Interim Report, 1st January-31th March 2007

Interim Report, 1st January-31th March 2007

•  Operating income increased by 9.5 per cent (103 %) to SEK 135.7 million (SEK
123.9 m).

•  The profit after tax was SEK 55.9 million (SEK 55.3 m).

•  Earnings per share increased to SEK 2.04 (SEK 2.01).

•  Net deposits totalled SEK 1,720 million (SEK 2,320 m), corresponding to 4.0
per cent (7.8 %) of the total value of custodian accounts at the beginning of
the year. 


Comments from the Managing Director
“Avanza gained almost 10,000 new custodian account customers during Q1 - a
record for a single quarter. One of the main reasons for our success is that
Avanza now offers a complete range of saving products. One of the results of
expanding our product range is that pension- and insurance based savings
accounted for almost 30 per cent of net deposits during the period. The number
of fund customers has also increased to over 50,000, and growth was also boosted
by the fact that one fifth of all new custodian accounts come from existing
customers who are transferring more of their savings to Avanza,” says Nicklas
Storåkers, Managing Director of Avanza.

“Both operating income and the net profit achieved record levels for an
individual quarter. It's also particularly gratifying to note that non-brokerage
income covered 109 per cent of costs, which is in line with our goals for 2007. 

“The opening weeks of the second quarter have seen a strong inflow of new
customers and new capital. Interest in endowment insurance, which constitutes an
attractive alternative, tax-wise, to direct savings, has increased dramatically
since the announcement that wealth tax is to be abolished. This spring, Avanza
will be working actively on the sales front, amongst other things, with new
product launches, more IPO's than ever before, and a continued focus on
developing Sweden's best savings services. We also anticipate a substantially
lower rate of cost increases during the second quarter.” 


For additional information, please contact Nicklas Storåkers, Managing Director
of Avanza, tel: +46 70 861 80 01.


Business performance
Cutting edge product innovation is vital if Avanza is to strengthen its position
as The Savers' Bank and to increase its lead over the competition. Products
launched by Avanza during the first quarter include FX trading and management
services for PPM-based savings (Premium Pension Authority). Avanza has also
conducted an intensive programme of sales activities targeting private customers
and has strengthened its distribution channels in the field of occupational
pensions.  

Net deposits totalled SEK 1,720 million (SEK 2,320 m) during the first quarter
of 2007, corresponding to 4.0 per cent (7.8 %) of the total value of custodian
accounts at the beginning of the year. Net deposits in pension and
insurance-based savings totalled 28.2 per cent (20.7 %) of total net deposits. 

The total number of custodian account customers increased during Q1 2007 by a
net of 9,600 (7,400) to 139,600 (130,000 as of 31st December 2006),
corresponding to an increase of 7.4 per cent (7.0 %). Pension- and
insurance-based custodian accounts accounted for 25.4 per cent (19.2 %) of the
total number of new custodian account customers. 

The average custodian account customer's portfolio increased in value by 3.8 per
cent (13.7 %) during the quarter, in comparison with an increase by the OMX
Stockholm Price Index of 5.9 per cent (12.0 %). 

The total value of custodian accounts increased by 7.9 per cent (22.1 %) to SEK
46,600 million, as of 31st March 2007 (SEK 43,200 m as of 31st December 2006).
The total value of custodian accounts in Avanza Private Banking increased by
13.0 per cent (33.0 %) during the period to SEK 15,000 million (SEK 13,300 m as
of 31st December 2006). The total value of custodian accounts in Aktiespar.se
increased to SEK 850 million (SEK 750 m as of 31st December 2006).

In the pension and insurance-based savings sphere, considerable interest in
endowment insurance was seen in conjunction with the announcement of the
abolition of wealth tax, making endowment insurance an extremely attractive and
popular alternative to direct saving in shares and investment funds. Saving
through endowment insurance allows the customer to invest in shares and
investment funds without incurring a capital gains tax liability and without
having to declare individual securities transactions. The customer can now also
withdraw their money immediately. The only tax that the customer pays is a tax
based on the value of the insurance, which currently comprises 0.97 per cent of
the value of the insurance. 

A number of steps were taken within the Avanza Occupational Pension scheme at
the start of the first quarter. Avanza's affiliation to the two largest
collective agreement-based occupational pension plans (SAF-LO and PA03) was
approved, and cooperation agreements have also been signed with a couple of
major insurance brokers. At the beginning of February, the government put a
temporary legislative block on the right to transfer pension insurance, which
had a negative effect on Avanza. This legislative block is, however, expected to
be removed at the end of this year and may result in the opening up of a bigger
transfer market than before. There is, however, considerable uncertainty with
regard to the way in which this issue will play out.

