Sweden's Avanza Q3 profit rises on higher net interest, commissions

Overview

• Sweden digital savings platform's Q3 operating income grew 12% yr/yr, driven by all income streams

• Q3 net income and EPS both rose 13% and 12% yr/yr, respectively

• Company launched Avanza Sigma, expanding product offering to include asset management

Outlook

• Company expects full-year cost increase of 9% excluding international expansion

• Company lowers 2026 international expansion cost estimate to SEK 40 mln from SEK 50 mln

• Avanza maintains SEK 120–150 mln total cost estimate for Danish launch period

Result Drivers

• INCOME STREAMS - Co said Q3 operating income growth was mainly driven by net interest income, net fund commissions, and net currency-related income

• PRODUCT EXPANSION - Launch of Avanza Sigma expanded product offering to asset management, contributing to operational performance

• CUSTOMER ACTIVITY - Co said increased customer willingness to invest led to strong net purchases and record-high inflow to mutual funds

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

• Wall Street's median 12-month price target for Avanza Bank Holding AB (publ) is SEK430.00, about 14.3% above its October 15 closing price of SEK376.30

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads

• Oct 14 - Sweden's Avarda Bank Q3 loans climb 20%, profit up 29%

• Oct 14 - Sweden's SEB must hold more capital, shares fall 4%

• Oct 15 - Nordea Bank meets Q3 profit estimates on growth in savings and investments

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)