Preliminary Financial Statement 2011

Preliminary Financial Statement 2011


  · Operating income increased by 12 per cent (21 %) to SEK 695 million (SEK 621
m)
  · The profit after tax increased by 7 per cent (19 %) to SEK 291 million (SEK
271 m)
  · Earnings per share incresaed by 5 per cent (18 %) to SEK 10.28 (9.77)
  · Net inflow totalled SEK 6,460 million (SEK 9,570 m), corresponding to 8 per
cent (16 %) of the total savings capital at the beginning of the year
  · The number of accounts increased by 18 per cent (26 %) to 417,200 (352,200),
and the total savings capital decreased by 10 per cent (+34 %) to SEK 74,200
million (SEK 82,000 m)
  · The Board proposes that a dividend of SEK 10.00 (9.50) per share be paid

Fourth quarter

  · Operating income decreased by 6 per cent (+15 %) to SEK 157 million (SEK 167
m)
  · The profit after tax decreased by 19 per cent (+6 %) to SEK 55 million (SEK
68 m)
  · Earnings per share decresaed by 21 per cent (+6 %) to SEK 1.94 (SEK 2.45)

 
Comments from the Managing Director

”The year 2011 has been a turbulent year on the stock market. Trading activity
as well as net inflows in the savings market has been weaker than normal, which
is expected to depend on the poor performance of the stock market as well as the
increase in interest rates during the first half of the year. As a result, more
people are choosing to save by amortize their mortgage loans. In spite of the
stock market falling 17 per cent during the year, we managed to increase profits
in 2011.

Avanza Bank continues to win market shares, which is especially visible for
savings accounts and pension- and insurance savings, where the number of new
accounts grew by 79 per cent respective 23 per cent during 2011. Still, we did
not manage to achieve our growth targets for 2011. We are not satisfied with
that and have conducted a thorough cost review going into 2012. We expect to
reduce costs significantly during 2012 compared to the fourth quarter of 2011”,
says Martin Tivéus, Managing Director of Avanza Bank.

”In early January, the new investment savings account (ISK) was launched in the
market. The ISK has been well received and for the first two weeks we have
received 2 300 accounts and SEK 580 million in net inflows in ISK. As Avanza
Bank offers the lowest fees for ISK in the market and also able to provide
credit associated with the account, we expect a continued strong growth in ISK
in 2012. Net inflows in ISK and the endowment insurance is expected to be far
less volatile this year due to new tax rules. We expect continued strong growth
in Sparkonto+ which during the last quarter of the year grew by SEK 1 100
million and our ambition is to expand the number of partners to enhance both the
capacity and the customer offering during 2012.”

”Although the savings capital at the beginning of 2012 is lower than at the
beginning of 2011 due to a negative stock market trend during the year, we
believe, given unchanged key interest rates, that we have a opportunity to
increase profits in 2012. Early this summer, the so-called Transfer Right
Committee is expected to present a proposal regarding extended transfer rights
for pension savings. The pensions and insurance market is 90 per cent bigger
than the market for direct equity and investment fund-based saving. Avanza Bank
has the market’s lowest fees for pension saving and an extended transfer right
would enable the customers to move all or part of this savings to Avanza Bank.
This is expected to strengthen Avanza Bank’s long-term growth potential and,
over time, good ability to reach its long-term profit growth to total between 15
and 20 per cent per annum.”

”Finally, I would like to highlight the 2011 result of the Swedish Quality Index
survey of customer satisfaction among Swedish savers. It showed not only that
Avanza Bank still has the by far most satisfied savers in the market, they have
become even more satisfied during the year, which is unique among Swedish banks
during 2011.”
 

For additional information:
Martin Tivéus, Managing Director of Avanza Bank, tel: +46 (0)70 861 80 04
Birgitta Hagenfeldt, CFO of Avanza Bank, tel: +46 (0)73 661 80 04

The information contained in this report comprises information both that Avanza
Bank Holding AB (publ.) is obliged to provide and that it has chosen to provide
in accordance with the provisions of the Swedish Securities Market Act and the
Swedish Financial Instruments Trading Act. The information has been released to
the market for publication at 08.15 (CET) on 19th January 2012.