To date, 300 companies with a total of 520 employees (custodian account
customers) have joined the Avanza Occupational Pension scheme and demand remains
good at present amongst potential customers. The total value of custodian
accounts invested in the Avanza Occupational Pension scheme was SEK 70 million,
as of 31st March 2007.  

The total value of custodian accounts invested in pension products on 31st March
2007 was SEK 5,510 million (SEK 4,800 as of 31st December 2006), corresponding
to 11.8 per cent (11.1 % as of 31st December 2006) of the total value of
custodian accounts. Avanza's goal is for pension-based savings to correspond to
a minimum of 13 per cent of the total value of custodian accounts by the end of
2007.  

The range of investment funds offered has been expanded and now comprises 800
funds from over 60 fund management companies. Interest in investing in funds and
equity-linked bonds is constantly increasing and customers are transferring more
and more of this type of saving to Avanza. Avanza has also begun selling
external equity-linked bonds during the first quarter. Interest in Avanza Zero,
the no-fee index fund, is an important factor in the increase in fund-based
savings with Avanza, and Avanza executed 250,000 fund commission notes during
the first quarter of 2007. To date, Avanza Zero has 15,700 unit holders with
Avanza and SEK 640 million in fund capital, including PPM. The return on Avanza
Zero has totalled 34.9 per cent since its launch in May 2006, in comparison with
the OMXS30 index which rose by 34.6 per cent during the same period. 
The total value of custodian accounts invested in funds totalled SEK 7,380
million, as of 31st March 2007  (SEK 6,600 m as of 31st December 2006),
corresponding to 15.8 per cent of the total value of custodian accounts (15.3 %
as of 31st December 2006). The number of custodian accounts with fund holdings
totalled 50,400 as of 31st March 2007 (43,200 as of 31st December 2006),
corresponding to 36.1 per cent (33.2 %) of all custodian accounts.  

Avanza launched asset management services at the beginning of the year. The
asset management refers to customers' PPM savings, to which the customers have
access via Avanza's website. The asset management service follows the investment
advice provided by the stock and fund experts on Avanza's on-line investment
magazine, Placera Nu. Sales of these management services are currently in a
developmental phase and the tempo of sales is expected to increase during the
latter part of the spring.  

Avanza's market share of the Stockholm Stock Exchange (including First North)
was 9.5 per cent (10.8 %) of the total number of transactions and 2.7 per cent
(2.5 %) of turnover. In terms of the number of transactions, therefore, Avanza
continued to be the biggest member overall of the Stockholm Stock Exchange
(including First North).

The operational availability of Avanza's web service during the first quarter of
2007 was 99.7 per cent (99.9 %).

Avanza's custodian account customers averaged 2.39 (2.35) commission notes per
month during the first quarter of 2007, corresponding to an increase of 1.7 per
cent (70.3 %) in comparison with the same period last year. The average
brokerage fee per commission note (excluding fund transactions) for custodian
account customers during the quarter was SEK 104 (SEK 126). Operating income per
custodian account customer totalled SEK 1,180 (SEK 1,130) during the period.  

Borrowing, including client funds, increased to SEK 5,953 million as of 31th
March 2007 (SEK 5,281 m as of 31st December 2006). Lending fell by 3.6 per cent
to SEK 2,207 million (SEK 2,290 m as of 31st December 2006). Borrowing and
lending correspond to 12.8 per cent (12.2 % as of 31st December 2006) and 4.7
per cent (5.3 % as of 31st December 2006), respectively, of the total value of
custodian accounts. Customers' net liquidity hence totalled 8.0 per cent of the
total value of custodian accounts (6.9 % as of 31st December 2006).

Result and position
Operating income increased by 9.5 per cent (103 %) during the first quarter to
SEK 135.7 million (SEK 123.9 m). The growth in income is primarily due to
underlying growth in the number of custodian accounts customers and custodian
account value, but pricing pressure is having a negative effect. Operating
income totalled 0.30 per cent (0.38 %) of the total value of custodian accounts
during the period. Net interest items totalled SEK 40.7 million (SEK 30.6 m)
during the first quarter of 2007, corresponding to an increase of 33.0 per cent
(73.9 %) in comparison with the same period last year. 

Brokerage income, less deductions for direct costs, comprised 53 per cent (57 %)
of total operating income during the first quarter of 2007, whilst non-brokerage
income made up the remaining 47 per cent (43 %).

Non-brokerage income during the first quarter of 2007 comprised 109 per cent
(112 %) of expenses, which is largely in line with Avanza's goal of
non-brokerage income totalling a minimum of 110 per cent of operating expenses.
Non-brokerage income primarily comprises net interest income, investment fund
commissions and fees from corporate finance. 

Expenses during the first quarter of 2007 totalled SEK 59.3 million (SEK 47.8
m), corresponding to an increase of 24.1 per cent (42.7 %) in comparison with
the same period last year. Market costs increased during the quarter to SEK 14.3
million (SEK 6.5 m) and this, coupled with increased staff overheads, accounted
for the majority of the increase in operating expenses. 

