“The third quarter was a positive period for Nordnet. We have a high pace in our product development, a steady influx of new customers and savings, and during the quarter we passed the milestone of 1.8 million customers. We achieved record revenue of slightly more than SEK 1,150 million and with the operating profit amounting to approximately SEK 800 million, we presented one of the best financial quarters in our history. On the product side I would like to highlight the launches of our endowment wrapper product in Finland and the fund Nordnet Global Index 125 which is unique in its kind outside the regular pension system”, says Lars-Åke Norling, CEO of Nordnet.
“Nordnet’s capital situation is strong and during the quarter the Swedish Financial Supervisory Authority decided to lower our capital requirements. As of the end of the third quarter Nordnet’s capital exceeds the new capital requirement by SEK 2 billion”, says Lars-Åke Norling, CEO of Nordnet.
“We have decided to perform a strategic review of our personal loan operations, including the possibility of divesting these operations. Personal loans account for steadily diminishing part of our operations and, in our assessment, the product lacks a sufficiently strong connection to our core operations. No decisions have been made and we will inform the market if and when any such decisions are made”, says Lars-Åke Norling, CEO of Nordnet.
Highlights during the quarter
- A strong financial quarter with income at a new record-high level and with an improvement in operating profit of more than 60 percent compared with the third quarter of 2022.
- Significantly improved net interest as a consequence of higher interest rates and increased lending.
- Positive net savings and good customer growth – Nordnet passes the 1.8 million customers milestone.
- Uncertain macro situation and low volatility in the stock market are leading to lower trading activity.
- Investment insurance launched in Finland – a key step towards a full-scale offering in all markets.
- Good cost control, expenses in line with financial targets.
- A strong capital situation and lower capital requirements generate scope and opportunities for a modified capital structure.
- A decision has been made to initiate a strategic review of the personal loans business area.
Financial results in brief, July-September 2023 (July-September 2022)
- Adjusted operating profit of SEK 807 (491) million
- Operating income of SEK 1,155 (812) million
- Adjusted operating expenses of SEK -324 (-304) million
- Earnings per share after dilution of SEK 2.49 (1.54)
Presentation for investors, analysts and media
CEO Lars-Åke Norling and CFO Lennart Krän will present the report and answer questions on 24 October 2023 at 10 am CET via Zoom. The presentation will be held in English. Please register here.
This disclosure contains information that Nordnet is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 24-10-2023 08:00 CET.