Latest news with #NordnetAB
Yahoo
21-07-2025
- Business
- Yahoo
Nordnet AB (publ) (FRA:9JL) Q2 2025 Earnings Call Highlights: Strong Customer Growth Amidst ...
Revenue: Flat year on year. Net Interest Income: Decline due to lower interest rates, partially offset by higher deposits. Operating Expenses (OpEx): Up 9.7% excluding Germany, with full-year guidance of around 8% cost growth excluding Germany. Customer Growth: 14% year-on-year increase. Savings Capital: Growth of 10%, now above SEK 1 trillion. Number of Trades: Up 18% due to a growing customer base and higher volatility. Dividend: SEK 8.10 paid. Share Buyback Program: New program announced, starting with SEK 250 million, with an intention to reach SEK 500 million. Fund Business: Steady growth in fund capital, with a dip in Q2 revenue due to market downturn. Deposits: Increased from SEK 79 billion to SEK 83 billion. Liquidity Portfolio Revenue Estimate: SEK 1.6 billion for 2025. Loan Portfolio Revenue Estimate: SEK 1.1 billion for 2025. Deposit Interest Expense Estimate: SEK 400 million for 2025. Customer Base: More than doubled since 2019, from 1 million to over 2 million customers. Warning! GuruFocus has detected 3 Warning Signs with OSTO:SEDANA. Release Date: July 18, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Nordnet AB (publ) (FRA:9JL) reported stable financial performance with revenue and profit in line with the previous year. The company experienced strong customer growth, with a 14% increase year-on-year, and savings capital growth of 10%, surpassing SEK 1 trillion. Nordnet AB (publ) launched eight new trading venues in Europe and introduced a new private banking tiering in Sweden, which has been well received. The company announced a new share buyback program and maintained a strong capital situation, enabling a 70% dividend payout. Nordnet AB (publ) has shown good scalability and cost control, with revenue growing at 25% per year since 2019, while costs have only increased by 7% annually. Negative Points Net interest income declined due to low interest rate levels, although partially offset by higher deposits. Operating expenses, excluding Germany, increased by 9.7% due to marketing spend, with an expected full-year cost growth of around 8%. Net savings were lower this quarter compared to the previous year, attributed to existing customers transferring less money. The company faced a decline in trading revenue due to lower trading volumes and a decrease in cross-border trading. Fund revenue dipped in Q2 compared to Q1 due to market downturns and customer sell-offs, although fund capital levels have since recovered. Q & A Highlights Q: Can you elaborate on the impact of the new private banking tiering on revenue and customer acquisition? A: Lars-Ake Norling, CEO, explained that while the new private banking tiering might slightly impact revenues, it is expected to drive significant customer interest and acquisition. The tiering offers clear benefits at each level, encouraging existing customers to increase their capital to access better rates and attracting new customers with its transparent and low-cost structure. Q: How do you view the competitive landscape for private banking in Sweden and other markets? A: Lars-Ake Norling, CEO, stated that Nordnet aims to attract customers from other platforms and banks by offering a modern, digital, and transparent private banking service with clearly defined tiers and benefits. The competitive situation is most intense in Sweden, but the framework is expected to perform well across all markets. Q: What factors contributed to the strong net interest income (NII) performance, and do you foresee any changes? A: Lars-Ake Norling, CEO, attributed the strong NII performance to higher deposit volumes, which increased the liquidity portfolio and revenues. While there is potential to take on more risk for higher returns, the main driver remains deposit levels. Q: Can you discuss the dynamics behind Norway's performance and Denmark's decline in the recent quarter? A: Lars-Ake Norling, CEO, noted that Norway's performance benefited from its unique market dynamics, including industries like oil and fish, which differ from other countries. Denmark's decline was influenced by a poor market sentiment due to Novo Nordisk's performance, impacting trading activity. Q: What is Nordnet's strategy for entering the German market, and how does it differ from past attempts? A: Lars-Ake Norling, CEO, explained that the German market is now more mature, and Nordnet is better positioned with a strong base in the Nordics. The focus is on leveraging profitable growth and a mature market to succeed in Germany, unlike the previous attempt when Nordnet was not ready to scale. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
12-02-2025
- Business
- Bloomberg
Nordnet's Breakdown in Trading Safeguards Taken Seriously by FSA
Swedish digital bank Nordnet AB has confirmed that a client who gained access to another customer's account on Tuesday was able to initiate an equities trade. 'In the cases where users were shown the incorrect account information, it was possible for them to act on it,' Nordnet Head of Communications Johan Tidestad said by phone. 'We have found one documented case where an equity order was initiated by an unauthorized person.'
