Good morning, everyone, and welcome to the presentation of Avanza's Q3 report. My name is, as said, Gustaf Unger, I'm the CEO of Avanza, and with me in the room in Stockholm today, I have CFO, Jonas Svärling, and Karolina Johansson heading Investor Relations.

Q3 was another strong quarter, both operationally and financially, reporting our second-highest operating profit ever. It is also gratifying to see that Avanza continues to grow at a strong pace, adding 53,000 new customers in the quarter and a net inflow of 23 billion.

Customers are continuing to invest, and once again, we're noting new record inflows to fund this quarter of 18 billion. The Swedish fund market is also reporting strong net inflows, and a fair share of that, 32%, is driven by Avanza customers.

We have entered the autumn with great momentum across the organization, and I'm very pleased that we, on August 31st, broadly launched Avanza Sigma to the full PB and Pro segment with great success, having reached 710 million in only a month after the broad launch. As part of the continuous effort to enhance the offering for customers with a strong interest in equities, pre- and post-market trading in the US market was launched, enabling customers to act on corporate reports, macroeconomic data, and other market events outside regular exchange trading hours.

Last but not least, I'm very glad that we have recruited Christian Gillesen as our country manager for Avanza Denmark, and that he assumed his position this Monday. Christian brings valuable experience from the Danish savings market and from building and scaling customer offerings from scratch.

He has a strong commercial drive and entrepreneurial mindset and shares our passion for challenging the market and creating customer value, which makes me convinced he is the right person to lead our venture. Despite ongoing global uncertainty, we are seeing signs of a better and brighter macro environment in Sweden where GDP growth slowly but surely has gained speed.

This is also evident in the savings market statistics. Last year, a disproportionally large share of net savings was parked in deposits with the incumbent banks, but now we're finally seeing an increase in capital directed towards stock market investments.

This points to stronger confidence in the financial market among Swedes, something that is also reflected in our growth figures. During the quarter, we welcomed as many as 53,000 new customers, and the quarterly net inflow increased to 23 billion.

Avanza stands well-positioned to capture a fair share of the savings market growth. At the same time, I remain mindful of the uncertainties that remain in the world around us, where geopolitical tensions are affecting global markets, and the probability for rate hikes in the near future has increased.

However, I also stand positive that the economic pick-up that is finally a fact in Sweden will not be slowed by a possible increase of the policy rate. We know from experience that our customers are good at adapting to current macroeconomic conditions and at prioritizing savings.

At Avanza, our focus on supporting our customers to good savings and investments remains unchanged. The improved sentiment is also reflected in the risk appetite among our customers.

We see clear signs of higher willingness to invest in the stock market, not only in the market statistics and by our growth figures, but also in the behavior of our customers. As mentioned before, the net inflow to mutual funds reached yet another record level this quarter at 18 billion, and our share of the mutual fund market inflow was 32%.

The net investing is also reflected by the share of deposits of the total savings capital that continues to decrease. We have also during the quarter seen margin lending volumes steadily increasing.

Although customers have a willingness to invest, the trading intensity is, as usual, closely connected to volatility and stock market development. Volatility decreased during the summer, and naturally so did the trading activity.

Had 7.5 more trading days in the quarter, this did not fully offset the effect from the lower daily turnover volumes. In a market environment with lower volatility and quite a few red days on the stock market, it's not uncommon that the broader customer base can become a bit more cautious, while our most initiated customers continue to trade.

This happened also in Q3, and we saw the number of brokerage-generating customers decrease. Private Banking and Pro customers generated 30% of the brokerage income, an increase from 26% in Q2, which pressured our income margin, both in terms of brokerage income and FX income.

As briefly mentioned, on August 31st, we launched Avanza Sigma broadly to all our Private Banking customers, thereby making tailored, algorithm-driven equity management available at half the cost compared to traditional alternatives on the market. As I've mentioned many times before, I'm very excited about this product and confident that we have created something unique in the market where customers are able to tailor a bespoke stock portfolio based on their preferences, and where they are even able to exclude certain single stocks if they would like to.

Once they have their portfolio in place, they are able to track both the aggregated portfolio performance and can also view their portfolio in detail and follow the performance of the underlying single stocks. I'm very happy with the reception where the capital in Avanza Sigma, at the end of the quarter, just 1 month after the broad launch, amounted to 710 million.

