nordnet year-end report 2009
DESCRIPTION
Nordnet's results for 2009 were presented by CEO Carl-Viggo Östlund and CFO Fredrik Svederman during a webcast on 12 February 2010 at 09.00 CET.TRANSCRIPT
Strong growth throughout the NordicsYear-end report 2009
Carl-Viggo Östlund, CEO and Fredrik Svederman, CFO
E-mail questions to: [email protected]
Financial highlights
2009 YOY change
Operating income SEK 921,0 million +31%
Net profit SEK 203,4 million +47%
Basic EPS SEK 1,23 +46%
Proposed dividend per share SEK 0,50 0%
Active accounts 308,600 +34%
Total savings capital SEK 90,4 billion +131%
Trades per day 61,774 +35%
Negative goodwill from eQ acquisition SEK 53,8 million
Resultatrad 1 Resultatrad 2 Resultatrad 3Q4 YOY change
Operating income SEK 265,9 million +62%
Net profit SEK 29,4 million +5%
Basic EPS SEK 0,18 +6%
Trades per day 63,400 +3%
Resultatrad 1 Resultatrad 2 Resultatrad 3
General highlights
2009
Q4
• Largest broker in the Nordic region
• Acquisition of eQ - Clarifies our strategy and vision
• Pension products in Denmark
• Focus on securities brokerage in Sweden and Norway
• High activity in all markets
• Divestment of eQ's asset management business
• Best bank site in Sweden
Operating profitLower in Q4 due to eQ related costs
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
0
20
40
60
80
100
120
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09
Operating profit Operating margin
2009: SEK 199,2 million (ex. goodwill)
Number of accountsStrong underlying growth – 4,700 accounts divested with eQ AM
308 600
0
50 000
100 000
150 000
200 000
250 000
300 000
350 000
Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09
2009: +77,600 / +34%
Net savingsStrong market belief among customers
3 389
1 839
1 413
2 227
2 8523 057 3 013
3 366
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09
2009: SEK 12,3 billion
Number one in the Nordic region
Broker Number of trades Market share Number of trades Market share
Full year 2009 Full year 2008
1 Nordnet 13 005 323 9,30% 9 400 940 6,46%
2 SEB Enskilda 11 608 229 8,30% 10 748 469 7,39%
3 Av anza Bank 7 221 128 5,16% 5 503 115 3,78%
4 Handelsbanken 6 732 107 4,81% 5 764 216 3,96%
5 Morgan Stanley 6 647 130 4,75% 9 464 979 6,51%
6 Credit Suisse 6 346 018 4,54% 5 343 198 3,67%
7 Deutsche Bank 5 831 181 4,17% 6 427 836 4,42%
8 HQ 4 657 717 3,33% 1 281 109 0,88%
9 Swedbank 4 262 344 3,05% 2 925 058 2,01%
10 Merrill Lynch 4 235 637 3,03% 5 803 735 3,99%
139 853 966 100% 145 431 012 100%Total the Nordic Exchanges
Increased market shares (Trades)
*2009 figure includes eQ from 1 July
Source: Official statistics from the various stock exchanges
Increased market shares (Turnover)
*2009 figure includes eQ from 1 July
Source: Official statistics from the various stock exchanges
12 months 12 months
Consolidated Income Statement (SEK million) Jan-Dec 2009 Jan-Dec 2008
Net interest income 204 251
Net commission income 565 409
Other income 152 43
Total operating income 921 703
General administrativ e expenses -517 -390
Depreciation of tangible and intangible assets -87 -69
Other operating expenses -58 -52
Total operating expenses -662 -511
Operating profit before credit losses 259 192
Net credit losses -6 -10
Profit before tax 253 182
Tax -50 -44
Net profit after tax 203 138
Financial development per quarter (SEK million) Q4 09 Q3 09 Q2 09 Q1 09 Q4 08 Q3 08 Q2 08 Q1 08
Rev enues 266 258 191 152 164 170 176 193
Operating expenses & depreciations -211 -171 -117 -110 -106 -103 -115 -120
Marketing expenses -17 -14 -15 -9 -10 -8 -11 -21
Net credit losses -4 -2 0 -1 -7 -2 0 0
Profit before goodwill and non-recurring items 35 72 60 33 41 57 49 51
Goodwill and non-recurring items - 54 - - -5 - -12 -
Profit before tax 35 126 60 33 36 57 38 51
Number of full-time employees at end of period 366 408 269 269 255 262 259 326
New accounts 4 100 54 900 11 000 7 700 12 600 4 600 16 000 12 700
Net sav ings 3 366 3 013 3 057 2 852 2 227 1 413 1 839 3 389
Net rev enue per trade (SEK) 34 35 31 27 27 32 36 35
Consolidated balance sheet (SEK million) 2009-12-31 2008-12-31
Liquid assets at the end of the period 2 384 4 204
Loans to the public 4 586 2 128
Financial assets 3 469 23
Financial assets - policy holders bearing the risk 11 866 5 843
Tangible and intangible assets 455 324
Other assets 1 049 359
Total assets 23 809 12 881
Deposits and borrowing from the public 9 899 5 818
Liabilities to policyholders 11 866 5 846
Other liabilities 1 007 366
Shareholders' equity 1 036 852
Total liabilities and shareholders' equity 23 809 12 881
The financial conglomerate (MSEK) 2009-12-31 2008-12-31
Shareholder's equity, the Group 1 036,4 851,8
Less proposed div idend -83,5 -82,2
Less intangible assets and deferred tax receiv ables -416,3 -275,5
Capital base 536,6 494,1
Capital requirement for regulated units within the banking and securities sector 445,5 268,4
Theoretical capital requirement for non-regulated units 2,2 2,0
Capital requirement for regulated units within the insurance sector 23,5 21,0
Capital requirement 471,2 291,4
Capital surplus 65,4 202,7
Capital base/Capital requirement 1,14 1,70
Events after year-end
• Fixed-term subordinated loan of SEK 100 million to strenghten
capital base and retain the necessary flexibility to capitalise
on future market opportunities
• Launch of iPhone application
• Best broker/bank award in Denmark
Outlook
• Further steps towards our vision
• Promising start of the year – High activity in all markets
• Launch of important banking products in 2010
• eQ integration to be completed by 1 June 2010
• eQ to have positive impact on profits in 2010
• Continued consolidation expected
• Continued lack of confidence in the Jurassic banks
Long-term objectives
• 100% cost coverage from other income than trading
commision at the end of 2011
• Double the revenues from levels of 2007 while maintaining a
high operating margin within 2-3 years
Vision
• To become the leading bank for savings in the Nordic
countries by 2018
Large potential
Nordnet’s potential client base
25 million people in the Nordic region
10 million save in shares and mutual funds
Nordnet’s existing clients 2009