webcast, 21 january 2020 - avanza · full year 2019 results presentation webcast, 21 january 2020....
TRANSCRIPT
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Rikard Josefson, CEOBirgitta Hagenfeldt, CFO
Full year 2019 results presentationWebcast, 21 January 2020
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Net inflow exceeded 2018 with 18%, whereas customer growth was 10% stronger
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2013 2014 2015 2016 2017 2018 2019
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Customer growth Net inflow
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Largest Swedish player in stock market transactions on Nasdaq OMX and First North
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Q1
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Q2
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Q4
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Q1
-15
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Q4
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Transactions
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Q1
-14
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Q1
-16
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Q4
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Q1
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Q4
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Turnover
• Market share of 14.5% in terms of transactions and 6.0% in turnover in Q4 2019
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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
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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
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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
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% 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
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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
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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
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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
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Key to keep on investing and to sustain the low-risk balance sheet
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As always… key success factors for Avanza
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Employee engagement key
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FinancialsQ4 and full year 2019 results
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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
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Quarterly revenue development
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244234
227
271 271
244
267 267 268284
313329
0
50
100
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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
Rev
enu
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EK
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Total income Net brokerage income Income from mutual funds
Net interest income Other commission income
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Annual revenue development
896 909975
1 049
1 193
0
200
400
600
800
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
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Quarterly cost development
16
124131
123
157152 153
135
155164 166
148
179
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20
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100
120
140
160
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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xpe
ns
es
, S
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Total expenses Non-reccuring items Personnel Marketing Depreciation Other expenses
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Annual cost development
411443
535
594
657
0
100
200
300
400
500
600
700
2015 2016 2017 2018 2019
Op
era
tin
g e
xpen
ses,
SE
K m
Total expenses Non-reccuring items Personnel Marketing Depreciation Other expenses
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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