We now maintain full focus on continuing to challenge the traditional discretionary portfolio management market with our new, unique, and digital solution, a market estimated at 1 trillion Swedish. The high level of employee engagement at Avanza is a unique strength that lays the foundation for our strong customer satisfaction and our innovative corporate culture.

In September, we held an internal culture week at Avanza, where we launched updated guiding principles for the organization: customer first always, better for real, and smarter together. The week included everything from external lectures to internal daily challenges and a live interview with our chairman and founder, Sven.

My main takeaway from the week is that our strong culture is not static, but rather one of our absolute most important assets that we must continuously and consciously develop. It is through our culture and our guiding principles that we constantly create new and good solutions for our customers and help them towards better savings.

This, in turn, is what creates shareholder value. With that, I will hand over to you, Jonas, to dig deeper into the financials.

Thanks, Gustaf, and good morning, all. As you said, we are concluding yet another strong quarter.

We are still seeing a healthy income mix. However, our income did decrease slightly compared to Q2.

The lower volatility in the market during the summer affected our trading-related income streams negatively, while deposits also decreased, which pressured NII. However, we have seasonally low staff costs in Q3, meaning that costs were also lower, and all in all, our operating profit came in at 920 million, which is the second highest quarterly operating profit in the history of Avanza.

This resulted in an EPS of 4.9 and ROE was at 44% for the quarter, again, well exceeding our target of at least 35%. If we move further into the income side, and as mentioned before, market volatility has decreased during the summer, and as a natural consequence, daily trading activity also slowed.

This was partly, but not fully, offset by 7.5 more trading days compared to Q2, and our trading-related income decreased as a consequence of the lower brokerage-generating turnover and trades. Additionally, the market environment in Q3 resulted in our Private Banking and Pro segments accounting for a larger share of the trading.

As Gustaf said, this is in line with what we've seen before with lower market volatility and negative stock market development. In such times, the broader customer base can become a bit more cautious, while our most initiated customers continue to trade.

Private Banking and Pro customers generated 30% of the brokerage in Q3, which is an increase from 26% in Q2. At the same time, we saw a higher turnover per trade, especially in the fixed fee class, and this resulted in a lower income per turnover krona and our brokerage margin decreased to 10.3 basis points from 11.0 last quarter.

The strong interest in foreign trading held up also in Q3, and the share of foreign turnover was stable at 31%. This meant that it did not have a positive effect on the brokerage margin this quarter.

However, strong foreign trading is always positive for the overall income mix, where FX income is growing as a share. If we look back and compare to only 3 years ago, the share of foreign trade is more than twice as high today.

Although that share of foreign trading was stable this quarter, the overall trend has for many years been a steadily increasing share of foreign trading, in line with Swedes reducing home bias in investments, and we expect that to continue. However, in the quarter, FX income was also affected by the trading mix with a higher share of also the foreign turnover generated by the Private Banking and Pro segments.

Pro customers have lower FX fees in general, and Private Banking customers as well through the FX account, meaning that the FX margin is also negatively affected when these customers account for a larger share of trading. Looking at fund commissions, these increased by 8% in the quarter driven by higher fund volumes.

Although trading intensity is very much connected to volatility and market sentiment, etc., customers' willingness to invest has clearly increased, and we're once again reporting a quarterly record inflow to funds and with, as Gustaf said, a market share of 32% of inflows. Share of index funds continue to increase by 1.7 percentage points to 55.5 at quarter-end.

This impacted the fund margin, which was at 22.2 basis points on average and 22.0 at quarter-end. Hence, the effect of higher volumes continues to outweigh the lower income per fund krona resulting from a higher share of index funds.

Other income increased, primarily as a result of higher income from Avanza Markets. Other commission income also increased, which was both a result from higher income from stock lending as well as several other smaller income lines that are a bit too small to disclose separately.

Corporate finance should be noted, income is also seasonally low in Q3. If we look into more details of NII then, deposit volumes decreased compared to Q2, which resulted in a slight decrease in interest income for the first time in a year.

Income from surplus liquidity decreased to 499 million as a result of lower volume. At the same time, we increased lending volumes, both when it comes to margin lending and mortgages, and all interest rates, should be said, both on deposit and lending side been kept stable during the quarter, but just like in Q2, the average rate for both deposit and lending did change slightly due to the mix effects in the lending and deposit volumes respectively.

