• Operating Income: Increased by 8% since Q4.
• Net Profit: Increased by 13% compared to last quarter and 28% compared to Q1 last year.
• Return on Equity: 42%, in line with the previous quarter.
• Earnings Per Share: SEK450, 13% higher than last quarter and 21% higher than the same quarter last year.
• Net Inflow: SEK22 billion, in line with Q1 last year.
• Savings Capital: Declined by 3% to SEK931 billion.
• Brokerage Income: Increased by 26% in Q4.
• Fund Margin: Remained stable at 25.2 bps compared to 25.4 bps last quarter.
• Interest Expenses: Decreased due to deposit interest rate cut.
• Leverage Ratio: Good headroom to the total requirement of 3.5%.

Release Date: April 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Avanza Bank Holding AB (FRA:1JJA) reported the highest quarterly result in its history, driven by increased trading activity and resilient net interest income (NII).
• The company added over 62,000 new customers, marking the strongest quarter since the pandemic, with a net inflow of SEK22 billion.
• Avanza Bank Holding AB (FRA:1JJA) made significant progress on strategic priorities, including high-paced innovation and several product launches.
• The company successfully launched FX accounts for Private Banking and Pro customers, enhancing its offerings.
• Avanza Bank Holding AB (FRA:1JJA) maintained a strong return on equity at 42%, with earnings per share increasing by 13% compared to the previous quarter.

Negative Points

• Savings capital development was negatively impacted by US equity markets and a stronger Swedish krona, resulting in a 3% decline to SEK931 billion.
• The company experienced login issues during periods of high customer activity, highlighting potential areas for improvement in platform stability.
• Net fund commissions decreased slightly due to a challenging macro environment, with declining stock markets and a strengthened Swedish krona.
• The average rate for internally financed lending decreased, leading to a 7% drop in income from lending.
• The process of discontinuing external savings accounts is expected to take until spring 2026, with customer behavior ultimately influencing deposit transfers.

Q & A Highlights

Q: Can you elaborate on the login issues reported during high activity on the platform, and are there any investment needs to address this? A: We experienced high customer engagement due to trade news, which led to some login issues. Most customers had a smooth experience, but some faced problems. We prioritize security and need to fine-tune our systems to prevent this in the future. No significant investment is needed; it's more about improving our current setup. - Gustaf Unger, CEO

Q: Was the high activity broad-based or focused on active traders? A: The activity was broad-based, involving hundreds of thousands of customers checking portfolios and trading. Towards the end of the quarter, we noticed increased activity from heavy traders who had been inactive for some time. - Gustaf Unger, CEO

Q: Can you discuss the impact of launching FX accounts for Private Banking and Pro customers on FX income? A: The launch was well-received, with slow but steady adoption. While it may reduce FX income initially, we expect dynamic effects like increased customer activity and new customer acquisition to have a positive overall impact. There are no immediate plans to extend this to other customer groups. - Gustaf Unger, CEO

Q: When will the headwind from lower rates on NII fade, and when will NII trough? A: We haven't seen the full effect of lower rates yet, but we believe we are near the bottom for NII, assuming no further rate cuts. Other factors like volume effects and spread developments will also influence NII. - Anna Casselblad, CFO

Q: Why was there no growth in net savings in Q1 despite high disposable income? A: We haven't seen indications of losing volumes to competitors. Speculatively, strong capital gains in 2024 may have led to tax payments affecting net savings. Long-term, we remain positive about net inflows, though market uncertainties could impact short-term behavior. - Gustaf Unger, CEO

Q: Can you comment on the stickiness of Avanza markets revenues and the corporate finance pipeline? A: Avanza markets revenues are correlated with overall activity, with both fixed and variable income components. The IPO window was open in Q1, but current market conditions are calm, affecting the corporate finance pipeline. - Anna Casselblad, CFO

Q: What is the status of locating a new home market outside Sweden? A: We have narrowed down candidates and have a team in place, but we are currently focused on opportunities in Sweden. We will expand abroad when the timing is right. - Gustaf Unger, CEO

Q: How do you plan to handle the internalization of third-party deposits? A: If all third-party deposits are internalized, it would be favorable but require additional capital. We may consider using an AT1 to strengthen the balance sheet. We aim to manage this transition in an orderly manner. - Gustaf Unger, CEO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.