Webcast, 21 January 2020 - Avanza · Full year 2019 results presentation Webcast, 21 January 2020....
Transcript of Webcast, 21 January 2020 - Avanza · Full year 2019 results presentation Webcast, 21 January 2020....
Rikard Josefson, CEOBirgitta Hagenfeldt, CFO
Full year 2019 results presentationWebcast, 21 January 2020
Net inflow exceeded 2018 with 18%, whereas customer growth was 10% stronger
2
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
0
20 000
40 000
60 000
80 000
100 000
120 000
140 000
2013 2014 2015 2016 2017 2018 2019
Ne
t in
flo
w, S
EK
m
Ne
w c
us
tom
ers
Customer growth Net inflow
Largest Swedish player in stock market transactions on Nasdaq OMX and First North
3
0,0
2,0
4,0
6,0
8,0
10,0
12,0
14,0
16,0
Q1
-14
Q2
-14
Q3
-14
Q4
-14
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
Ma
rke
t sh
are
, %
Transactions
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
9,0
10,0
Q1
-14
Q2
-14
Q3
-14
Q4
-14
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
Ma
rke
t s
ha
re, %
Turnover
• Market share of 14.5% in terms of transactions and 6.0% in turnover in Q4 2019
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
4
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
5
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
6
% 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
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
7
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
8
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
9
Key to keep on investing and to sustain the low-risk balance sheet
As always… key success factors for Avanza
11
Employee engagement key
FinancialsQ4 and full year 2019 results
12
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
Quarterly revenue development
14
244234
227
271 271
244
267 267 268284
313329
0
50
100
150
200
250
300
350
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
e, S
EK
m
Total income Net brokerage income Income from mutual funds
Net interest income Other commission income
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
Quarterly cost development
16
124131
123
157152 153
135
155164 166
148
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
Op
era
tin
g e
xpe
ns
es
, S
EK
m
Total expenses Non-reccuring items Personnel Marketing Depreciation Other expenses
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
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