Average interest rate for deposits increased to 0.81% due to higher average deposit volumes on the savings accounts. This had a slight effect on the deposit expenses, which increased by 2 million.

The average interest rate for lending decreased to 2.68% from 2.70%, both as a result of volume mix changes within the different margin lending rate levels, but also because of the mortgage portfolio growing at a faster pace than margin lending. Our mortgage offering is highly attractive, and as we have seen fantastic growth.

Compared to a year ago, the mortgage portfolio is today 44% larger. To manage the extremely high demand and as we're still keen to not allow our mortgage to deposit ratio to grow significantly, we have now in October temporarily paused new mortgage applications for customers with a savings capital between 3 and 10 million Swedish krona, and we're also increasing the interest rate within this segment by 10 basis points as of the 1st of November.

As always, NII development going forward will reflect the market rate environment. Geopolitical tensions are affecting global markets, and the Riksbank confirmed in September that the probability of near-term rate hikes has increased.

This would have a positive effect on our net interest margin, while we hope at the same time that a slightly higher interest rate environment will not slow the economic pick-up that has been long-awaited and is finally a fact in Sweden. We know from experience that our customers are quite good at prioritizing savings, and we will of course continue to do everything we can to support them in that.

When it comes to interest rates and changes going forward, our strategy remains the same: we will continue to make decisions in relation to each policy rate decision, giving us the flexibility to take customer behavior as well as competition into account when adjusting rates. Moving over to costs, our operating expenses decreased by 11% compared to Q2 as a result of our seasonally lower personnel costs connected to summer vacations.

Marketing costs increased, as we typically do more marketing in early autumn. Depreciation, amortization increased slightly as a result of an algorithm asset included in the acquisition of Sigmastocks now being amortized in connection with the launch of Avanza Sigma.

This asset is amortized on a straight-line basis, which means that just under 2 million krona per quarter will be expensed up until and including August 2031. Our full-year guidance of 9% cost increase for the Swedish business remains.

Our long-term target is an average annual cost increase of 8% for Sweden from '25 to 2030, and as previously communicated, 2025 and '26 have been investment years in which we have expanded our headcount to make strong progress within our prioritized areas. In the coming years, we will not need to increase the number of employees to the same extent.

When it comes to international expansion, 11 million of the quarter's costs were linked to this. Our expectation when announcing the Denmark expansion in April was that the '26 cost base was going to be affected by 50 million Swedish krona.

We have managed to be more cost-effective than expected. This is mainly because we've been able to resolve more with our own strong internal expertise without having to bring in external support to the extent we initially anticipated.

Therefore, we are now lowering our '26 guidance regarding Denmark to 40 million Swedish krona. For the project as a whole, however, we remain humble that much can happen up until launch in the second half of 2027.

We therefore choose to retain our overall estimate for the entire startup period of 120 to 150 million, of which around 20% will be capitalized on the balance sheet. Moving over to capital, as you can see, our capital position remains solid, and we have also audited the Q3 figures, further strengthening the capital base, since accumulated profit is included in the capital base.

With current capitalization, deposits on our balance sheet would be able to grow by 46 billion without breaching the leverage ratio requirements. The non-risk-based leverage ratio requirement remains our main capital constraint, and at the end of the period, it was at 4.8%.

All in all, as you can see, we are well-positioned, both when it comes to the risk-based and the non-risk-based requirements. With that, I hand back to you, Gustaf, for concluding remarks.

Thank you, Jonas. To sum up, I'm very pleased to conclude another strong quarter, both financially, reporting our second-best operating profit ever, and operationally, where we have entered the autumn with great momentum across the organization.

The Swedish economy has strengthened, and we're seeing strong growth figures this quarter. The broad launch of Avanza Sigma was highly successful with 710 million in AUM just 1 month after the broad launch, and we maintain fully focused to challenge the large traditional market for discretionary portfolio management.

In parallel to the Swedish business, preparations for our international expansion is moving forward according to plan, and I'm very pleased to have recruited Christian Gillesen as our country head. Avanza stands strong and is well-positioned to capture future savings market growth.

With that, I think we open up for questions.

Hello and good morning. Can you hear me?

Yes.

Excellent. First, I just wanted to ask on margin compression on brokerage due to customer segments Private Banking and Pro.

