Avanza Bank (Hold, TP: SEK223.00) - Rising NII reliance
Avanza’s revenue mix shift to net interest income (from commissions) continued in Q2, as NII composed 47% of revenues; the highest yet in a quarter. Since we believe NII is likely to be near peak, we see the elevated NII reliance supressing Avanza’s earnings growth over the next couple of years; we forecast ~0% earnings growth over 2023–2025. We have left our 2023–2025e EPS largely intact (higher NII offset by lower commissions), and reiterate our HOLD and SEK223 target price.Avanza Bank Holding is the holding company of the Avanza Bank Group. Co.'s offerings comprise of: brokerage services, which enable investments in Swedish and foreign equities, bonds, funds, derivative financial instruments including futures, warrants and options, investment advisory services, pension products, pension insurance, as well as capital insurance services. Co. targets private individuals, high net-worth customers, corporate customers, day traders, fund managers and institutions.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.