Nordnet Year-End report January-December 2016

October-December 2016

  • Operating income decreased by 3 percent to SEK 314.0 million (322.4)
  • Operating profit decreased by 5 percent to SEK 107.7 million (113.2) 
  • Profit after tax for the period was unchanged and amounted to SEK 87.4 million (87.5)
  • Earnings per share before and after dilution were unchanged and amounted to SEK 0.50 (0.50)

January – December 2016

  • Operating income decreased by 3 percent to SEK 1,196.0 million (1,238.1)
  • Operating profit decreased by 18 percent to SEK 367.7 million (448.6) 
  • Profit after tax for the period fell by 17 percent to SEK 297.0 million (357.1)
  • Earnings per share before and after dilution decreased 17 percent to SEK 1.70 (SEK 2.05 before dilution and SEK 2.04 after dilution)

Highlights from the fourth quarter

  • Public offer for all outstanding shares in Nordnet at SEK 38 per share 
  • Nordnet’s Board of Directors proposes a dividend of SEK 1.00 (1.30) per share
  • Nordnet named “Sweden’s most transparent bank” by SKI
  • Large influx of new customers – 16 percent growth in the customer base in the past 12 months

Håkan comments on the fourth quarter 

The 2016 trading year, as well as the fourth quarter, were mainly positive periods for the Nordic financial markets. Three out of four stock exchanges totalled an increase for the full-year, with Copenhagen as the exception. But the way there was shaky and the stock exchanges faced many concerns in the course of events. Brexit and the U.S. presidential election were perhaps the two most noted events, both of which entailed surprises for the financial markets. From our local horizon, a strongly increasing oil price and a price collapse in the Nordic region’s largest company Novo Nordisk were some of the events that affected the market trend the most.

Savers were active during the past year, and made major relocations of their portfolios. We experienced the largest number of transactions ever for a single quarter in October-December with 6.2 million trades. Our core business is the online trading in shares and mutual funds, but with a strong offering in loans, we get a more complete service and build a more well-diversified business. As a complement to the margin lending and personal loans, we launched mortgage in the Swedish market in 2016. Mortgage has had a strong start with nearly SEK 1 billion in lent capital today. In total, our loan portfolio has grown by 30 percent the past 12 months, and today amount to more than SEK 9 billion. The savings capital our customers have entrusted us with has also had strong growth and currently amounts to a record SEK 235 billion.

During the year and the quarter, we had a very strong inflow of new customers to Nordnet. With 21,200 new customers in the quarter and more than 76,000 for the full-year, our customer base grew by 16 percent in the past year, which more than meets our goal of double-digit growth. Above all, I am pleased that we achieved a higher level than before in the Swedish market.

From a financial perspective, the quarter ended with a profit before tax of SEK 87.4 million and a profit margin of 28 percent. Compared with the same quarter in 2015, our income and expenses are slightly down, and the bottom line is unchanged. Our main focus for investments is the same as before – IT and product development. The top priority is a new website. We have launched a beta version for a small number of internal and external users, and are continuously taking in feedback, rebuilding and adding new functions.

Every year, Svenskt Kvalitetsindex (SKI) conducts a survey of consumer attitudes to banks, with a focus on services in savings. This year, Nordnet was named Sweden’s most transparent bank, which makes me very proud. I believe that transparency – where customers understand their financial partners’ business model and where the savers’ success goes hand in hand with the bank’s – is important to build customer satisfaction.

Lastly, a few words on the bid situation. At the end of October, our main owner Öhman, and the venture capital firm Nordic Capital, placed a public offer on all shares in Nordnet. After the end of the acceptance deadline, it was announced that the bidders control more than 90 percent of the shares in Nordnet and intend to delist the company. We are heading for an exciting new future with strong new owners. Change is important to develop, regardless of whether it is brought about by clear demands from consumers, new regulations, tougher competition or a changed ownership structure. 

Håkan Nyberg

PS. On 16 February (Stockholm) and 15 March (Oslo), we will be holding the Nordic region’s largest savings event – Nordnet Live. I will be there and hope you have a chance to come by.

Presentation to analysts, shareholders and the media 

CEO Håkan Nyberg and acting CFO Robert Stambro will be presenting the report and answering any questions on Tuesday 31 January 2017 at 10.00 a.m. CET via a telephone conference. The presentation will be made in English and can also be followed online. 

Telephone number for participation by telephone: +46 8 5664 2662 (Sweden) or +44 2030 089 819 (UK). 

Follow the presentation on https://wonderland.videosync.fi/nordnet-q4-report-2016 

For further information, please contact: 

CEO Håkan Nyberg, + 46 703 970 904, hakan.nyberg@nordnet.se 

Acting CFO Robert Stambro, +46 703 504 024, robert.stambro@nordnet.se  

This information is such that Nordnet AB is obliged to publish under the EU’s Market Abuse Regulation and the Securities Market Act. This information was submitted through the efforts of the above-mentioned contact persons for publication on 31 January 2017 at 8.00 a.m. CET.

Nordnet is a bank for investments and savings with business in Sweden, Denmark, Finland and Norway. The idea behind Nordnet is to give customers control of their money, and the goal is to become the no. 1 choice for investments and savings in the Nordics. Nordnet AB (publ) is listed in Nasdaq Stockholm. Visit us at www.nordnetbankab.wpengine.com, www.nordnet.se, www.nordnet.no, www.nordnet.dk or www.nordnet.fi.