Can you share some more clarity around the dynamics at play there? Is this partially also effect of your strategic push into Private Banking that we're seeing lower margins today?

Do you think this will continue in that case? Or is it just these relatively larger customers or more initiated as I believe you called them earlier, just behaving slightly differently in this type of market compared to your broader mass-market customers?

The mass-market customers then lacking volume discounts, etc.?

I would not extrapolate that into the future in the sense that the investments in the prioritized areas that would mean a significant shift in terms of which part of the customer base is active. There will always be a variation around sort of some kind of baseline, which in this quarter was affected by the overall market sentiment, the lower volatility, and a few more negative days.

It's more I would say, temporarily related to how the market developed this quarter.

Understood. Then secondly, I'd like to ask about the temporary closing of the mortgage offering for customers with 3 to 10 million in assets, and also that you're making this specific segment more expensive for existing customers.

I just wanted to hear a bit more about the reasons behind this. Is it just the fact that savings capital growth has been strong, and this makes an unexpectedly large portion of your customers now eligible for a mortgage?

At the same time, you're seeing a trend for decreasing deposits? I guess the underlying question is: are we seeing early measures from you to avoid a potential liquidity crunch further down the line if savings capital compresses?

What we have seen is that our offering is maybe too attractive. What determines that?

It determines the big players' funding costs and what margins they want. We have seen a very strong inflow to the product.

It is due to pricing. It is also due to marketing.

When we have marketed to build up brand awareness around Private Banking, we have lifted up the mortgage in several of those marketing efforts. We feel that it's prudent to slow down the growth now.

We have grown the mortgage book by 44%. It's easy to do the math.

It doesn't matter how fast we grow the savings capital, we need to grow it at extreme speed to be able to motivate such a growth in the mortgage book over time. We're making it, it's still very attractive, but we're making it slightly less attractive with a 10 basis point change, is something that we need to do, and the other one is that we're pausing the opening for the smaller Private Banking segment for now.

Understood. Just to stay with that one a little bit more, one way of seeing this is that you're taking precautions to shore up the liability side of the balance sheet in case of a larger market downturn, right?

Which is what I find interesting. It's also, you say, part of the reason is just that your mortgage offering is too attractive, basically.

On your first, that's not the reason. I feel super comfortable with our balance sheet.

When we look into the future, it's just the math doesn't equalize when we grow with 44% on the liability side, and our goal is to grow with 15%, and deposits should over time, with fluctuations, grow with 15%, so.

Maybe we should add that our appetite for liquidity risk and appetite for credit risk is very, very low. In terms of credit risk, loan-to-value is less than 50%.

In terms of liquidity risk, our main activity is savings and investments, and therefore we have quite low risk appetite. This is not really risk-driven.

If you have a growth of above 40%, and if you look at the price even after a 10 basis points increase, it's very, very attractive still. We should also keep in mind that in the latest interest rate cycle, when interest rates were increased, we didn't fully pass on that interest increase all the way to customers, so that is also in some way compensating for that time.

Understood. I understand you don't have access to wholesale funding markets for mortgage covered bonds the way the large cap banks does, you need to be a little bit careful with your mortgage to deposits ratio and all that.

Thank you. That's all for me.

Thank you. Can you hear me?

Yes, we can.

Perfect. A follow-up there on the mortgage offering being paused.

How do you view this being aligned with your target of being the number one Private Banking player in 2030? Doesn't this go in the opposite direction towards that?

Because pausing an offering, isn't that bad for the user experience, or how do you view that?

You're partially right. On the other hand, we give more incentives to gather more of our Private Banking customers' savings with us such that they come up to that threshold.

It is an important product to unlock the big banks' attempt to retain savings with their customers by arguing that you can get a good mortgage rate, but then you need to retain the savings with us. We like the product.

We would like to do much of it, but we just need to manage our balance sheet in a prudent way.

I see. Thank you.

In terms of number of employees, I noticed that the growth of number of employees is the highest level since the pandemic. It seems to be up 15% year-over-year.

Can you elaborate a little bit what is driving this increase and where are you adding capacity, and how should we think of the cost base then looking into next year as this growth will come with a lag effect on the cost base?

Yes, thanks, Patrik, fair question. The overall increase in staffing is in line with our strategy where we want to grow in our prioritized areas, including cloud migration, Private Banking, pension, not just people talking to the customers, but also those building the product and also operationally improving the processes.

