Interim Report January – June 2014

  · Net inflow totaled SEK 9,560 million (SEK 6,150 m), corresponding to 8 (7 %)
per cent of the total savings capital at the beginning of the year
  · The number of customers increased by 8 (5 %) per cent to 342,500 (316,500 as
of 31 December 2013)
  · The total savings capital increased by 16 (10 %) per cent to SEK 130,100
million (SEK 112,600 m as of 31 December 2013)
  · Operating income increased by 17 (–6 %) per cent to SEK 337 million (SEK 287
m)
  · Operating margin was 42 (31 %) per cent
  · The profit after tax increased by 57 (–21 %) per cent to SEK 121 million
(SEK 77 m)
  · Earnings per share increased by 57 (–22 %) per cent to SEK 4.18 (SEK 2.67)

Second Quarter

  · Operating income increased by 20 percent (–3 %) to SEK 164 million (SEK 137
m)
  · The profit after tax increased by 75 percent (–16 %) to SEK 56 million (SEK
32 m)
  · Earnings per share increased by 73 percent (–17 %) to SEK 1.92 (1.11)
Comments from the CEO

”Our brand promise, more money for you, less for the bank, continues to attract
new customers to Avanza. With a new website, a new office in Gothenburg and a
broader customer offering, it is with pride that we can look back over a first
half year characterised by the highest growth ever in terms of the number of
customers and net inflow of capital. During June, we launched, as the first bank
in Sweden, foreign exchange trading, and we also launched a new website for our
corporate customers within our Occupational Pension offering.

That our efforts in occupational pensions bear fruit can be seen on the amount
of pension capital transferred to Avanza which increased by 45 percent during
the first half of the year. After the first quarter we were the fourth largest
pension company in the country in terms of net transferred capital.

Raising our growth ambitions

After having welcomed 11,500 new active customers during the second quarter, we
can summarise growth after the first half year at 26,000 net new customers, an
increase of 73 percent compared with the first half year 2013. Thereby, we have
by the end of June already reached our long-term annual growth target of
20,000–30,000 customers. Our customer growth is usually positively impacted by a
strong stock market and low interest rates. At the same time, we believe that
the higher growth rate during the first half year is to a large part structural.
We see this as a result of our new website and a more competitive customer
offering as well as a higher brand awareness and increased market presence.
Consequently, we have decided to increase our long-term growth target to
30,000–40,000 new customers per year. We will also increase our annual long-term
target to attract at least 5 percent of the total net inflow to the Swedish
savings market to at least 7 percent, which is in line with the 7.5 percent that
we have attracted during the last 12 months. The total net inflow during the
first half year amounted to 9.6 billion, 55 percent higher than in the same
period 2013.

An increased growth rate places high demands on both the organisation and its
processes and systems. In order to ensure the highest possible quality of
service to our customers while raising our growth ambitions, we intend, during
the forthcoming year, to expand our IT development capacity to more quickly
undertake possible improvements of efficiency and quality, as well as continue
to further develop our customer offering and customer interface. As a result, we
foresee cost increases of 6 percent for 2014 compared with the previously
communicated 3–5 percent, with an increase in costs of 6–8 percent in 2015.

Decrease in the repo interest rate presses net interest income

The Swedish Central Bank’s decrease of the repo rate at the beginning of July
will impact net interest negatively during the remainder of the year and, most
likely, during all of 2015. At the same time, this can have a positive effect on
the stock market as the yield on interest will be less attractive. The repo rate
decrease also implies that we lower interest rates on the Super Mortgage, our
mortgage products aimed at Private Banking customers, to a record low level of
1.24 percent. At the same time, we raised the ceiling on the lending volume by
SEK 1 billion to be able to meet the demand and, thereby, further improve our
value proposition to an important customer segment.”

Stockholm, 11 July 2014

Martin Tivéus, CEO Avanza
For further information please contact:

Martin Tivéus, CEO
+46 (0)70 861 80 04
martin.tiveus@avanza.se

Birgitta Hagenfeldt, CFO
+46 (0)73 661 80 04
birgitta.hagenfeldt@avanza.se
Avanza is an Internet bank founded in 1999. The Parent Company, Avanza Bank
Holding AB (publ), is listed on the Stockholm Stock Exchange. Avanza’s vision is
that as a customer you will have more money in your pocket than if you banked
with other banks or institutions. The services include, amongst other things,
saving in shares, funds, savings accounts and a strong pension offering. Avanza
has more than 340,000 customers and more than SEK 130 billion in savings
capital. This is equivalent to just over 2 percent of the Swedish savings
market. Avanza is the largest in terms of the number of transactions of Swedish
banks on the Stockholm Stock Exchange. During the last four years Avanza has won
SKI’s (Swedish Quality Index) award, “Year’s Most Satisfied Savings Customers”.
For more information visit: www.avanza.se