July – September 2017
• Operating income increased by 0.2 percent to SEK 290.3 million (289.6)
• Operating profit decreased by 40 percent to SEK 50.6 million (84.0)
• Profit after tax for the period fell by 37 percent to SEK 43.4 million (69.2).
• The building of the new Nordnet has commenced, with extraordinary expenses in the third quarter amounting to SEK 5.6 million
January – September 2017
• Operating income increased by 3 percent to SEK 911.0 million (882.0)
• Operating profit decreased by 26 percent to SEK 193.3 million (260.0)
• Profit after tax for the period fell by 23 percent to SEK 161.7 million (209.6)
• Extraordinary expenses related to the building of the new Nordnet amounted to SEK 40.3 million for the period January-September
Highlights from the third quarter
• Partnership with IPsoft on artificial intelligence
• Launch of the robot advisor Robosave and deposits through Swish
• Premiere for aksjesparekonto (ASK) in Norway
• Broadened customer offer in mortgage and occupational pensions in the Swedish market
Peter comments on the quarter
The new Nordnet has strong owners, a clear direction, a focus on technological development and no time to waste. Our overarching ambition is to build the world’s best customer experience in savings and investments. To succeed in this, we need to maintain the fastest pace of development in our market, and during the quarter we demonstrated that we are serious in this ambition.
In early August, we announced a partnership with the company IPsoft on artificial intelligence, AI. Within this year, we will implement AI in our services, starting with the onboarding process, that is, helping customers get started with their savings. As the first Nordic bank, we have launched a robot advisory service – Robosave. By answering 12 simple questions about savings targets, risks, amounts and savings horizon, our customers are provided with an individual savings profile, which is translated into savings in exchange traded funds. Robosave automatically buys and sells, builds the portfolio and ensures that the customer’s risk always matches the savings profile.
In September, a new account format was introduced in the Norwegian market in the form of “aksjesparekonto” (ASK). The account can be seen as the equivalent to the Swedish ISK, and thanks to its simple taxation model, it has quickly become a great success and broadened savings to new groups. Nordnet’s ASK leads the way in terms of pricing and has been named by Norwegian financial magazine Finansavisen as offering the best selection of investments.
In the Swedish market, we have introduced a more accessible version of our mortgage with lower interest rates both for customers with extensive savings and those with less savings. In the area of pensions, we have, during the quarter, entered into a partnership with Söderberg & Partners. This provides the customers with occupational pensions savings with access to advice in person on savings and insurance, combined with access to Nordnet’s digital platform and broad offering. We are also the first bank to introduce the possibility for customers to deposit money into their Nordnet accounts using Swish – a seemingly small but important innovation in our efforts to remove friction from our most common customer journeys.
The third quarter was an intensive period in Nordnet’s history, and we will not reduce the pace in the future. By the year-end, we will have a new web and app in place in all of our markets, and, in the field of digital financial advisory services, Robosave is only the first launch in a series of products where the objective is to guide our customers to simpler and smarter savings.
The process of change that we have initiated is progressing as planned and requires heavy investment in new technology, automated processes and reinforced skills in a number of areas. Our costs are 17 percent higher than in the corresponding quarter last year, and income is at a marginally higher level. Our underlying growth is strong with a 17 percent increase in the customer base over the past 12 months, higher net savings than previously and a new record level in savings capital of SEK 267 billion.
My mission is to take Nordnet to the next level and to show the strength in the combination of a strong brand and a Nordic savings market where we have only begun to realize our potential, despite more than 640,000 customers. We have begun our strategic transition towards addressing a broader target group, and we have ONE plan and ONE team with which we will realize our ambitions. Together with you as our customer, we are building the new Nordnet.
Peter Dahlgren, CEO, Nordnet