Avanza Bank (AZA) investor relations material

Strategic positioning and customer focus

• Holds 8.3% market share of the Swedish savings market with SEK 1,133 bn in savings capital as of April 2026.

• No. 1 in customer satisfaction for 16 consecutive years, with a diversified base of over 2.3 million customers.

• Broad product offering includes mutual funds, equities, savings accounts, mortgages, and decision-making tools.

• Focuses on a capital-light, fee-based business model with high scalability and low risk.

• Strong brand loyalty, with churn at just 0.9% and daily active users exceeding 450,000.

Financial performance and business model

• Operating income for Q1 2026 was SEK 1,257m, with an operating margin of 64% and ROE of 36%.

• Income is well-diversified: 33% net interest, 28% brokerage, 17% fund commissions, 16% currency-related, and 6% other.

• Cost control is emphasized, with 59% of costs related to personnel and a philosophy to expense technology investments.

• Maintains a high operating margin (64–71%) and low credit losses (<0.02% annually since 2001).

• Balance sheet is capital-efficient, with SEK 113.8 bn in deposits and a CET1 ratio of 19.5%.

Growth potential and market dynamics

• Significant growth potential in both existing and new customers, especially among younger demographics.

• Market penetration is highest among ages 20–39, with 37–41% penetration in these groups.

• Average savings capital increases with customer age and tenure.

• Positioned as one of the fastest-growing pension companies, active in the SEK 1,011 bn occupational pension market.

• Digitalisation and regulatory changes are expected to further reduce friction and increase customer mobility.