Nordnet AB (publ)

Okay, good morning everyone and welcome to the presentation of Nornet's second quarter of 2025. My name is Marcus Lindberg and I'm the head of investor relations at Nornet. With me today as usual I have our CEO Lars Håkenåling and our CFO Lennart Kræn. Lars Håken 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 and then when we come to the Q&A session you have two alternatives to ask questions so you can either click the raise hand button in zoom and I'll then unmute you and call your name or you can submit a question in writing. The presentation itself is available on our corporate website NornetAB.com. Okay, let's start the presentation. Lars Håken, please go ahead.

Thank you Marcus. Go to the next slide. Starting with some key highlights, we had seen a stable financial performance with continued growth in core business and both revenue and profit in line with quarter two last year. Positive net savings and good customer growth overall, strong trading activity and continued robust revenue margin from an increasing customer base and also higher share of cross-border trading. We see a decline in net interest income due to low interest rate levels partly compensated by higher deposits. OPEX excluding Germany is up .7% due to sequencing of marketing spend last year and we expect to meet the full year guidance of around 8% cost growth excluding Germany. Also high activity in releases and product development where we have launched eight new trading venues in Europe in our app and web and also currency account in the wrappers in Sweden and much more. I'll come back to that. We also launched a new private banking tiering with clearly defined benefits in Sweden that has been well received. Overall a very strong capital situation. We have the dividend of 8.10 SEC that's paid and a new buyback program announced that our CFO will talk a little bit more about later. We can go to the next. Some of the highlights, financial highlights, continuous strong customer growth. We see 14% growth underlying year on year. Savings capital growth of 10% so once again above 1 trillion SEC in savings capital on the platform mainly due to net savings because the market is year on year it's been fairly flat. And number of trades up 18% from a growing customer base but also higher volatility due to tariff uncertainty. Revenues overall is flat year on year. We see a decline on net interest income due to lower rates but an increase in our core business trading and fund. Cost year on year is up 30% excluding Germany's .7% and again what I said is that we expect to meet the full year guidance of around 8% for the year versus last year excluding Germany. And profit level is also on high level aligned with last year. We can go to the next. We see continued good momentum in customer growth during the quarter. Net savings though is a little bit lower this quarter versus last year and it's mainly due to existing customers transfers a little bit less money this quarter and that's due to that they had we had a very high net savings in quarter one and also high dividends and also some sell-outs in April, March that then enable a lot of cash on the accounts thereby less need to transfer money from other banks during the quarter. But we see net savings picking up a little bit in July. We can go to the next. And we benefit from having four markets. The risks are business model and enables growth and we've had a good momentum growth momentum in all countries where we grow most in customers in Denmark. We see that savings capital is growing the least and that's due to a fairly big market decline in Denmark during the year due to novel Nordic. We can go to the next. Talking a little bit about the revenue streams now is starting with the trading revenue and we see in the graph to the left here the number of trading customers is increasing in line with customer growth. Up to the right they say we use trades per trading customer is about the same level as last quarter. We see a very high level in April due to trade volatility but then the markets calmed down in May and June. Still the high share of cross-border trading even though it was a little bit less than last quarter but that's from also the country mix with high share cross-border trading outside of Sweden. And trades today are at multi-year highs and each trade also tried more revenue and we see here in the graph to the left that trades per day is increasing steadily and that's due to growing customer base. We've more than doubled the customer base since 2019 from 1 million customers to more than 2 million customers but we also see that trades per customer is up a little bit in first half of this year due to high volatility from tariffs. Looking at the right graph you see that the income per trade is increasing due to a higher share of cross-border trading and is mainly due to country mix where we grow a lot outside of Sweden and it's more cross-border trading in Denmark and Finland because their local exchanges are fairly small so they trade a lot of outside their local exchange. The fund business keeps developing in a good way. We see steady growth in fund capital. We had a little bit dip in revenue in quarter two versus quarter one due to a volume effect where the markets were down quite a bit as you know and also that the sold off a little bit of the funds but we see the fund capital is now back again to the levels before we saw the downturn so hopefully in quarter three that will not have an effect. We see continued good growth rate in Nordnet branded funds which is more than one quarter of the fund capital on the platform and overall high activity in funds and more than half of the customers own funds on the platform. Looking a little bit on net interest income starting with deposits and deposit levels. A deposit versus savings capital overall is around 8% like last quarter. We see an