Nordnet (SAVE) Q2 2024 earnings summary

Executive summary

• Achieved all-time high revenue and profit in Q2 2024, with 20% revenue growth and 24% profit growth to SEK 904 million, driven by strong performance in trading, fund businesses, and net interest income.

• Customer base grew 11% year-over-year to nearly 2 million, with net savings of SEK 18.9 billion in the quarter and savings capital reaching SEK 963 billion, up 21%.

• Trading activity and brokerage margins remained strong, with a 17% increase in number of trades and cross-border trades making up nearly 30% of total trades.

• Dividend of SEK 7.20 per share paid and share buyback program ongoing, reflecting strong capital position.

• Integration of Shareville's social functions into the main platform led to record engagement and increased activity.

Financial highlights

• Revenue reached a record SEK 1.3 billion, up 20% year-over-year, with especially strong growth in fund and trading segments.

• Operating profit grew 24% to SEK 904 million, marking an all-time high; net profit after tax was SEK 737 million, up 24%.

• Net savings for the quarter reached SEK 18.9 billion, up 170% year-over-year; savings capital at SEK 963 billion.

• Fund capital grew to SEK 229 billion, with Nordnet-branded funds growing by 60%.

• Adjusted operating expenses increased 10% year-over-year to SEK 353 million; cost growth expected to be mid-single digit for the full year.

Outlook and guidance

• Net interest income outlook remains stable, with deposit and lending volumes slightly higher than last quarter.

• Cost growth for the second half expected to be lower due to ongoing savings initiatives; full-year expenses expected to align with financial targets.

• Medium-term targets include 10–15% annual customer growth, income per customer around SEK 420k, and a dividend payout ratio of 70%.

• Anticipates further product launches, including Livrente pension in Denmark and new B2B2C digital portal.

• Buyback process is ongoing, with plans to repurchase about 1% of shares over the next nine months, pending regulatory approval.