In This Article:
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Revenue: Record revenues for the quarter at SEK1.3 billion.
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Net Income: Record profit of SEK900 million for the quarter.
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Customer Growth: 40% year-on-year increase.
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Savings Capital: Increased by 25%, surpassing SEK1 trillion on the platform.
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Trades: Up 14% from a growing customer base and positive markets.
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Operating Expenses: 7.7% for the year, excluding Germany investment at 6.8%.
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Dividend: Proposed dividend of SEK8.10, up from SEK7.2 last year.
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Full Year Revenue Growth: Up 12% year-on-year.
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Net Savings: Doubled to SEK73 billion from SEK35 billion in 2023.
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Capital and Liquidity: Leverage ratio of 6.0% and total capital ratio of 24.3%.
Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Nordnet AB (publ) (FRA:9JL) achieved record revenue and profit levels for both the quarter and the full year.
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The company experienced the highest customer growth and net savings in three years, with a 40% year-on-year increase in customer growth.
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Successful launch of the Danish livrente pension product, contributing to strong growth in the core business.
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Plans to expand into the German market by H2 2026, aiming to leverage a large and growing savings market.
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Proposed dividend increase to SEK8.10, up from SEK7.2 last year, reflecting strong financial performance.
Negative Points
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Net interest income declined due to lower interest rates and the sale of the personal loans portfolio.
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Operating expenses, including marketing, grew by 7%, with underlying growth at 6.8%, slightly above guidance.
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The company faces challenges in the German market, including complex brokerage pricing and less developed digital infrastructure.
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The breakeven timeline for the German expansion is set for 2029, which may be seen as a long-term investment with delayed returns.
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Increased marketing spend is required to achieve higher customer growth targets, impacting short-term profitability.
Q & A Highlights
Q: What competitive edge does Nordnet foresee in Germany compared to incumbents like flatexDEGIRO? A: Lars-ke Norling, CEO, highlighted Nordnet's strengths in product breadth, user experience (UX), and transparent pricing. He noted that while incumbent banks may have a good product offering, they often lack in UX and pricing. Digital platforms might have good UX but are complex in pricing and lack product breadth.
Q: Why did Nordnet choose Germany over other countries like the Netherlands for expansion? A: Lars-ke Norling explained that Germany offers a large and growing savings market with a long growth runway. The digital maturity is increasing, and the market is less mature than the Nordics, providing significant potential for growth.