October – December 2015
Operating income increased by 14 percent to SEK 325.7 million (284.5)
Operating profit rose by 18 percent to SEK 113,2 million (95.6)
Profit after tax for the period rose by 9 percent to SEK 87.5 million (80.0)
Earnings per share before and after dilution rose by 9 percent to SEK 0.50 (0.46)
January – December 2015
Operating income increased by 15 percent to SEK 1,249.4 million (1,085.8)
Profit after tax for the period rose by 29 percent to SEK 357.1 million (276.6)
Earnings per share before dilution rose by 30 percent to SEK 2.05 (1.58)
Earnings per share after dilution rose by 29 percent to SEK 2.04 (1.58)
Highlights from the fourth quarter
Launch of Nordnet Supermarket – commission-free trading in over 6,000 exchange-traded products
Nordnet’s customers carried out 5.7 million transactions – a quarterly record
Lending exceeded SEK 7 billion
Nordnet’s Board of Directors proposes increasing the dividend to SEK 1.30 (1.00) per share
CEO Håkan comments Q4
Events in the global economy and on the stock market are currently at the forefront of most peoples’ minds. During the quarter there has been much talk of the slide in oil prices, China’s economic slowdown, persistent historically low interest rates, the high influx of new companies on the stock market and spectacular price trends for particular companies and sectors. There is a generally heightened level of interest in saving in shares and mutual funds, which means growth for our business. Some 14,400 Nordic private individuals have chosen to start saving on Nordnet’s platform over the past three months, and 2015 saw our customer base grow by 13 percent.
Our revenue for the October–December period is SEK 325 million, which, in terms of income, is one of our best quarters ever. The primary reason is that during the quarter our customers have been far more active on the stock market, which has generated more commission income. In the October–December period, our customers completed an impressive 5.7 million transactions, which is a new record. Our lending continues to increase and in Q4 passed SEK 7 billion for the first time. However, generally low interest rates means our revenue from net interest is failing to increase to the same extent.
Costs for the quarter totalled SEK 212 million, which is higher than in previous quarters. The main explanation behind this is that as a company we have chosen to continue to maintain a high pace of change. We want to enhance our organisation to enable us to deliver new products more quickly, and have therefore invested in personnel in the areas of IT and products, as well as infrastructure in the form of IT investments and skills development.
When we ask our customers what they consider to be important in their choice of bank, price and product often top the list. Nordnet continues to challenge outdated fee structures and put pressure on the price of investment and saving services. We have been the price leader in share trading and pension saving for some time, and with our four Super Funds, we are the only bank that offers fee-free index savings with exposure to all of the Nordic countries. In the first half of 2015 we launched a low-interest loan with securities as collateral on all of our four markets. In Sweden it is called the “Knockout loan”. This product allows us to offer customers who have well-diversified savings the very lowest lending rates available in the Nordic markets. Our Swedish personal loan product, “Toppenlånet”, is also a price leader for customers wishing to take out an unsecured loan. The start of November saw the launch of the “Nordnet Supermarket” marketplace in Sweden. A collaboration with five leading issuers means we are now able to offer our customers commission-free trading in over 6,000 exchange-traded products, e.g. warrants and certificates.
Over the past few years we have launched a vast number of new savings and loan products. The focus in product development is now on the user experience – the store where we sell our producs. We have initiated work on developing a new website and will be presenting some new features during the year. But we will never hold a grand opening of an entirely new website. We develop ideas, test them out with a customer panel and integrate what works into the existing structure.
My most important task as CEO is to see that we have satisfied customers. Satisfied customers mean growth. I believe the key to achieving this is to continue delivering innovative and user-friendly products and to offer them at affordable prices. In short giving you, the customer, more bank for your money – More Bank for the Buck.
If you have any comments or questions about our business that you would like to share, you can find me on Twitter.
Presentation to analysts, shareholders and the media
CEO Håkan Nyberg and CFO Jacob Kaplan will be presenting the report and answering any questions on Friday, 29 January 2015 at 10.00 a.m. CET at a telephone conference. The presentation will be made in English and can also be followed online.
To participate by phone, call +46 8 5664 2652 (Sweden) or +44 2034 262 845 (UK). Follow the presentation at http://financialhearings.nu/160129/nordnet/