increase in deposits from around 79 billion to 83 billion and a quarter from net savings, high dividends but then of course offset by net bias and we see non-net bias in brokerage and funds is back to more normal levels where quarter one was low. Go to next. Looking a little bit of the different components of NII starting with portfolio. We estimate to have a revenue of 1.6 billion in 2025 assuming the volumes we saw in quarter two and the currency allocation credit space and the visual code two and also the market consensus of IBRA rates going forward and of course the sensitivity here is deposit volume where we likely have an upside with growing customer base and additional net savings coming onto the platform and there's also the policies that have driven the liquidity portfolio up the last quarters and thereby generating a high-end revenue. We see interest rate past fairly stable versus last quarter a little bit down in Sweden, Norway but up in Denmark and Finland so no big movements. Looking at the loan portfolio the estimated revenue there for this year is 1.1 billion then again assuming second quarter volumes and interest rates as per 1st of July and also the IBRA rates we saw on the previous page with a pass-through rate of margin lending of 50% and mortgage 100%. Of course the sensitivity here is margin lending volume where we also here we likely have an upside if the market stabilize. If we look at margin lending volume in the graph to the left is it down in a quarter both from risk off but also from a stronger SEC since consolidated in SEC but overall our lending business is low risk we didn't see any credit losses in margin lending even though the high volatility in March-April. We also managed to maintain the margins for margin lending on a good level in spite of the central bank decreases of interest. Looking at the last component and deposit interest, so interest we pay to the customers estimate that to be around 400 million in 2025. Sensitivity here is volume on capital on savings account where we also likely have upside when the interest rate goes down there's going to be less money on the savings accounts. We saw a little bit uptick in the quarter due to high cash volume from again sell-off and high dividends but over time I think the volume on savings account will decrease a bit. So in summary we have good development in all the revenue streams both net interest income, the fund business and the trading business. Again once again over one trillion seconds savings capital on the platform. If you look at the margins is the margin on deposits of course a bit down due to lower interest rates. You see the trading margin is a bit up due to high share cross-border trading and a stable fund margin. We have a business model with great operating leverage. We've grown the revenue with 25 percent per year since 19 and while the cost is only going around 7 percent per year. So most of the top line growth ends up on the bottom line so a true position of profitable growth. We've had the high release rates both in quarter one and continue into quarter two not least for features and products for the more active customers. This quarter launched a currency account on the ISK and the capital for checking in Sweden. We also launched eight new European venues for electronic trading via our app and web and that's been well received since it's now a lot higher interest to invest in Europe versus the US. Some smaller releases we have AI summary of news with generative AI which is exciting and we also built in really nice native MoMA pension flows in the app in Norway and Denmark and also built in savings code into the app. And we also launched had a very exciting launch of a new private banking offering in Sweden and it's a tiered model based on savings capital. It's four tiers it's called platinum black and signature and for each tier we have very clearly defined benefits. So you have lower commission, you have lower mortgage rates, you have coming soon also discounts on margin lending rates, you can have an upside on interest rates on savings account, you have access to certain products specific for this segment like currency accounts on ISK and KF and also prior to our customer service and much more is to come. This is a framework that we can build on for a very long time and we have a very high release rate and a lot will happen here and we also then focus to launch this in the other countries also during the fall. And what we want to do of course is to attract more capital from the private banking segments both from existing customers to try to nudge them to the next level, the next tier so they get additional benefits but also then of course retaining capital by the nice benefits they have but also on top of that attract totally new customers to our banking offering. But it's been well received and a good start. So with that I hand over to you Lennart to talk a little bit capital liquidity and some buybacks and other things.

Thank you very much it's always a pleasure to talk about the capital and liquidity situation. It is as you know, you can go to the next slide, it is as you know a very solid and robust situation we have both capital and liquidity wise and that is also the reason why we have decided to continue the share buyback program which we last year did about 500 million shareback of ZIC for and we will continue the intention is to do the same this year but we start out with the launch of 250 on Monday going on until the 7th of November this year and then we will most probably launch another tranche of this one but the intention is as I said to go for 500 continue the same way we did last year. We also have a strong capital situation that will enable us to do the 70% dividend continuously as well so very nice figures to talk about but I don't have very much to say more to say about it really. It shows itself. Thank you.