Nordnet (SAVE) Q3 2024 earnings summary

Executive summary

• Achieved highest customer growth in seven years, surpassing two million customers in August, with a 12% year-over-year increase and strong growth across all Nordic markets.

• Strong quarter with continued growth in core brokerage and fund business, supported by healthy trading activity and robust brokerage margins; Nordnet-branded funds grew 65% year-over-year.

• Significant progress in fund-focused strategy, with fund capital up 42% year-over-year and net savings up 50% compared to Q3 2023.

• Product innovation continued, including new app features, Shareville integration, and advanced trading tools.

• SEK 500 million share buyback program launched, with cost growth aligned to full-year guidance.

Financial highlights

• Revenues and operating income increased 6% year-over-year, with Q3 2024 operating income at SEK 1,226m and profit before tax at SEK 852m.

• Net profit after tax for Q3 2024 was SEK 697m, up 6% year-over-year; earnings per share after dilution rose 8% to SEK 2.70.

• Savings capital rose 26% year-over-year, surpassing SEK 1,000 billion on the platform.

• Number of trades up 13% year-over-year to 12.9 million; net savings for the quarter at SEK 16.3 billion.

• Net interest income declined 7% year-over-year due to lower rates, while transaction-related income grew 29%.

Outlook and guidance

• Stable net interest income outlook for 2024 at SEK 2.6 billion, with cost growth expected to align with guidance, excluding extra marketing costs.

• NII for 2025 projected at SEK 1.9 billion if volumes remain flat, with consensus expecting SEK 2.2 billion.

• Medium-term targets include 10–15% annual customer growth and average savings capital per customer around SEK 420k.

• Dividend payout ratio targeted at 70%; leverage and CET1 ratios to remain above regulatory requirements.

• Continued investment in marketing and product launches, including new pension products and advanced trading features.