That's in line with that plan. The growth has been, as you say, larger '26 compared to '25, but both '25 and '26 we have seen a growth.

That overall trend is according to plan. Then there will always be a little bit of variation around that, and in particular in Q3, when we disclose FTE data, there is always an impact from hourly-employed employees who work more during the summer.

If you look at Q3 compared to other quarters, you will see that effect typically across most years. That exaggerates FTEs a little bit during summer periods.

Then another explanatory factor why we're increasing FTEs relatively more in '26, which is more '26-related, is the fact that we employ staff related to a Denmark expansion, obviously. In some cases we use consultants; in some cases we employ staff.

Part of the staff increase is related to the Danish expansion. Then if you look into the future, how to extrapolate this, it's a little bit difficult.

One should say not just related to staff, but in general, what is an underlying quarterly run rate? Because there will always be some costs that end up in some quarters.

If you remember last year, it was quite heavy towards the end of the year, so that's difficult when compared with last year's. Also this year, there will be some variation between the different quarters.

In particular related to staff costs, there will also be some variations related to vacancies, to leaves, parental leaves, how much vacation is taken out, etc., etc. If you look into 2027, as was said earlier in the call, we have seen a significant investment in FTE increase this year.

We will not see as large FTE increases going forward, in particular into 2027, where the staff increase will not be as large going forward. That's based also on the overall cost guidance with an 8% cost increase during the strategy period, and it was 11% last year, 9% this year, which means with the increased staffing that the room for additional FTE increases will be significantly less in next year.

Hope that answered your question, Patrik.

That was a great answer. My last question is, according to the Swedish National Debt Office, the resolution fund should be filled and cease to exist from next year.

In the NII bridge there, how much is the resolution fund fee that you pay? Do you see that this fee should also cease to exist, or do you have a different view of this?

It was 22 in the quarter.

We have no clear view at this point whether that will be reduced or not. We will need to look into that.

So 22 per quarter, yes?

Yes.

Because you also write that it's insättningsgarantiavgift in there, but I don't know if that is the same amount, yeah?

Not sure about this, but actually I can look and get back to you.

We can follow up on that, Patrik. Okay.

Thank you.

Good morning. Interest expense on deposits rose on higher average savings account balances, and the average deposit raise rose also this quarter.

Is this customers moving cash from ISK into the savings account, or is it due to lower inflows and clients being net buyers during the quarter resulting in lower balances?

If we take the the deposit volume as a whole, then it is a risk-on, a a appetite to activate more of the capital into risky assets. Then what client behavior makes our customer choose a savings account to a larger degree?

I I don't have a good answer to that one. More than it would be logical that it's more the transaction deposits that are activated to a larger extent than the savings account deposits, to speak.

Okay. Did you see the flow reverse towards quarter end and what are you seeing now in October?

You have the 3-monthly statistics where you see the deposit development. I think during the quarter, we have seen fairly consistent net buying of risky assets, which per definition means slightly lower deposit volumes.

At the end of the quarter, our customers had held 8.9% of their savings capital in cash. That is clearly lower than we have seen in the quarters before this one in the year.

When you look at a longer time series, it fluctuates from lower values to quite higher values. It really depends on the risk-on, risk-off perspective of our customers.

That's fair enough. Could you also remind us of how reduced disposable income from political new taxes, etc., have hit your clients and trading behavior in the past?

I think if I start by looking ahead, I feel quite relaxed about who will sit in Rosenbad and and govern Sweden when we finally get a new government. Do they have different perspective on things that are close to our heart?

Yes, they have. It's has been discussion about banking tax.

It has been discussion about how to treat ISK. We want to push for the deductible possibility on on margin lending in the capital endowment product.

Overall, we feel quite relaxed and feel that we will prosper in in in any case. What I would like to say is what we help our customers with is to get exposure to corporates.

When you invest in the stock exchange, you invest in corporates. I hope we will have a government that is positive towards corporates and corporations.

I'm

just thinking. It sounds like that you're not worried that we might get a real estate tax, a millionaires' tax, the old [vinstskatten?]

back on the table, increased capital taxes, etc. All of this is going to reduce the willingness to invest, right, and reduce the disposable income, maybe pushing down the risk profile of your clients resulting in maybe more liquidity going into mutual funds rather than pure equities.

