nordnet q3 2014 report presentation
DESCRIPTION
Nordnet's interim report for the period January-September 2014. Highlights from the third quarter: - Launch of the social investing network Shareville - The Super funds available on all Nordic markets - Continued strong underlying growth of customers and net savingsTRANSCRIPT
January – September 2014 Q3 presentation, October 22, 2014
Financial overview
July – September 2014
• Revenue increased by 7 percent to SEK 260.9 million (243.2)
• Profit after tax increased by 4 percent to SEK 60.1 million (58.1)
• Earnings per share were up by 4 percent to SEK 0.34 (0.33)
January – September 2014
• Revenue increased by 10 percent to SEK 801.3 million (725.5)
• Profit after tax increased by 16 percent to SEK 196.6 million (170.1)
• Earnings per share were up by 16 percent to SEK 1.12 (0.97)
Events Q3
• Launch of the social investing network Shareville
• The Super funds available on all Nordic markets
• Continued strong underlying growth of customers and net savings
Customers and accounts
Accounts/Customer Q3 2014: 1.25
12M: 36,800 / 10% 12M: 54,500 / 12%
0
100,000
200,000
300,000
400,000
500,000
600,000
Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14
Customers Accounts
Net savings and savings capital (SEK billion)
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
0
20
40
60
80
100
120
140
160
180
Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14
ne
t sa
vin
gs
savin
gs
ca
pita
l
Net savings Savings capital
Net savings in relation to savings capital
12M: 12,7 BSEK / 10%
Trades (thousands)
2,871
3,531
3,075
3,283
3,677
4,134
3,216 3,230
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14
Lending (SEK billion)
2.9 3.2 3.0 3.1
3.3 3.5
3.3 3.5
1.8
1.9 2.0
2.0
2.1
2.2 2.3
2.3
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14
Margin lending Private loans
Revenue development (SEK million)
126 119 120 120 124 120 123 121
77 101 91
100 111 127
108 110
25
24 28
23
29
34
28 30
0
50
100
150
200
250
300
Q412 Q113 Q213 Q313 Q4 13 Q1 14 Q2 14 Q3 14
Net interest income Net commission income Other income
12M: SEK 1,065 million
Cost development (SEK million incl. credit losses)
179
174
170 171
180
186
188
186
155
160
165
170
175
180
185
190
195
Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14
12M: SEK 740 million
Operating profit (SEK million)
49
70
68 72
84
95
71 75
0%
5%
10%
15%
20%
25%
30%
35%
40%
0
20
40
60
80
100
120
Q4 12 Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14
Operating profit Operating margin
12M: SEK 325 million
202.5
1.6 24.4
12.8
SE
NO
DK
FI489.0
95.5
99.8
117.1
SE
NO
DK
FI
89
16
20
36
SE
NO
DK
FI
Nordnet in the Nordics (Jan-Sep 2014)
Savings capital (SEK billion)
Revenue (SEK million) Operating profit (SEK million)
Customers
217,300
60,200
36,300
107,200 SE
NO
DK
FI
NO, DK, FI
share of
total 43%
NO, DK, FI
share of
total 47%
NO, DK, FI
share of
total 16%
NO, DK, FI
share of
total 39%
Income statement (SEK million)
3 months 3 months 9 months 9 months 12 m rolling 12 months
Consolidated Income Statement (SEK million) Jul-Sep 2014 Jul-Sep 2013 Jan-Sep 2014 Jan-Sep 2013 Oct-Sep 2014 Jan-Dec 2013
Net interest income 120.7 119.9 364.4 358.3 488.5 482.4
Net commission income 109.9 100.4 344.5 292.7 455.2 403.3
Other income 30.3 22.9 92.4 74.5 121.2 103.2
Total operating income 260.9 243.2 801.3 725.5 1,064.8 989.0
General administrative expenses -145.7 -136.8 -439 -405.8 -583.0 -549.8
Depeciation and amortization -19.8 -17.1 -55.7 -49.5 -72.8 -66.5
Other operating expenses -10.0 -9.0 -32.7 -29.4 -43.2 -39.9
Total operating expenses -175.5 -162.8 -527.4 -484.7 -698.9 -656.2
Profit before credit losses 85.4 80.4 273.9 240.7 365.9 332.8
Net credit losses -10.1 -8.3 -32.5 -30.3 -41.0 -38.8
Operating profit 75.3 72.1 241.4 210.4 324.9 294.0
Tax on profit for the period -15.1 -14.1 -44.8 -40.3 -64.6 -38.8
Profit for the period 60.1 58.1 196.6 170.1 260.3 233.8
Earnings per share before dilution 0.34 0.33 1.12 0.97 1.49 1.34
Balance sheet (SEK million)
Consolidated Statement of Financial Position (SEK million) 30/09/2014 30/09/2013 31/12/2013
Loans to credit institutions 929.6 1,004.6 967.6
Loans to the public 6,220.5 5,509.3 5,455.5
Financial assets 11,054.9 8,340.2 7,645.7
Financial assets - policy holders bearing the risk 28,339.0 23,130.5 23,764.9
Tangible and intangible assets 470.2 489.9 480.7
Current tax assets 46.4 102.8 99.9
Other assets 2,795.1 1,005.1 1,141.0
Prepaid expenses and accrued income 207.7 122.9 138.9
Total assets 50,063.6 39,705.3 39,694.2
Deposits and borrowing by the public 14,901.2 12,263.3 12,898.6
Liabilit ies to policyholders 28,339.8 23,131.2 23,765.6
Other liabilit ies 4,782.6 2,390.3 1,404.7
Shareholders' equity 1,676.0 1,551.0 1,621.0
Non-controlling interest 3.9 4.9 4.4
Total equtity 1,680.0 1,555.9 1,625.4
Total liabilities and equity 50,063.6 39,705.3 39,694.2
Capital requirement (SEK million)
Capital requirements for the financial conglomerate (SEK million) 30/06/2014 30/06/2013 31/12/2013
Total equity, Group 1,680.0 1,555.9 1,625.4
Less, profit that have not been subject to audit -196.6 - -
Plus subordinated liablities 140.6 175.7 175.7
Less suggested/assumed div idend for current year - -102.1 -148.8
Less intangible fixed assets and deferred tax receivables -437.5 -456.7 -447.4
Capital base 1,186.5 1,172.9 1,205.0
Risk exposures
Exposure credit risk 5,113.3 5,038.8 4,826.3
Exposure market risk 38.6 163.8 220.0
Exposure operational risk 1,888.6 1,828.8 1,828.8
Exposure other 417.3 398.8 407.5
Total exposure 7,457.8 7,430.0 7,282.5
Capital ratio 15.9% 15.8% 16.5%
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