In This Article:
Release Date: April 24, 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) (STU:9JL) reported record revenue and profit levels in Q1 2025, driven by strong growth in its core fund and brokerage business.
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The company experienced the highest customer growth in savings in four years, indicating strong market demand.
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Nordnet AB (publ) (STU:9JL) successfully launched new features for high-end traders, enhancing its service offerings.
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The Danish pension product launch led to record net savings and pensions in Denmark, significantly outperforming the previous year.
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The company concluded its first buyback program of 500 million and applied for another, demonstrating strong capital management.
Negative Points
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Market turbulence has led to a slowdown in net buying, particularly in March, with large outflows from funds.
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A reduction in savings capital was noted due to a stronger currency and negative market performance.
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Operating expenses increased by 15% year-over-year, with a significant portion attributed to marketing spend.
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There was a slowdown in mortgage lending volumes, partly due to currency consolidation impacts.
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The company experienced a platform outage in mid-February, though no feedback from authorities has been received yet.
Q & A Highlights
Q: Historically, what happens with the dividends your clients receive? Are they usually reinvested in the following quarter? A: Typically, dividends are reinvested. However, due to higher uncertainty this quarter, there might be less reinvestment. We'll have to see how the next quarter plays out. CEO
Q: With forward margins coming down since Q4, and assuming clients reinvest dividends, would you need to decrease your full-year NII guidance in Q2? A: No, the deposits are also a function of net savings, which continue on a good basis. We use the latest forward rates for our guidance, which were updated recently. CFO
Q: Can you explain the significant improvement in net savings in Sweden, given that customer growth there seems flat? A: The improvement is due to both retail and private banking inflows, with some extra boost from larger private banking customers. CEO
Q: Given your healthy leverage ratio, is there potential to accelerate buybacks? A: We are overcapitalized but plan to maintain our leverage ratio target by the end of 2026. We aim to manage deposits over time without disturbing the stock market with buybacks. CFO
Q: Do you expect the launch of FX accounts to impact currency revenues? A: We don't expect a significant decrease in currency revenues. The FX accounts might attract customers who currently don't trade foreign shares with us. CEO