I don't recognize that type of behavior. What we can see and what the textbook says is if the government is saving more, i.e., increasing the taxes, the private sector typically saves slightly less and vice versa.

We have now seen disposable income going up for the last 2, 3 years with low inflation and real positive salary development and lower interest rate costs. I hope that that will continue, that the Swedish households will continue to prosper.

I agree with you. I hope you're right.

We'll see, I guess.

Yeah.

Hi, thank you for taking my questions. Gustaf, you said in one of the earlier answers that you thought that deposits should grow in line with assets under custody over time.

Investors are very skeptical about this. Could you just talk about your expectation specifically for the platform deposits, i.e., deposits excluding savings, as a share of assets under custody?

You're now 4% of investment assets under custody. How should we expect this to evolve going forward?

How low can this realistically go? There's, as a follow-up to that, there's been a lot of debate about, in the market, about AI agents allowing customers to optimize deposits across banks and investment platforms as well.

Do you think that this may result in lower platform deposits for your business going forward?

Two questions in one, Andrew. If I start with the first one, to forecast the share of deposit and different types of deposits as a share of the savings capital is difficult.

What can I rely on? I can rely on historical time series.

What do we see there? We see that our customers hold between 7% and 12% historically of their savings capital on our balance sheets.

Now up until recently, as you recall, we also had this external savings accounts. If I include that, then the range increases to 11% to 16%.

We're now at 8.9%, if I look at the historical numbers on deposits on our balance sheet, it's a little bit below average, but not dramatically strange. The question is that I have in my head, how should I relate that more to the total deposits they had with us before when we had the external deposits?

Then it's low. Then your second question around will the client behavior when it comes to deposits change as some investors thought when news came out and it's hard to predict, but I think that the cash that is sitting on our balance sheet, to the largest extent, is a byproduct of our customers investing on the stock exchange directly or through funds.

They're not always fully invested. They're waiting for better times.

They are uncertain and they wait. That ends up with this, as we have now, 8.9%.

Will customers behave totally different in the future? I think they want to have their cash readily available to get into risky assets.

One analogy is, why do Swedes like ETFs more now than they did 2 years ago? Maybe they saw the effect of Liberation Day and other events when you thought you got into the market or out of the market instantaneously, but you didn't, because with mutual funds, it happens like 1 or 2 or 3 days later.

Again, it's hard to predict, but I'm not very worried about that.

Thank you very much, very helpful.

Hi, good morning. Thank you very much for taking my questions.

I just wanted to firstly come back on one of your previous answers just around the margin point again. I appreciate you said not necessarily extrapolate what we've seen in Q3, but for example, if volatility were to remain lower, why would we not use that as a baseline margin?

Then secondly, on the Danish costs, it's obviously really good that that's coming in better for '26, and you talked about the kind of efficiencies that you've seen so far. Given you're holding that total cost guide unchanged, are you building some additional conservatism in there, or why wouldn't you change that now for us?

Thank you.

If I start with your last question, I'll give your first difficult question to Jonas. When it comes to Denmark, now we are in mid-October, we have fairly good visibility on where the total costs for Denmark will end up this year, and that is positive.

We are able to progress at a lower cost. Now your question is, why don't you change guidance up until launch?

It's still early stage, and it's difficult to know what could pop up. Would we need to do some other legal investigation?

Would we need to solve a problem on the custody side that we didn't think of at this stage and so on and so forth. We want to see more visibility before we change our view on the total cost.

Just adding to the Danish cost question, how we optimize, for instance, between employing staff versus using consultants is an example of a swing factor where the cost difference is like a factor 4 or 5, so that obviously impacts a little bit how we choose to do things going forward. A second important parameter would be when the launch happens in the second half of 2027, i.e., the period up until launch, costs included in that is also creating a little bit of a span obviously.

Considering all those factors, we thought it was reasonable to maintain our previously given estimate. The first question, the line was a little bit difficult for, but that was the margin, right?

It was around I read it as we have had lower activity among our customers in general this quarter. Why do you, Jonas, say that it's not necessarily something you should extrapolate in the future?

Your question, Grace, was if we would have the same environment on the stock exchange, would we see a similar behavior? What can we rely on?

We can rely on historical data, and then we see exactly what we see now in Q3. When we have a more challenging trading environment, then activity goes down, that's one of the effects.

