Preliminary Financial Statement 2014

  · Net inflow totalled SEK 20,100 million (SEK 10,900 m), corresponding to 18
(13 %) per cent of the total savings capital at the beginning of the year
  · The number of customers increased by 17 (12 %) per cent to 371,200 (316,500
as of 31 December 2013)
  · The total savings capital increased by 26 (31 %) per cent to SEK 141,900
million (SEK 112,600 m as of 31 December 2013)
  · Operating income increased by 17 (6 %) per cent to SEK 696 million (SEK 597
m)
  · Operating margin was 43 (38 %) per cent
  · The profit after tax increased by 30 (21 %) per cent to SEK 250 million (SEK
193 m)
  · Earnings per share increased by 30 (20 %) per cent to SEK 8.64 (SEK 6.67)
  · Pre-tax profit was burdened by provisions of SEK 8 million concerning VAT
referring to the years 2010–2012. The effect on profit after tax was SEK –6
million
  · The Board proposes that a dividend of SEK 7.00 (8.00) per share be paid

Fourth Quarter

  · In October, Avanza launched a new price list for trading on the Stockholm
Exchange and became the first bank in Sweden to offer stock trading with the
minimum charge starting at SEK 1
  · Operating income increased by 19 percent (24 %) to SEK 193 million (SEK 162
m)
  · The profit after tax increased by 28 percent (80 %) to SEK 69 million (SEK
54 m)
  · Earnings per share increased by 28 percent (78 %) to SEK 2.36 (SEK 1.85)
Comments from the CEO

All time high in customer growth and net inflow of capital

The fourth quarter was a worthy end to a fantastic year in terms of growth. With
16,000 new customers and net inflow of capital of SEK 5,900 m, this is the
strongest growth we have ever achieved in any one quarter. Furthermore, new
highs have been achieved in both customer inflow, with 55,000 new customers
(33,200), and in net inflow of capital, by SEK 20,100 (10,900) m, for the whole
of 2014. The 8.9 per cent of net inflow of capital into the Swedish savings
market means that after the third quarter we have significantly exceeded our
long-term goal to achieve a minimum 7 per cent.

The strong growth is also apparent, despite falling market interest rates, in
the operating profit where SEK 82 m for the quarter represents an increase of 28
per cent compared with the previous year. The primary reason for this is
increased trading activity, as due to prevailing low interest rates our
customers looked for returns on the Stockholm Stock Exchange; a market place
which has acted as a good harbour for investment during 2014 with a total return
of 16 per cent. The strong stock climate is also reflected in an exceptionally
strong quarter for our Corporate Finance Department, which more than tripled its
income compared with the previous year. An important reason for this is our much
stronger position in the retail market and our much greater savings capital,
which makes us more attractive for future share issues and other commissions.

2014 operating profit increases by 34 per cent despite pressure on net interest
income

With the strong net inflow of capital behind us, we managed to achieve an
increase in savings capital of 26 per cent for the year, which together with
increased trading activity contributed to an increase in operating incomes of 17
per cent, despite slightly declining net interest income in the slipstream of
the falling repo rate. We thereby strengthened the operating profit for the
year, before provisions for VAT, by 34 per cent to SEK 304 m. A continued focus
on cost control and ongoing efficiency improvements also mean that the cost to
savings capital ratio during the year reduced by 18 per cent from 38 to 31 basis
points and the operating margin thereby increased from 38 to 43 per cent.

Sweden's most satisfied savers for the fifth year in a row

In the previous quarter I wrote that we should continue to strengthen our
leadership within savings and investments; which we did with the launch of our
new price plan during the fourth quarter. We are now the only Swedish bank that
offers share trading with a minimum one krona brokerage, which has led to an
increased customer inflow at the end of the year and the receipt of Privata
Affärer's award of "Price Presser of the Year". Our most gratifying achievement,
however, was winning the Swedish Quality Index's (SKI) award for "Sweden's most
satisfied customers within savings" for the fifth year in a row in December. For
the first time we also won all seven sub-categories, including loyalty, product
quality and service. Customer satisfaction is, and will continue to be, our most
important focus and the SKI award is the ultimate evidence that our work to
create a better alternative for the country's savers is bearing fruit.

Increased capital requirement taken into account

The new Basel III and Solvency II regulations entail increased capital
requirements in the years ahead for both the bank and the insurance company. An
almost doubled growth rate during 2014, combined with continued favourable
growth conditions for 2015, is expected to increase capital needs still further.
This means that for 2014 we are choosing not to retain the high dividend payout
rate we have had in recent years. The Board's dividend proposal for 2014 is
therefore 7 SEK per share, equivalent to 81 per cent of the annual profit, in
accordance with our aim to distribute a minimum of 70 per cent of profits to the
shareholders.

During the fourth quarter, we started to more actively handle our excess
liquidity in order to achieve better capital efficiency than in the past.

Focus in 2015

In 2015 the focus of our operations will be on three main areas: maintaining the
company's strong rate of growth, developing our mobile presence (this should be
ready by the summer) and continuing to achieve further efficiencies to improve
scalability and quality. As part of this, we are opening a new sales office in
Malmö, specialising in pensions and private banking in January, as planned. We
are also continuously initiating and evaluating new innovations. However, sound
cost control continues to be critical in enabling us to get on and remain
competitive moving forwards. We are clearly on the right path in this area.

The strong finish to 2014 in terms of trading activity and net inflow has
continued during the beginning of 2015. So, another exciting year ahead.

Stockholm, 21 January 2015

Martin Tivéus, CEO Avanza
For further information please contact:

Martin Tivéus, CEO
46 70 861 80 04
martin.tiveus@avanza.se

Birgitta Hagenfeldt, CFO
46 73 661 80 04
birgitta.hagenfeldt@avanza.se
Avanza is an Internet bank founded in 1999. The Parent Company, Avanza Bank
Holding AB (publ), is listed on the Stockholm Stock Exchange. Avanza’s vision is
that as a customer you will have more money in your pocket than if you banked
with other banks or institutions. The services include, amongst other things,
saving in shares, funds, savings accounts and a strong pension offering. Avanza
has more than 370,000 customers and more than SEK 140 billion in savings
capital. This is equivalent to just over 2 percent of the Swedish savings
market. Avanza is the largest in terms of the number of transactions of Swedish
banks on the Stockholm Stock Exchange. During the last five years Avanza has won
SKI’s (Swedish Quality Index) award, “Year’s Most Satisfied Savings Customers”.
For more information visit: www.avanza.se