Interim report, January - March 2016

□    Growth in number of customers remained strong at 26,200, an increase of 6
per cent since the beginning of the year to 493,800 customers
□    The net inflow decreased during the quarter due to market turbulence
□    Operating income increased by 2 per cent Y/Y to SEK 226 million, but
decreased compared with the fourth quarter mainly due to mix effects in equity
trading
□    Operating expenses increased by 5 per cent Y/Y to SEK 112 million (107), a
result of increased personnel costs
□    Net profit for the period was stable at SEK 98 million (99)
□    The Annual General Meeting on 5 April 2016 decided to re-elect all board
members except Martin Tivéus, who declined re-election. As proposed, a dividend
of SEK 10.50 per share was authorised
□    Henrik Källén, Deputy CEO, will take over as Acting CEO from 1 June until a
new permanent CEO is appointed and takes the position

                         Q1 2016  Q1 2015  Change%  Q4 2015  Change %
Operating income, SEK m      226      222        2      253       –11
(1)
Operating expenses, SEK     –112     –107        5     –112         0
m (1)
Operating profit, SEK m      115      115        0      140       –18
Net profit, SEK m             98       99       –1      118       –17
Earnings per share, SEK     3.35     3.43       –2     4.03       –17
Operating margin, %           51       52       –1       55        –4

Net inflow, SEK m          4,960   10,000      –50    5,790       –14
No. new customers (net)   26,200   31,800      –18   23,700        11
Savings capital at the   188,900  168,200       12  191,600        –1
end of the period, SEK
m

(1)    As of 2016, the deposit guarantee fee and the stability/resolution fee
are reported as interest expenses and has therefore been transfered from other
operating expenses to net interest income. Historical numbers have been
adjusted.

Quarterly highlights
□    Launched the possibility for customers to transfer money in real time to
their Avanza accounts on evenings and weekends
□    Launched a new Android app with new functions and improved user experience
□    Ranked as one of Sweden’s 100 best sites by Internetworld
□    Topped Apica’s survey on the best web performance in 2016 in the category
banking and insurance

Comments of the CEO

Strong customer growth in unsettled market

The first months of the year are usually distinguished by strong customer growth
and high activity when many customers reassess their savings for the year ahead.
This year was no exception. We delivered our second best quarterly growth ever
with 26,200 new customers despite a volatile stock market, geopolitical turmoil
and a further drop in market interest rates. The effect of the rocky market
climate has instead affected net savings. Even if more customers than ever made
deposits, the market conditions resulted in lower net inflow per customer,
especially from existing customers. Historically, we have, however, seen the net
inflow rebound when investor’s faith in the market return. Long term, a strong
customer growth is therefore key to growth in net inflow and savings capital, in
order to create growth in operating income.

Operating profit in line with previous year

Operating profit for the first quarter amounted to SEK 115 million, in line with
the same period last year. However, several large movements are hiding under the
still surface. On the strength of our customer growth, we continue to gain
market shares. Net brokerage income rose by 11 per cent year on year, while
interest income was squeezed further by the Riksbank’s repo rate cut in
February. Our net interest income fell 28 per cent compared with the same period
in 2015. The geopolitical concerns also impact fund savings, as reflected by
lower income from fund commissions as savers sought out the safe harbours of
index and fixed income funds. This trend could quickly turn, depending on market
conditions.
A positive factor for the second quarter inflow is that in March we extended our
cooperation with Remium, which we estimate will lead to a net inflow of SEK 2.5
billion.

Prioritised areas for 2016

Our focus areas in 2016 are to maintain a strong growth rate, further improve
our digital decision-making tools and reach new customer segments, as well as
further streamline our business to increase scalability and quality. During the
quarter, we were the first Swedish bank to offer customers real time deposits
from other banks on evenings and weekends, which was positively received. We
completed a reorganisation in Private Banking to further improve our service
level towards our growing customer segment. We already see higher satisfaction
in customer surveys. We are continuing to enhance our occupational pension
offering to maintain a strong growth rate. The number of customers increased by
40 per cent year on year. At the end of the quarter we launched a new, improved
mobile trading app for Android to offer a better user experience for our
customers and simplify their savings. The new app also better enables further
improvements of the offering. The number of customers who use our services
through mobile devices now exceeds those who use a computer and the development
of mobile services remains a priority.

As a foretaste of what is to come in the second quarter we introduced a greatly
improved stock screener in April. This provides the ability to instantly produce
a selection of stocks that match one’s investment strategies. April also saw the
release of the Reputational Survey for 2016, where Avanza maintained its top
ranking in public confidence among Sweden’s banks. A great proof that our
efforts to create a better, simpler and inexpensive alternative for the
country’s savers are bearing fruit.
Stockholm, 19 April 2016

Martin Tivéus, CEO Avanza

The information contained in this report comprises information that Avanza Bank
Holding AB (publ) is obliged to provide as well as that which it has chosen to
provide in accordance with the provisions of the Swedish Securities Market Act
and the Swedish Financial Instruments Trading Act. The information has been
released to the market for publication at 08.15 (CEST) on 19 April 2016.
For further information please contact:

Martin Tivéus, CEO
+46 (0)70 861 80 04

Birgitta Hagenfeldt, CFO
+46 (0)73 661 80 04

Sofia Svavar, Head of IR
+46 (0)8 409 420 17
sofia.svavar@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 490,000 customers and more than SEK 180 billion in savings
capital. This is equivalent to just over 2.9 percent of the Swedish savings
market. Avanza is the largest in terms of the number of both transactions and
turnover of Swedish banks on the Stockholm Stock Exchange. During the last six
years Avanza has won SKI’s (Swedish Quality Index) award, “Year’s Most Satisfied
Savings Customers”. For more information visit: http://www.avanza.com.