The number of full-time employees (excluding those on leaves of absence and
parental leave) at the end of March was 161 (157 as of 31st December 2006).
Avanza will continue to recruit new employees, primarily within the sales
functions. 

The pre-tax profit for the first quarter of 2007 was SEK 76.4 million (SEK 76.1
m), corresponding to an operating margin of 56.3 per cent (61.4 %). The tax
expense was SEK 20.5 million (SEK 20.8 m). 
The result after tax for the first quarter of 2007 was SEK 55.9 million (SEK
55.3 m). Earnings per share totalled SEK 2.04 (SEK 2.01). The return on equity
during the period was 12.1 per cent (14.5 %).  

Depreciation of tangible and intangible assets totalled SEK 2.2 million (SEK 1.8
m) and investments totalled SEK 3.0 million (SEK 3.0 m). In the first quarter of
2007, compared to previous years, Avanza has started to capitalise some of its
internal development costs. These investments totalled SEK 2.0 million (SEK - m)
during the first quarter.

Shareholders' equity totalled SEK 434.8 million as of 31st March 2007 (SEK 488.8
m as of 31st December 2006), or SEK 15.83 (SEK 17.80) per share, and the capital
adequacy ratio was 2.33. The Group's liquid assets totalled SEK 3,644.5 million
(SEK 2,880.2 m as of 31st December 2006).

New capital adequacy ratio regulations were introduced as of 1st February 2007.
Under the new system, a capital adequacy requirement is calculated, and it is
hence not possible to provide figures enabling comparisons with previous capital
adequacy ratios. The new capital adequacy ratio is calculated as the capital
base in relation to the capital requirement. Avanza's capital base totals SEK
343.9 million and its estimated capital requirement is SEK 147.5 million,
yielding a capital adequacy ratio of 2.33. 

Outlook for the future 
Avanza's vision is to be The Savers' Bank and our business concept is to help
our customers do better business. In concrete terms, our ambition is for an
Avanza customer to have more money over for themselves than they would anywhere
else.

Our goal is to have 200,000 custodian accounts customers and a market share of 2
per cent of the Swedish savings market by the end of 2008. Our objective is
hence a long-term increase in income of between 15 and 30 per cent per annum.
The focus of Avanza's operations in 2007 is to get existing customers to
transfer more of their savings to Avanza and on making it easier for a broader
segment of private individuals to start saving with Avanza. Growth to date in
2007 has been strong amongst both existing and new customers. 

Our ambition is to increase Avanza's lead on traditional players in terms of
pricing, functionality and service for web-based savings systems. We anticipate
continued stiff pricing competition and our goal is to continue putting pressure
on prices. Avanza will be launching a number of new services during the second
quarter of the year and will be expanding its direct selling activities with
regard both to savings products that target private individuals and with regard
to occupational pensions. We also intend to strengthen our distribution network
through insurance brokers and, to this end, an improved system support structure
will be launched during the second quarter. Avanza will also lead and
participate in more and larger IPO's than ever before. 

Overall, Avanza believes that the preconditions for customer growth will remain
good for the rest of the year. 

The increase in costs in comparison with the corresponding period last year is
expected to be substantially lower during the second quarter than was the case
during Q1. The previous estimate that costs will not increase by more than 10-15
per cent in 2007 holds good. The goal is for non-brokerage income, i.e.
operating income not directly dependent on the stock market, to total a minimum
of 110 per cent of operating expenses in 2007, thereby ensuring a healthy
stability in results, even during less favourable market conditions. Avanza
does, however, have the option of investing in growth to a greater or lesser
extent than planned, and this may entail a deviation from forecast costs. 


Other information

Annual General Meeting
The Annual General Meeting was held on 22nd March 2007 at 15.00 (CET) in the
Auditorium hall of the Moderna Museet museum in Stockholm. The Annual General
Meeting approved the Board's proposed dividend of SEK 4.00 per share (SEK
2.00/share) and authorised the Board to implement a buy-back programme totalling
a maximum of 10 per cent of the shares in Avanza AB. The authorisation is valid
until the next Annual General Meeting.  

Sven Hagströmer, Jeanette Almberg, Anders Elsell, Mikael Nachemson, Andreas
Rosenlew, Jacqueline Winberg and Niklas Storåkers were re-elected to the Board
in line with the proposal by the Nominating Committee. Hans Bergheim was elected
as a new Member of the Board of Directors.  

Financial calendar
Interim Report, 1st January-30th June	11th July 2007
Interim Report, 1st January-30th September	16th October 2007


Stockholm, 18th April 2007

Nicklas Storåkers
Managing Director

This report has not been subject to review by the company's auditors.