Strong financial result for Nordnet in the third quarter - Nordnet Bank AB
2020-10-23

Strong financial result for Nordnet in the third quarter

Today Nordnet publishes its interim report for the period January-September 2020. The full report is available at www.nordnetab.com

–  Nordnet’s business developed well in the third quarter. We are seeing continued strong interest in savings and investments, and a high level of activity in the market. In the third quarter, we welcomed more than 50,000 new savers to our platform, and we now have more than 1.1 million customers in total. Our customers’ savings capital amounts to a record SEK 478 billion. Combined, the high levels of activity and growth gave a strong financial result for the third quarter, says Lars-Åke Norling, CEO of Nordnet.

Income totalling SEK 617 million, combined with a stable cost level, gave a profit before tax of SEK 337 million, which is an increase of 265 percent, compared to the third quarter 2019.

–  We are continuing to develop the customer experience and have set our sight into building the world’s best platform for savings and investments. Our websites and app are being continuously improved through minor and major releases affecting navigation, as well as concrete products and functions. Worth mentio­ning during the quarter is a new function for initiating monthly savings based on the customer’s individual savings targets, savings horizon and preferences in terms of sectors or focus. We have also expanded our platforms with a variety of content intended to inspire better investment decisions, says Lars-Åke Norling, CEO of Nordnet.

Net savings for the quarter amounts to almost SEK 10 billion and savings capital is totalling SEK 478 billion. The annual growth in customers amounts to record high 27 percent and in total Nordnet has 1.1 million savers on the platform. Nordnet’s loan port­folio is now approaching SEK 18 billion. In one year, total lending has grown by 20 percent, with residential mortgages accounting for the largest increase.

–  Resi­dential mortgages are an exciting area and we have well succeeded here in our role as innovators in a con­servative industry. To date, we only offer this product in our Swedish store, which is also where we have the market’s lowest interest rates. Although, we are also exploring how we can launch residential mortgages in Norway and Finland in the future, in our role of chal­lenger to the traditional players, says Lars-Åke Norling, CEO of Nordnet.

Highlights during the quarter

  • Strong growth in the business with savings capital and lending reaching new top levels, continued major inflow of new customers and high levels of trading activity
  • Continued improvements of the platform – new function for monthly savings, launch of proprietary index funds, integration of the Nordnet blog on the customer site, and additional inspiring functions in the app
  • Strong financial results – increased income and stable cost level give an operating profit of
    SEK 337 million

Financial results in brief, July-September 2020 (July-September 2019)

  • Operating income amounts to SEK 617.1 million (371.4)
  • Operating expenses before credit losses amounted to SEK 277.1 million (273.7)
  • Operating profit amounted to SEK 336.6 million (92.3)

This information is information that Nordnet AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08.00 CET on October 23, 2020.

For more information, please contact:
Johan Tidestad, Chief Communications Officer
+46 708 875 775, johan.tidestad@nordnet.se

Nordnet is a digital bank for savings and investments and we operate in Sweden, Norway, Denmark and Finland. With user-friendliness, availability, a broad offering and low prices, we give our customers the opportunity to achieve their savings ambitions. Visit us at www.nordnetab.comwww.nordnet.sewww.nordnet.nowww.nordnet.dk or www.nordnet.fi.