webcast, 21 april 2020 - investors.avanza.se · q1 2020 results presentation webcast, 21 april...
TRANSCRIPT
Rikard Josefson, CEOBirgitta Hagenfeldt, CFO
Q1 2020 results presentationWebcast, 21 April 2020
Strong customer growth throughout the quarter, +86 100
2
Record-high net inflow in Q1, SEK 21.9 billion
3
Record high activity, throughout the quarter
4
0
50
100
150
200
250
300
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
9 000
10 000
Tu
rno
ver,
SE
K m
No
. n
ote
s, t
ho
us
an
ds
No. commission generating notes, thousands
Commission generating turnover, SEK m
Increased market shares – largest Swedish player on Nasdaq OMX and First North
5
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
18,0
Q1
-15
Q2
-15
Q3
-15
Q4
-15
Q1
-16
Q2
-16
Q3
-16
Q4
-16
Q1
-17
Q2
-17
Q3
-17
Q4
-17
Q1
-18
Q2
-18
Q3
-18
Q4
-18
Q1
-19
Q2
-19
Q3
-19
Q4
-19
Q1
-20
Ma
rke
t s
ha
re, %
Transactions
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
Q1
-15
Q2
-15
Q3
-15
Q4
-15
Q1
-16
Q2
-16
Q3
-16
Q4
-16
Q1
-17
Q2
-17
Q3
-17
Q4
-17
Q1
-18
Q2
-18
Q3
-18
Q4
-18
Q1
-19
Q2
-19
Q3
-19
Q4
-19
Q1
-20
Ma
rke
t s
ha
re, %
Turnover
• Market share of 16.6% in terms of transactions and 7.6% in turnover in Q1 2020
A few launches in the quarter, intensified focus on customer communication
• Avanza Europe launched – a supplement to our cheap index funds
• The fund pages improved with more sustainability data
• More ETF:s were added
• Several improvements on the site
• Customers have requested more support during the crises and we have published more podcasts and blogs than ever
6
Further investments to ensure continued high customer satisfaction
• Strong growth over the years
• Extremely high customer activity
• Continuous efficiency improvements as well as simplifications and new decision support on the website – come to a point where more is needed
• Additional investments to be made
• More employees in customer service
• More employees as well as further automate and improve back-office
• Scaling up IT capacity
• Altogether additional SEK >10 million in costs 2020
7
How sustainable is Q1 as a reference and what are the expected impacts from covid-19?
• Activity expected to decline from these record levels, although the lowest level should have increased seen to our strong growth
• High outflow from funds, however this stabilised during the end of the quarter
• Currently high liquidity, expected to gradually be invested
• So far only marginal effects within the pension business, and limited exposure to vulnerable sectors
• The long-term strategy and targets remain
8
Growth factors still very relevant
• Continued low interest rates for the foreseeable future
• Several reasons for customers to take responsibility for their own savings, this has been even more obvious the last months – this refers not only to young people
• Still strong and increasing focus on sustainable investments
9
As always… key success factors for Avanza
10
Employee engagement key
FinancialsQ1 results
11
Financial overview
* including one-off write down of SEK 8.3 million
Q1 20 Q4 19 ∆ % Q1 19 ∆ %
Operating income, SEK m 542 329 65 268 102
Operating expenses, SEK m -179 -187* -4 -164 9
Operating profit, SEK m 361 140 158 100 261
Operating margin, % 67 43 24 37 29
Income to savings capital ratio, % 0.56 0.34 0.22 0.34 0.22
Costs to savings capital ratio, % 0.18 0.19 -0.01 0.21 -0.02
ROE, % 64 26 39 23 41
EPS, SEK 1.98 0.79 152 0.57 245
Quarterly revenue development
13
244 234 227
271 271
244267 267 268
284
313329
542
0
100
200
300
400
500
600
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20
Re
ven
ue
, SE
K m
Total income Net brokerage income Income from mutual funds Net interest income Other commission income
Quarterly cost development
14
124131
123
157152 153
135155
164 166
148
179
179
0
20
40
60
80
100
120
140
160
180
200
Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19 Q3-19 Q4-19 Q1-20
Op
era
tin
g e
xp
en
se
s, S
EK
m
Total expenses Non-reccuring items Personnel Marketing Depreciation Other expenses
Capitalisation
15
SEK m 31 March2020
31 December2019
31 March2019
Total capital ratio 18.1% 17.8% 17.1%
Regulatory capital requirements* 12.0% 14.4% 14.1%
Capital requirements incl. internal buffers 14.0% 16.4% 16.1%
Liquidity coverage ratio (LCR requirement 1.0) 9.0 6.8 2.6
Leverage ratio (requirement of 3%, as of June 2021) 2.5% 3.5% 2.9%
* Including external buffers and Pillar 2 requirements