Market share of at least 10 per cent R 12M of the total net inflow to the Swedish savings market

14.6% As per 30 September 2019

1 million customers 2020 976,400 Well on track to achieve the target

Cost growth should not outpace income growth √

Income growth 13,8%Cost growth 10,6%, excluding fee and one-off write down

Dividend of at least 70 per cent of net profit for the year

79* * Proposed dividend of SEK 2.30 per share

5

New long-term targets for 2025

• Market share of 15 per cent of the total net inflow to the Swedish savings market 2025

• Market share of close to 7 per cent of the total Swedish savings market 2025

• Return on equity of 25-30 per cent

6

% 2016 2017 2018 2019

Annual market share net inflow 10.9 11.0 12.0 14.6*

Market share Swedish savings market 3.3 3.6 3.8 4.3*

RoE 33 30 24 27

* As of 30 september 2019

Remining unchanged targets

• Sweden’s most satisfied savers according to Swedish Quality Index

• Engaged employees, eNPS of at least 45

• Dividend of at least 70 per cent of net profit for the year

7

Sustainability strategy and targets

• Increased share of capital in sustainable investments

• Increased share of customers who save in sustainable alternatives

• Be seen as the leading sustainable brand and the natural choice for sustainable savings

• Increase the share of female customers to 50 per cent of new customers

• Organisation with parity between women and men

• Become climate positive

8

Growth factors

• Continued low interest rates for the foreseeable future

• More reasons for customers to take responsibility for their own savings – not only when it comes to young people

• Increased focus on sustainable investments

9

Key to keep on investing and to sustain the low-risk balance sheet

As always… key success factors for Avanza

11

Employee engagement key

FinancialsQ4 and full year 2019 results

12

Financial overview

Q4 19 Q3 19 ∆ % 2019 2018 ∆ %

Operating income, SEK m 329 313 5 1,193 1,049 14

Operating expenses, SEK m -187* -148 26 -666* -629** 6

Operating profit, SEK m 140 163 -14 520 418 24

Operating margin, % 43 52 -9 44 40 4

Income to savings capital ratio, % 0.34 0.34 -0.01 0.34 0.35 -0.01

Costs to savings capital ratio, % 0.19 0.16 0.03 0.19 0.20 -0.01

ROE, % 26 33 -7 27 24 2

EPS, SEK 0.79 0.91 -13 2.94 2.32 27

* including one-off write down of SEK 8.3 million** including the Swedish Financial Supervisory Authority’s administrative fee of SEK 35 million on the subsidiary Försäkringsaktiebolaget Avanza Pension

Quarterly revenue development

14

244234

227

271 271

244

267 267 268284

313329

0

50

100

150

200

250

300

350

Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19

Rev

enu

e, S

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Total income Net brokerage income Income from mutual funds

Net interest income Other commission income

Annual revenue development

896 909975

1 049

1 193

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200

400

600

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1 000

1 200

1 400

2015 2016 2017 2018 2019

Rev

en

ue,

SE

K m

Total income Net brokerage income Income from mutal funds

Net interest income Other income

Quarterly cost development

16

124131

123

157152 153

135

155164 166

148

179

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20

40

60

80

100

120

140

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180

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Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19

Op

era

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g e

xpe

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, S

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Total expenses Non-reccuring items Personnel Marketing Depreciation Other expenses

Annual cost development

411443

535

594

657

0

100

200

300

400

500

600

700

2015 2016 2017 2018 2019

Op

era

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Total expenses Non-reccuring items Personnel Marketing Depreciation Other expenses

Good capitalisation and the board proposes a dividend for 2019 of SEK 2.30 per share

18

SEK m 31 December2019

30 September2019

31 December 2018

Total capital ratio 17.7% 19.7% 18.8%

Regulatory capital requirements* 13.8% 14.5% 13.8%

Capital requirements incl. internal buffers 15.8% 16.5% 15.8%

Liquidity coverage ratio (LCR requirement 1.0) 6.8 3.2 8.0

Leverage ratio (requirement of 3%, as of June 2021) 3.4% 3.5% 3.1%

* Including external buffers and Pillar 2 requirements