The other one is that the broad customer group becomes more reluctant to act, whereas our more experienced customers, they continue to trade.

As Gustaf showed earlier in the presentation, in terms of the share of brokerage coming from Private Banking and Pro customers, how that has developed the last 3 or 4 years, there's a variation around a quite stable line where Q3 was slightly above that general share, which is in line with how the market has developed recently.

Understood. Thank you very much.

Good morning. Maybe the first question on the FX income.

That we're seeing that kind of take rate in the FX, is that just the customer mix? Or do you also see any tendencies that your Pro, PB clients are now more inclined to actually use the FX accounts you introduced a while back?

When we look at the data, we saw an uptick of that after launch, but that it has been quite stable since then, and quite stable in Q3 versus Q2. That's not the driver.

It is the mix effect of PB Pro versus the broader segment.

Great. Then a more bigger picture question on costs.

Given if you're saying Denmark is now looking a little bit cheaper than you expected before, you're able to do more in-house. Is that more general efficiency gains that you can get more done, or is it specific parts of the launch process that you just happen to be able to solve in-house?

I'm just thinking your long-term cost trajectory, the 8%, is there anything now you've learned with AI that enables you to launch abroad easier, etc. that's making you feel like the 8% could actually be lower?

Our guidance of 8% still holds, but just looking first at Denmark short term and then at the learnings from Denmark long term. If you start with the short-term effect, it's really about the estimate that we have this year.

Now when we have more visibility, we believe the costs will be somewhat lower. That's really not the effect of sort of efficiencies in that work, but rather the mix of cost drivers when building this new platform.

Just as an example, if we were to use external legal support to investigate in a certain area, that's easily 1 or a couple of millions, more or less, in Swedish krona, so that explains that short-term, which means that those costs could appear in '27 if those kind of needs arise, which using the guidance that now might possibly happen. However, more long term then, I would say we're building something new in Denmark, a new platform, but also new ways of working, and it also shows when you develop something from scratch using AI methodologies, we learn a lot from that and try to use these learnings in other parts of the organization.

That is an additional value that at least to me has become clearer and clearer the further we have progressed into our Danish expansion. It was not sort of one of the rationale for doing the expansion, but it's a very positive side effect that we learn from that, and how we can use these learnings in the Swedish business as well.

In particular then how we use AI methods in technology development, but also all the other things that we build in Denmark so we have a way of reusing those learnings in other parts of the organization, and hopefully that will lead to us becoming even more efficient. At this time, we still stick to the strategy guidance that we have today with 8% cost increase during the strategy period.

Excellent, thank you.

Hi. Good morning.

Thanks for taking my question. Essentially, I wonder if deposit volumes decreased mainly driven by improved risk appetite, i.e., a risk-on mentality, why do we then see a bit weaker trading income?

If broader customer base becomes more cautious now, then can we say that deposit volumes decreased because of risk-on? See what I mean?

That's my first question.

Yeah. Good question.

I think one needs to separate do I want exposure to risky asset, yes or no? There we see a bigger appetite to activate more of the capital in the stock exchange.

We saw that the means to do that this quarter was more through broad exposure. It is a willingness to invest, which is a kind of risk-on, but we didn't see this appetite to take thematic directions to the extent that we have seen before, but rather going with broad exposure to risky assets, i.e., funds.

You need to take into account the very heavy inflow into funds, which is a clear data point to that. To get more activity, our customers rather want more directions to trade on, i.e., more volatility, a more positive stock environment in general.

The stock market actually went up 2.something percent in Stockholm, it was not a bad month per se, but September, for example, was only the second red month this year, it was a different environment in Q3 than we have seen in the earlier part of the year.

Thanks a lot for that. On NII, the share of ISK deposits decreased somewhat.

I guess my question is in an increasing rate environment, if and when Riksbank starts to hike rates, how should we think about the migration of deposits to savings account, i.e., some mitigation to the potential pickup in NII due to such mix effects?

Yes, very difficult to predict where deposits will go, in particular if you would look at historical data, that would be also a bit difficult to relate to given the fact that the savings account was introduced for private individuals, I think it was in 2023. That was in a rising interest rate environment, and we did have the external savings account at the same time.

