Profit after tax for the second quarter of 2018 amounted to SEK 79 million, down 11% from the same period last year when the result was SEK 89 million. .
Operating expenses increased 17% to SEK 153 million in the second quarter. The increase in costs is a consequence of the increased development capacity for continued growth, where a larger than expected portion was implemented in the spring. The rise in costs in the second quarter was as expected, writes the bank in the report.
The cost increase for 2018 will reach nearly 11% compared to the previous estimate of 8-10%. The decision was made to recruit 20 new employees in innovation and development this fall, in order to further increase the capacity of the development team.
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In the first half of 2018, operating income amounted to SEK 515 million, compared with SEK 478 million in the first half of 2018. first half of 2017, an increase of 8 percent. At the same time, operating costs increased by 20% compared to the same period last year and amounted to SEK 305 million.
After-tax profit for the first half decreased by 5% to SEK 183 million, compared to SEK 192 million in the first half of the year
The core capital ratio is 15.6% at the end of 2018, compared with 15 , 7% a year earlier.
"I would like to summarize the second quarter as disappointing, as reflected in the result.The net intake is not at the level we want to see.It is a model that we recognize in this kind of market Our existing customers are waiting to make deposits before they know where to invest their capital.Sales and the number of transactions among our customers were well below those of the previous quarter, and sales were also lower than those of the previous quarter. second quarter of the previous fiscal year.At all, a pending market, which is seen in the courthouse, which declined 25 percent during the quarter.The market situation and the sad quarter, despite the growth in customer service, totaled 23,300 new customers, we also see that fund fees continue to increase, which increased by 3% compared to the first quarter, butrose 22% from the second quarter of last year. We also find that the proportion of fund clients is increasing among our new clients. It's important for Avanza and, consistent with our strategy of generating revenue that is less volatile than trading revenue, "writes Rikard Josefson in his comment of the CEO on the report and continues:"
"The increase in First Half Costs With the first half of 2017, we achieved the cost reduction targets we set at 8-10% for 2018. However, I worked at Avanza for more than half and I launched in the business in depth. My analysis is that the rate of change in the rest of the world is increasing rapidly, while at the same time we are investing considerable resources in the industry to develop and manage the regulatory requirements. Given the development effort in 2017, Avanza has a good capacity, but in order to accelerate the pace and meet our ambitions, we decided to hire new recruitments from the start. employees dedicated to our innovation and development teams. These recruitments will begin immediately after the summer and will likely result in increased costs for the year, compared to 2017, rather than landing at close to 11%, depending on how quickly our new employees are hired. will be in place. I am absolutely convinced that it is the right decision for Avanza in the long run. We do not communicate the contracts we work with before they are launched, but I am confident that we will be able to provide what we need to support our customers and the development of Avanzas in the future, even in the form of an internal rationalization. Already in the fall, we have exciting launches. Our long term plan for annual cost increase is in the range of 8 to 10%. Low costs are an important part of our business model. "
