Avanza Bank Holding AB (publ): Preliminary Financial Statement 2021
January 20, 2022 at 01:46 am EST
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Fourth quarter 2021 compared to fourth quarter 2020
Operating income increased by 17 per cent to SEK 824 million. All revenue lines, except other income, improved. A capital gain of SEK 63 million was recognised in other income in the fourth quarter 2020 due to the reduced holding in Stabelo. Excluding one-off effects, operating income increased by 28 per cent
Operating expenses increased by 14 per cent to SEK 253 million, mainly due to higher personnel costs. In the fourth quarter 2021, costs of SEK 18 million were recognised due to a new interpretive guidance on accounting for intangible assets. Excluding these and the effect of the provision for rental costs in the fourth quarter 2020, costs increased by 15 per cent
The cost increase for the full year amounted to 13 per cent. Excluding costs affecting comparability and the accounting effect of SEK 18 million, the increase was 16.7 per cent, or about SEK 10 million more than the previously communicated estimate. The new financial target from 2022 to spotlight efficiency and the focus on costs is a costs to savings capital ratio of 12 basis points. Costs for 2022 are estimated at between SEK 1,050 million and SEK 1,070 million, compared to previous guidance of an increase of around 20 per cent
Operating profit amounted to SEK 571 million, an increase of 18 per cent
Profit for the period was SEK 483 million, an increase of 16 per cent
The Extraordinary General Meeting in November resolved as proposed to pay an additional dividend of SEK 2.95 per share. In total, 44 per cent of the profit for 2020 has been distributed
The Board of Directors proposes a dividend of SEK 9.20 per share (3.80), corresponding to 70 per cent of profit for 2021
Events during the quarter
Avanza was awarded Sweden’s most satisfied customers in the savings category for the twelfth consecutive year by the Swedish Quality Index
The management fee for the Avanza Auto funds was reduced by 40 per cent
“Right Now” was launched in the apps to give savers a simpler overview of their performance on a daily basis
Quote from Rikard Josefson, CEO Avanza “2021 was another record year for Avanza and after only two years we have reached the long-term targets we set for 2025. Now we are updating the targets with a focus on continued growth. Growth potential is strong and the new target is to reach a market share of 10 per cent of Sweden’s savings market by the end of 2025. Avanza is relevant to everyone who understands the importance of personal savings.”
Q4
Q3
Change
Q4
Change
Jan-Dec
Jan-Dec
Change
2021
2021
%
2020
%
2021
2020
%
Operating income, SEK m
824
767
7
706
17
3,301
2,349
41
Operating expenses, SEK m
–253
–192
31
–221
14
–864
–763
13
Operating profit, SEK m
571
574
0
486
18
2,437
1,576
55
Profit for the period, SEK m
483
481
0
418
16
2,047
1,335
53
Earnings per share before dilution, SEK
3.11
3.10
0
2.70
15
13.19
8.66
52
Operating margin, %
69
75
–6
69
0
74
67
7
Return on shareholders' equity, %
41
44
–3
58
–17
50
57
–6
Net inflow, SEK m
17,900
18,400
–3
18,700
–4
89,800
76,300
18
No. of new customers (net)
71,800
70,100
2
85,600
–16
379,800
303,900
25
No. of customers at the end of the period
1,660,100
1,588,400
5
1,280,300
30
1,660,100
1,280,300
30
Savings capital at the end of the period, SEK m
809,600
735,000
10
570,500
42
809,600
570,500
42
Income to savings capital ratio, %
0.43
0.42
0.00
0.52
–0.09
0.47
0.51
–0.04
Costs to savings capital ratio, %
0.13
0.11
0.02
0.16
–0.03
0.12
0.17
–0.04
A webcast presentation will be held by Rikard Josefson, CEO, and Anna Casselblad, CFO, on 20 January 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: 11888346#
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 (0)70 206 69 55 rikard.josefson@avanza.se
Anna Casselblad, CFO +46 (0)8 409 420 11 anna.casselblad@avanza.se
Sofia Svavar, Head of Investor Relations +46 (0)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 1.6 million customers with over SEK 800 billion in total savings capital. This is equivalent to 6.6 per cent of the Swedish savings market. Avanza is largest in terms of number of transactions among Swedish banks on the Stockholm Stock Exchange. During the last twelve years Avanza has won SKI’s (Swedish Quality Index) award, “Year’s Most Satisfied Savings Customers”. For more information visit: 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.
AVANZA BANK HOLDING AB 