If you look at historical data, that might be difficult to draw conclusions from that. I would say, in summary, that very difficult to say how the proportion will change, both shift-wise, but also the pass-through rates, obviously, both on savings accounts and transaction accounts.

As we said before, we will make those decisions in connection with the Riksbank repo rate changes based on competition and the circumstances around when the rate decision is made. Sorry for not a super clear answer, but it's difficult to give a guidance on that.

All

right. That's it for me.

Thank you.

Hi there. Morning, team.

Thanks for the presentation and thanks for taking my question. I've just got one question on net inflows.

Given that you've paused the mortgage offering for those in the 3 to 10 million bracket, how much should we expect your net inflows to slow down over the next few months? Part of the reason I ask this is, if you look at your net inflows over the last few months, they've materially accelerated year-over-year, but that hasn't really been mirrored in the customer growth.

It looks like there's been a reasonable amount of client behavior where my guess would be either you're acquiring more Private Banking customers or you're seeing a shift like a top-up to the 3 million level so that they're eligible to access this mortgage offering. Thank you.

Good question. So, two points from me.

One is if you look at the savings capital growth across our three customer segments, you see a high higher growth for the Private Banking segment. That's what we want to see also in the future.

This is one of our strategic priorities. Is Jacob, who is responsible for private and investment banking, is he is he super happy about pausing the mortgage for the 3 to 10 million customer?

No. Am I still positive towards our traction on the Private Banking side?

Yes, absolutely. When I, the second point is, when I look at where does the net flow come from this quarter, 1/3 comes from existing customers and 2/3 from, no, sorry, 1/3 from new customers and 2/3 from existing customers.

Increasing share of wallet is is is an important part of our strategy. It's it's it's the first pillar, where we I think slowly but surely is getting better and better at getting a bigger share of the wallet.

In Q3, 1/3 new customers, 2/3 existing customer, it's not it's not exceptional when I look at the time series, even though it fluctuates quarter to quarter.

Okay. Is it still reasonable to expect a bit of a slowdown in the net inflows now that this offering is paused?

Or would you expect to continue to see the really strong net inflows that you've been seeing over the last few months to continue?

The isolated marginal effect is not positive, but I think we will still have a nice inflow on the Private Banking side.

All right. That's fair.

Thank you.

Hi, thank you. Thanks for taking my questions.

Partially you already answered similar ones. I just wanted to go back.

Briefly just generally if we think that we are getting into a new rate cycle and it's still very fresh in investors' head the previous one, would you agree with the statement that actually in terms of the rate that you will have to pass on to customer is probably higher than what it was through the previous cycle? I'm just saying that because quite a few names in the UK, for example, even if rates are increasing, are not guiding for an increase in the net interest margin they can achieve just because I think clients have a higher expectation of receiving that benefit.

Then a second question, just on your investments in technology and thinking about the cloud migration, can you just provide any additional color on whether you think you'd be able to achieve some net cost savings over the next 3, 5 years? I'm thinking, for example, reducing the number of employees or reducing other costs, not just slowing down, but actually achieving some net savings there.

Thanks.

Should I start with the pass-through?

Yes.

Rates. I understand or interpret your question as what will the pass-through rates be for both lending and deposits.

As we said before, we will decide upon that in connection with each and every rate hike. You can look at how things were in the history, but things were different then, both in terms of what rate levels there were and how rate changes changed, and why they changed, as well as the product offering was different.

We didn't even have, for instance, the savings account back in those days which in those days meaning, for instance, that what may be more pressure to increase interest rates on transaction accounts. Those things should be taken into account.

There is no more guidance to give in terms of pass-through rates other than that we believe net interest margin will expand if rates increase, as we believe they will within short. The other question was around the cloud migration, and did I hear AI also?

Just

more generally, whether we can expect, at some point in the future, not just a slowdown in cost growth, but actually some net reduction coming from all of these investments you are making. The plan is,

we could steer our cost base quite a lot already today if we wanted to. Now we have invested and increased our staff to be able to do more per time unit.

We're doing a lot of things in parallel now with advancement on cross-selling, Private Banking, occupational pension, moving the platform to the cloud, building a new platform in Denmark. I would say, right now, we have more things on our plate that we would like to do than we can.

Whatever we find in efficiencies here and now is deployed in faster execution. How that will be in 2 years' time, I don't know, but the best prognosis we have is to follow our guidance that we set out in strategy 2030.

Yeah.