Nordnet AB (publ)

Good morning, everyone, and welcome to the presentation of Nordnet's first quarter of 2025. My name is Marcus Lindberg, and I'm the head of investor relations at Nordnet. With me today, I have our CEO, Lars-Åke Noling, and our CFO, Lennart Krén. Lars-Åke and Lennart will start off by presenting the results, and then we'll have a Q&A session. During the presentation, all participants will be on mute. Then when we come to the Q&A session, you have two alternatives to ask questions. You can click the erase hand button. I'll then unmute you and call your name. Or you can submit a question in writing through the Q&A button. The presentation itself is available on our corporate website, nonetab.com. Okay, let's start the presentation. Lars Åke, please go ahead.

Thank you, Markus. We can go to the next slide. So starting with the highlights, revenue and profit reached record levels during the quarter, and especially strong growth in our core business, the fund and brokerage business. We also see the highest customer growth in net savings in four years. Market turbulence, of course, drives a lot of trading, but it's also weighed on savings capital, and also that's partly due to a stronger SIEC. Low interest rates drove NII headwinds, partly compensated by higher deposits. OPEX excluding Germany was up around 13% due to sequencing on marketing spend, and we expect to meet the FUGIA guidance of around 8% growth excluding Germany. We also launched many nice new features for the more trader segments or high-end segments, and more is to come as well. I'm going to cover that on a separate slide. Also a good start of the Danish pension product, Libremte, leading to record net savings in pensions in Denmark in quarter one, 1.6 billion SEK versus around 900 million SEK the same quarter last year. And we concluded also the first buyback program of 500 million SEK and applied for another program. Go to next. A little bit the impact from the volatility we've seen now in quarter one due to the tariffs. And, of course, this led to higher activity and trading. Trades are up 22% year-on-year. But we also see a slowdown in net buying during the quarter, and especially in March, where we saw a fairly large outflow from funds. And also, we see a rotation from the U.S. to Europe. When it comes to cross-border trading, it's been on an elevated level both in quarter four and quarter one. In quarter four, everyone wanted into the U.S., invest in the U.S., and in quarter one, everyone wants to rotate away from the U.S., leading to higher share of cross-border trading. We also see then a reduction of savings capital following the strength of SEC, but also negative market performance. Strength and SEC effect is pretty large. It's 43 billion SEC during the quarter, both impacting, of course, customers' portfolios that they have in dollars and euro, but also since they consolidate in SEC in order to also get an impact from there. Go to next. Some numbers then for the quarter, strong customer growth, 14% up year-on-year. Also, good growth and savings capital of 9%, mainly from that savings, as markets have been rather flattish year-on-year. Number of trades then up 32% due to high volatility in the markets. Revenue almost 1.4 billion as a record level. We see higher revenues from fund and brokerage, but lower revenue from net interest income due to lower rates. Operating expenses up 15% year-on-year, but excluding Germany, it's around 30%. But that we are that much higher than last year is mainly due to sequence of marketing spend where we have even a distributed marketing spend this year compared to last year where we were back and loaded, especially in quarter four. But like I said, we expect to meet the full year guidance around 8% cost growth, excluding Germany. And also good growth in profitability, close to 1 billion second profitability, which is also a record for the quarter. Go to next. And we see continued good momentum in the growth in customers and net savings. The growth in customer base was almost 70,000 customers in the quarter and 25 billion in net savings. These are very good numbers. But we also saw, even though there was a lot of turbulence in March, we saw good customer growth in net savings also in March. Go to next. And we benefit from having a diversified business for Nordic countries. There is a business model and it enables growth. We see good growth in all countries, especially strong customer growth in Denmark. But savings capital in Denmark was slavish, and that was mainly due to the big drop in share price of Nordisk. We can go to next. Looking at trading, we see a number of trading customers here to the left. The blue line there is growing in line with the growth of the customer base, but also that boosted in quarter one from seasonality and a volatile market. And we also see that trading customer is up a little bit, also due to volatility, and also that cross-border trade that we discussed is also up both in quarter four and quarter one. But this is an effect, I mean, both from a country mix where we have higher share of cross-border trading outside of Sweden, in Norway, Finland, Denmark, but then, of course, boosted by volatility. Trace per day also is considerably up, more than double where we were in 2019. That's also an effect from a growing customer base, more than double the customer base since 19, but also due to the seasonality and volatility in quarter one. But also looking at revenue or income per trade is considerably up since 19, almost 60%, and that's the effect high share of cross-border trading due to the country mix, but also that the mix between retail versus heavy traders is also more retail in the later years. Looking at the fund business, there's also continued good growth here. We see that fund capital is growing almost twice as much as total savings capital. One quarter of the fund capital