Nordnet's report presentation, January-September 2015

January – September 2015Presentation, 20 October

Financial overview

July – September 2015

• Revenue increased by 13 percent to SEK 293.8 million (260.9)

• Profit after tax increased by 26 percent to SEK 75.7 million (60.1)

• Earnings per share were up by 26 percent to SEK 0.43 (0.34)

January – September 2015

• Revenue increased by 15 percent to SEK 923.8 million (801.3)

• Profit after tax increased by 37 percent to SEK 269.6 million (196.6)

• Earnings per share were up by 37 percent to SEK 1.55 (1.12)

Highlights from Q3 2015

• Eventful period in the stock market with a high transaction level

• The most satisfied savers in the Danish and Finnish markets

• +50,000 customers in Denmark

Customers and accounts

Accounts/Customer Q3 2015: 1.28 (1.25)

Customers 12M: +55,000 / 13%

Accounts 12M: +79,300 / 15%

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Customers Accounts

Net savings and savings capital (SEK billion)

In relation to savings capital at the end of September 2014, net savings for the past 12 months correspond to 10 percent.

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

0

50

100

150

200

250

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Ne

t sa

vin

gs

Sa

vin

gs

ca

pita

l

Net savings Savings capital

Trades (thousands)

12M: 18,159

3 677

4 134

3 216 3 230

4 062

4 907

4 392

4 799

0

1 000

2 000

3 000

4 000

5 000

6 000

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Lending (SEK billion)

3,3 3,5 3,3 3,5 3,33,8 3,8 4,1

2,12,2 2,3

2,32,3

2,3 2,42,5

0

1

2

3

4

5

6

7

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Margin lending Personal loans

124 120 123 121 114 111 106 101

111 127 108 110 134167

145 148

2934

28 3037

52

49 45

0

50

100

150

200

250

300

350

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Net interest income Net commission income Other income

Revenue development (SEK million)

12M: SEK 1,208 million

294

Cost development (SEK million incl. credit losses)

12M: SEK 777 million

180186 188 186 189 194 199 196

0

50

100

150

200

250

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Operating profit (SEK million)

12M: SEK 431 million

84

95

71 75

96

136

101 98

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

20

40

60

80

100

120

140

160

Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15 Q2 15 Q3 15

Operating profit Operating margin

Nordnet in the Nordics (Jan-Sep 2015)

Savings capital (SEK billion)

Revenue (SEK million) Operating profit (SEK million)

Customers

NO, DK, FI

share of

total 47%

NO, DK, FI

share of

total 51%

NO, DK, FI

share of

total 38%

NO, DK, FI

share of

total 44%

98

18

31

39

SE

NO

DK

FI

234 000

68 600

50 500

122 900 SE

NO

DK

FI

207,8

22,4

66,5

38,7

SE

NO

DK

FI515,4

113,8

150,7

144,0

SE

NO

DK

FI

Income statement (SEK million)

3 months 3 months 9 months 9 months 12 m rolling 12 months

Consolidated Income Statement (SEK million) Jul-Sep 2015 Jul-Sep 2014 Jan-Sep 2015 Jan-Sep 2014 Aug-Sep 2015 Jan-Dec 2014

Net interest income 101.2 120.7 317.9 364.4 432.2 478.6

Net commission income 147.9 109.9 459.9 344.5 593.6 478.2

Other income 44.7 30.3 145.9 92.4 182.5 129.1

Total operating income 293.8 260.9 923.8 801.3 1,208.3 1,085.8

General administrative expenses -159.5 -145.7 -466.7 -439.0 -618.14 -590.7

Depeciation and amortization -20.1 -19.8 -59.4 -55.7 -74.7 -71.0

Other operating expenses -8.2 -10.0 -30.7 -32.7 -42.0 -44.1

Total operating expenses -187.9 -175.5 -556.8 -527.4 -735.1 -705.8

Profit before credit losses 105.9 85.4 367.0 273.9 437.2 380.1

Net credit losses -8.0 -10.1 -31.6 -32.5 -42.1 -43.1

Operating profit 97.9 75.3 335.4 241.4 431.1 337.0

Tax on profit for the period -22.1 -15.1 -65.8 -44.8 -81.3 -60.3

Profit for the period 75.7 60.1 269.6 196.6 349.8 276.6

Earnings per share before dilution 0.43 0.34 1.55 1.12 2.00 1.58

Balance sheet (SEK million)Consolidated Balance Sheet (SEK million) 30/09/2015 30/09/2014 31/12/2014

Assets

Loans to credit institutions 538.0 929.6 987.5

Loans to the general public 7,255.6 6,220.5 5,785.6

Financial assets at fair value 13.0 62.5 8.7

Financial assets avalibale for sale 14,448.5 10,992.4 12,094.6

Financial assets held to maturity 3,381.7 - -

Financial assets - policy holders bearing the risk 33,965.1 28,339.0 28,868.5

Tangible and intangible assets 434.1 470.2 466.5

Current tax assets 77.8 46.4 -

Other assets 3,124.4 2,795.1 1,770.3

Prepaid expenses and accrued income 160.8 207.7 144.7

Total assets 63,399.1 50,063.6 50,126.5

Liabilities

Deposits and borrowing by the public 20,113.3 14,901.2 16,500.3

Liabilit ies to policyholders 33,966.1 28,339.8 28,869.3

Other liabilit ies 7,499.6 5,142.6 3,005.7

Total liabilities 61,579.0 48,383.6 48,375.3

Equity

Share capital 175.0 175.0 175.0

Other capital contributions 471.3 471.3 471.8

Other provisions -88.3 -54.3 -64.8

Accrued profit including profit for the period 1,258.1 1,084.1 1,165.5

Total shareholders' equity attributable to shareholders of the Parent Company 1,816.2 1,676.0 1,747.6

Non-controlling interest 3.9 3.9 3.5

Total equity 1,820.1 1,680.0 1,751.1

Total liabilities and equity 63,399.1 50,063.6 50,126.5

Capital requirement (SEK million)

Capital requirements for the financial conglomerate (SEK million) 30/09/2015 30/09/2014 31/12/2014

Total equity, Group 1,820.1 1680 1,751.1

Less, profit that have not been subject to audit - -196.6 -

Subordinated liablities - 140.6 140.6

Requirements for prudent valuation -14.5 - -12.1

Less expected div idend for current year -162.4 - -175.0

Less intangible fixed assets and deferred tax receivables -405.6 -437.5 -434.3

Capital base 1,237.7 1,186.5 1,270.3

Risk exposures

Exposure credit risk 5,414.3 5,113.3 5,650.2

Exposure market risk 14.6 38.6 18.1

Exposure operational risk 1,676.9 1,888.6 1,888.6

Exposure other risks 427.4 417.3 402.7

Total exposure 7,533.1 7,457.8 7,959.6

Capital ratio 16.4% 15.9% 16.0%

Next at Nordnet

• Continue to execute on our growth

strategy

• Focus on enhanced user experience

• Continue to market and product develop

around lending products

Contact us

More information: nordnetab.com

Become a customer: nordnet.se/no/dk/fi

Social network investing: shareville.se/no/dk/fi

Follow: nordnetbloggen.se / Twitter @CEONordnet