Avanza Bank Holding AB (publ): Preliminary Financial Statement 2020
January 21, 2021 at 01:45 am EST
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Fourth quarter 2020 compared to fourth quarter 2019
Customer growth was 85,600 (37,300), an increase of 129 per cent
Net inflow in the quarter was SEK 18,700 million (6,820), an increase of 174 per cent
Operating income increased by 115 per cent to SEK 706 million, of which SEK 63 million is due to a reduced holding in Stabelo. All revenue lines improved
Operating expenses increased by 18 per cent to SEK 221 million. The fourth quarter included a write-down of SEK 16 million for office rent on Vasagatan, as previously announced. Personnel costs were also higher
The cost increase for the full year was 11.6 per cent excluding extraordinary relocation costs for 2019 and 2020, in line with previous guidance of 12 per cent. In 2021, the cost increase is estimated at about 15 per cent, as announced in December. The extraordinary relocation costs are not included in the cost growth for 2021, either. The long-term guidance on annual cost growth is 9–12 per cent
Net profit amounted to SEK 418 million, an increase of 245 per cent. Profit includes SEK 63 million associated with the reduced holding in Stabelo
When the Stabelo holding was reduced, a revaluation of SEK 144 million was recognised via other comprehensive income. Total comprehensive income after tax amounted to SEK 557 million
The Board of Directors is proposing, in view of the Swedish Financial Supervisory Authority’s recommendation to distribute not more than 25 per cent of profits for the years 2019 and 2020, a dividend of SEK 0.85 (2.30) per share. The Board has estimated remaining distributable earnings at SEK 2.95 per share, for an extraordinary general meeting to decide on when the recommendation is repealed
Chief Operating Officer Gunnar Olsson will succeed Birgitta Hagenfeldt as Deputy CEO
Avanza was awarded Sweden’s most satisfied customers in the savings category for the eleventh consecutive year by the Swedish Quality Index
Avanza was named Bank of the Year 2020 by the magazine Privata Affärer for the third year in a row
In an exclusive collaboration, Avanza launched its second actively managed fund, Avanza Småbolag by Skoglund, with a focus on Swedish small-cap stocks
Stock lending was launched, giving endowment insurance customers an opportunity for extra return
New equity pages were launched, and in the apps a new summary page and new functions, including a stock swiping feature, were added
Quote from Rikard Josefson, CEO Avanza “The year finished just as strongly as it began with customer activity remaining high. Growth for the year was record high at over 300,000 new customers and a net inflow of SEK 76 billion. The strong growth, coupled with savings capital of close to SEK 600 billion and the fact that nearly one out of every five kronor of savings is now invested with Avanza, bodes well for 2021.”
Q4
Q3
Change
Q4
Change
Jan-Dec
Jan-Dec
Change
2020
2020
%
2019
%
2020
2019
%
Operating income, SEK m
706
575
23
329
115
2,349
1,193
97
Operating expenses, SEK m
–221
–177
25
–187
18
–763
–666
15
Operating profit, SEK m
486
396
23
140
247
1,576
520
203
Net profit, SEK m
418
331
26
121
245
1,335
447
199
Earnings per share before dilution, SEK
2.70
2.15
26
0.79
243
8.66
2.94
195
Operating margin, %
69
69
0
43
26
67
44
24
Net inflow, SEK m
18,700
16,300
14
6,820
174
76,300
32,600
134
No. of new customers (net)
85,600
79,200
8
37,300
129
303,900
139,300
118
Savings capital at the end of the period, SEK m
570,500
514,200
11
407,700
40
570,500
407,700
40
A webcast presentation will be held by Rikard Josefson, CEO, and Birgitta Hagenfeldt, CFO, on 21 January 2021 at 10.00 (CET). The presentation will be held in English and there will be opportunities to ask questions. The presentation can be followed at avanza.se/ir. Phone number for participants:
Sweden: +46 (0)8 566 426 51
UK: +44 33 330 008 04
US: +1 63 191 314 22
Confirmation code: 83237775#
This Interim Report is published in Swedish and English. In the event of any difference between the English version and the Swedish original, the Swedish version shall prevail.
For further information please contact: Rikard Josefson, CEO +46 70 206 69 55 rikard.josefson@avanza.se
Birgitta Hagenfeldt, CFO and Deputy CEO +46 73 661 80 04 birgitta.hagenfeldt@avanza.se
Sofia Svavar, Head of Investor Relations +46 8 409 420 17 sofia.svavar@avanza.se
Avanza is a digital platform for savings and investments, founded in 1999. The Parent Company, Avanza Bank Holding AB (publ), is listed on the Stockholm Stock Exchange. Avanza’s customer promise is a better return on your savings than with any other bank or pension provider in Sweden. Services include saving in shares, funds, savings accounts, mortgages and a strong pension offering. Avanza has more than 1 million customers with over SEK 500 billion in total savings capital. This is equivalent to 5.4 per cent of the Swedish savings market. Avanza is largest in terms of number of transactions among Swedish banks on the Stockholm Stock Exchange including First North. During the last eleven years Avanza has won SKI’s (Swedish Quality Index) award, “Year’s Most Satisfied Savings Customers”. For more information visit: www.avanza.se/ir
Avanza Bank Holding AB is a Sweden-based company engaged in the financial services sector. The Company offers a platform for savings and investments. Avanza Bank Holding is the Parent Company of the Avanza Group. The operational activities are conducted by its subsidiaries: Avanza Bank AB (publ), Forsakringsaktiebolaget Placera Media Stockholm AB and Avanza Fonder AB. The Company offers a broad range of savings products, as pension offering and mortgages. Customers are offered to save in Swedish and foreign securities and in savings accounts, with no fixed account charges and a low brokerage fee. The Company primarily targets individual investors, but also offers services for professional investors and corporate customers, such as entrepreneurs, asset managers and those who want occupational pension.