Interim Report January-March 2015

  · Net inflow totalled SEK 10,000 million (SEK 5,520 m), corresponding to 7 (5
%) per cent of the total savings capital at the beginning of the year
  · The number of customers increased by 9 (5 %) per cent to 403,000 (371,200 as
of 31 December 2014)
  · The total savings capital increased by 19 (8 %) per cent to SEK 168,200
million (SEK 141,900 m as of 31 December 2014)
  · Operating income increased by 30 (15 %) per cent to SEK 225 million (SEK 173
m)
  · Operating margin was 51 (44 %) per cent
  · The profit after tax increased by 52 (44 %) per cent to SEK 99 million (SEK
65 m)
  · Earnings per share increased by 52 (46 %) per cent to SEK 3.43 (SEK 2.26)
  · No significant events have occurred after the end of the reporting period

Quarterly highlights

  · Avanza opened a new sales office for occupational pensions and Private
Banking in Malmö
  · Avanza Forum was held at the Globe arena in Stockholm with over 6,000
visitors (+20 per cent) and a further 50,000 viewers of the web broadcast (+67
per cent)
  · Avanza Zero was named "The Readers' Favourite 2014" in a competition on
privataaffarer.se
  · Avanza was voted "The People's Favourite 2014" at Bankbetyg.se
  · Avanza surpassed 400,000 active customers
  · Placera.se hit a record in number of visitors
  · Avanza's Fund-in-Funds surpassed SEK 1 billion in managed capital
Comments from the CEO

The negative interest rate creates greenhouse effect

Many people review their savings before the start of a new year, which leads to
increased customer growth and activity during the first months of the year. This
year was no exception. At the same time we have worked hard to strengthen our
services in the recent year, including a new share trading price plan, mortgage
loans for Private Banking customers, doubling our sales strength within
occupational pensions and hundreds of new, on-line functions. The purpose of
this work is to increase our competitiveness and capacity to grow more rapidly
than in the past.

Low market rates have historically been a good climate for growth for Avanza, as
the importance of fees becomes more apparent while interest in the stock
exchange and more active investments increases. Many people are reviewing their
savings due to today's historic negative interest rates, and this is to the
benefit of a company like Avanza, which offers the market's widest choice within
low cost savings and investments.

Against a background of increased marketing efforts over the quarter and the
Swedish central bank's continued reductions in the repo rate, we have achieved
our strongest growth in any individual quarter, with a net inflow of 10 billion
(+81 per cent) and 31,800 new active customers (+119 per cent). This means that
we have already surpassed our long-term goal of 30,000-40,000 new customers per
year. Given the good results we have had in customer acquisition with increased
marketing activities during the beginning of the year, we intend to continue the
efforts in 2015. We therefore expect a cost increase rate of 8-10 per cent for
the full year, compared with the previously announced 6-8 per cent. Trading
activity also significantly increased among our customers during the first
quarter and the number of transactions per customer and per month was 46 per
cent higher than in the equivalent period for the previous year.

The operating profit increased by 51 per cent, despite pressure from interest
rates

The increased interest in the stock exchange is clearly visible in the trading
statistics and in an increasing net brokerage commission income. At the same
time, our trading volumes increased more rapidly than the market, which can be
seen from our market share of trading measured in the number of transactions on
the Stockholm stock exchange, which increased from 7.5 per cent to 9.5 per cent
since the first quarter of 2014. Our new price plan for share trading with a
minimum 1 krona brokerage fee has extended share trading to a new customer
segment, which now has the potential to trade even minor shareholdings without
the brokerage eating into the capital. The combination of a steadily increasing
customer base and high trading activity increased the operating profit during
the quarter to SEK 115 million, which is 51 per cent higher compared with the
same quarter in the previous year.

The falling market rates are simultaneously creating pressure on our interest
incomes, even though the increased borrowing and lending significantly
compensate for reducing interest margins.  At today's volumes, a one per cent
change in the repo rate is equivalent to an effect of approximately SEK 100-120
million on interest incomes annually. Despite the interest rate situation, the
deposit volume grew by 16 per cent during the quarter and, if the trend
continues, the far larger volumes will create good leverage on our interest
income when market rates rise again.

We are continuing to expand within occupational pensions

During January we opened our new sales office for occupational pensions and
Private Banking in the Malmö stock exchange building. Together with our
Gothenburg office, which was established last year, the new Malmö office is an
important keystone in our aim to ensure a strong, consistent growth in
occupational pension trading. After the first quarter, total growth in the net
inflow for the occupational pension products amounted to 34 per cent compared
with the same period in the previous year; we hope to be able to increase this
growth further once the new office has got up to speed.

A new mobile presence and a focus on simplicity

There is a clear trend for far more customers wanting to manage their savings
during the holiday period, and we will, as previously advertised, release a new
mobile presence during the second quarter.

We are also focusing on the need to make it even simpler for our customers to
handle their savings and to find good investment options, regardless of the
market conditions. For example, almost one in every six kronor in savings
remains uninvested at today's interest rates environment, which is a sign that
many customers need better tools and support when making investment decisions.

Stockholm, 20 April 2015

Martin Tivéus, CEO Avanza
For further information please contact:

Martin Tivéus, CEO
+46 (0)70-­861 80 04
martin.tiveus@avanza.se

Birgitta Hagenfeldt, CFO
+46 (0)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 mission
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 400,000 customers and more than SEK 160 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