is non-apprentice funds, which is mainly index funds. And 40%, give or take, of the net buy-into funds is going into the non-apprentice funds. More than half of the customer base now, more than 1 million customer-owned funds. And we see activity also of customers buying and selling funds is steadily increasing. But, of course, we see a drop here in the fund capital due to market decline, but also a stronger SICC. And also net buying for the less advanced is a little bit lower, mainly due to lower net buy than in quarter one this year. What's next? Looking a little bit on net interest income, starting here with the deposits, we see the deposits versus savings capital is up from 7% to 8%. And the full deposits are up from 70 billion to almost 79 billion in the quarter, both from strong net savings, dividends, but also considerably lower net buy in the quarter of equities and funds than we normally, compared to what we normally see. We'll go to next. So looking a little bit on the snapshots here for the different components of NII. We started with a liquidity portfolio snapshot, then 1.5 billion, and that assumes then the volumes we have in quarter one, and also cash allocation, credit spreads, and market cost services estimates for the three-month IBER interest rates. But we see here that the liquidity portfolio is up almost 10 billion in the quarter, mainly from deposits. But on the other hand, we see the interest rates pulse now is lower than we saw in quarter four due to expected impact on the economy from tariffs. So next, I look at the loan portfolio snapshot for 2025. It's estimated to yield 1.1 billion SEC, assuming on the quarter one volumes and interest rates as per 1st of April. And the interest rates pass that we saw on the previous page with a pass-through of money lending of 50% and mortgage 100%. And here we see a slight drop in the margin lending volumes in the quarter. It's mainly due to a stronger SEC, and we consolidated the margin lending from Norway, Denmark, Finland into SEC, impacting that. Of course, the main sensitivity here is the growth on margin lending volume, but likely if the markets calm down a little bit, we'll see a continued growth in margin lending. Also a low-risk lending portfolio in general with a loan-to-value of around 40% for both margin lending and mortgage. And in spite of this heavy turbulence, we haven't seen any credit losses on margin lending. Go to next. And deposit interest cost snapshot is estimated to be around 400 million in 2025 and assuming 2025 volumes and 100% pass through of the IBOR changes. And here the main sensitivity is, of course, the amount of capital on the savings accounts. But that's likely to decrease over time when interest rates decrease, then the customers keep the money on the trading accounts instead. And we've already seen that starting to take effect here in the last quarters. So, in summary, we're looking at the revenues, I mean, Brazilian revenues bolstered by our diversified revenue streams, and we see good growth in all revenue streams, both the net interest income, the fund business, and also the brokerage business. And looking down in the graph to the right, we see also a little bit uptick in margin on trading, and that's due to high shelf cross-border trading, and also that the retail versus heavy traders is favorable mix. Also, a little bit higher fund margin due to buy and sell of non-domestic funds. Go to next. So, then all that, if you boil everything down to numbers, we have, as you see, very strong revenue growth since 19, around 30% per year. to increase revenue from 1.5 billion to over 5 billion now in 2035, the last 10 months, while cost growth is fairly limited, around 6%. So it's a true position of profitable growth where most of the top-line growth ends up on the bottom line. One of the main focus areas for us this year is to launch new features and functions for the high-end segment. So customers trading a bit more. And we have launched, as you know, the analyst recommendations and price targets in quarter four last year. And it's been very popular with more than 60 million views and 500,000 unique users in quarter one. So it's a very well-received feature. We also, during the quarter now, launched algorithmic order executions with the VWAP, TWAP, but also you can access full liquidity through all the dark pools. Also very good take-up and reception of that service. And just before Easter here, we launched US pre-market trading from 1 o'clock, so you can start trading US equity already from 1 o'clock on the platform. But we don't stop here. There's more to come. During the quarter, we're going to launch FX accounts on ISK and KF. We're also going to launch additional markets for electronic trading in Europe. And I think that's a big interest in Europe now with the shift from U.S. to Europe. And we're also going to launch enriched company data, both historic data and forward-looking data, and historic data we actually launched today. So with that, I hand over to you, Lennart.

Thank you, and good morning, everyone. We can go to the next slide. And as expected, I would say, all according to plan, we still have a very strong capital situation. Also, the liquidity situation is very good. where the leverage ratio is the constraining part. And that has, of course, decreased a little bit due to the increase of deposit, but it's still on a solid level with 5.4% with a requirement of 3.5%. So it's a very good situation we have here, which enables us to continue the dividend policy that we have, paying out 70% of the net earnings and also adding a new program whenever it is needed. approved by the SFSA by Bank of Shares for this year as well. Or it is planned to be in line with last year. So that is where about we are. But as a summary, very good and strong capital and liquidity situation gives us a lot of flexibility to do work with. Thank you.