» nordnet challenges the jurassic banks «Interim report January - March 2010

Carl-Viggo Östlund, CEO and Fredrik Svederman, CFO

E-mail questions to: adrian.westman@nordnet.se

Financial highlights

net savings

4.3 (2.9)

billion Swedish kronor

total savings capital

96.2 (42.8)

billion Swedish kronor

net commission

32 (27)

Swedish kronor per trade

number of active accounts

317,800 (238,600)

number of trades

4,348,100 (3,565,805)

cost coverage

66 (49)

percent

• Operating income increased by 79 percent to SEK 272.9 million (152.1)

• Profit after tax increased by 109 percent to SEK 52.9 million (25.3)

• Earnings per share before dilution were up 105 percent to SEK 0.32 (0.15)

General highlightsQ1

•Intensive activity among savers

•Focus on the Nordics; phasing-out of Luxembourg operations

•eQ integration progress according to schedule

•Launch of iPhone application in all Nordic markets

•Stockbroker of the Year in Denmark

Operating profit+117% compared to Q1 2009

Number of accountsStrong underlying growth

Total number of customers: 272,200

Net savingsStrong market belief among customers

Market shares January - MarchAlgorithmic trading is gaining momentum

Broker Number of trades Market share Number of trades Market share

First quarter 2010 First quarter 2009

1 SEB Enskilda 3 656 116 8,38% 2 861 132 8,24%

2 Nordnet 3 521 408 8,07% 2 983 093 8,59%

3 Credit Suisse 2 607 291 5,97% 1 484 057 4,27%

4 Handelsbanken 2 075 099 4,75% 1 598 000 4,60%

5 Avanza Bank 1 966 883 4,51% 1 681 973 4,84%

6 Morgan Stanley 1 878 815 4,31% 2 046 127 5,89%

7 Deutsche Bank 1 784 079 4,09% 1 649 029 4,75%

8 HQ 1 506 007 3,45% 296 822 0,85%

9 Citadel Securities 1 495 590 3,43% 59 451 0,17%

10 Swedbank 1 475 045 3,38% 845 077 2,43%

43 641 128 100% 34 721 792 100%Total the Nordic Exchanges

Market shares (Trades)

*2009 figure does not include eQSource: Official statistics from the various stock exchanges

Market shares (Turnover)

*2009 figure does not include eQSource: Official statistics from the various stock exchanges

3 months 3 months 12 months

Consolidated Income Statement (SEK million) Jan-Mar 2010 Jan-Mar 2009 Jan-Dec 2009

Net interest income 71.0 42.3 204.3

Net commission income 164.3 99.2 565.1

Other income 37.4 10.6 97.8

Total operating income 272.7 152.1 867.2

General administrative expenses -160.1 -93.1 -517.2

Depreciation and amortization -27.2 -16.5 -87.0

Other operating expenses -14.7 -9.5 -57.7

Total operating expenses -202.0 -119.1 -661.9

Profit before credit losses 70.6 33.0 205.3

Net credit losses 0.0 -0.5 -6.2

Operating profit 70.6 32.5 252.9

Tax on profit for the period -17.8 -7.2 -49.6

Profit for the period 52.9 25.3 203.3

Financial development per quarter - Group (SEK million) Q1 10 Q4 09 Q3 09 Q2 09 Q1 09 Q4 08 Q3 08 Q2 08

Operating income 273 266 258 191 152 164 170 176Operating expenses and depreciation -197 -227 -184 -131 -119 -116 -111 -126Net credit losses 0 -4 -2 0 -1 -7 -2 0Profit before goodwill and non-recurring items 76 35 72 60 33 41 57 49

Goodwill and non-recurring items -6 - 54 - - -5 - -12

Operating profit 71 35 126 60 33 36 57 38

New accounts 9,200 4,100 54,900 11,000 7,700 12,600 4,600 16,000Net commission per trade (SEK) 32 34 35 31 27 27 32 36

Consolidated Statement of Financial Position (SEK million) 31/03/2010 31/03/2009 31/12/2009

Loans to credit institutions 1,951 4,395 2,384Loans to the public 4,823 2,386 4,586

Financia l assets 3,861 113 3,469

Financia l assets - policy holders bearing the risk 15,279 7,313 11,866

Tangible and intangible assets 423 328 455Other assets 1,118 274 994

Total assets 27,456 14,809 23,754

Deposits and borrowing by the public 9,885 5,926 9,875Liabilities to policyholders 15,278 7,327 11,869

Other liabilities 1,231 660 949

Shareholders' equity 1,062 896 1,036

Total liabilities and shareholders' equity 27,456 14,809 23,729

Capital requirements for the financial conglomerate (SEK million) 31/03/2010 31/12/2009

Shareholder's equity, G roup 1,062.0 1,036.4

Plus convertible loan 100.0 -

Less proposed div idend for the 2009 financia l year -83.8 -83.8

Less assumed div idend for the 2010 financia l year -21.2 -

Less intangible fixed assets and deferred tax receivables -389.6 -416.3

Capital base 667.4 536.3

Capita l requirement for regulated units within the banking and securities sector 466.3 447.8

Theoretica l solvency requirement for non-regulated units in the largest financia l sector 2.1 2.2

Capita l requirement for regulated units within the insurance sector 23.5 23.5

Capital requirement 491.9 473.5

Capital surplus 175.5 62.8

Capital coverage ratio 1.36 1.13

Outlook

• Focused marketing efforts – unbank yourself

• Launch of important banking products in 2010

• Luxembourg phasing out to be completed in Q3

• eQ integration to be completed by 1 June 2010

• eQ to have positive impact on profits in 2010

Financial 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 2010