Today we published our report for the second quarter. We are showing persistent growth, a fact that I am both proud of and humbled by. In the second quarter, more than 5,000 private individuals in the Nordic region chose to start saving with Nordnet, and our customer base now totals almost 380,000 people. In the April–June period, net savings amounted to SEK 2.2 billion, an increase of 10 percent compared with the year-earlier period. Our operating profit for the second quarter totaled SEK 68 million, which is an improvement of 28 percent compared with the same period last year.
The number of trades is the same as Q2 last year, and fell by 6 percent if you compare January-June. Depending on a long period of uncertainty regarding global economic growth, major swings on the stock markets and dramatic price drops in individual sectors (such as the mining industry), the private savers have a more cautious approach to direct ownership of shares than before. The trend is towards investment in mutual funds and various forms of fixed-income products. Nordnet now has more than 100,000 fund savers, and our customers’ fund capital totals a record high SEK 22.7 billion. As an expression of our ambition to lead the development within the savings area, we have as the first player in the Finnish market removed all trading fees on the mutual funds that are available on Nordnet’s platform. At the same time, our offering on commission free investments in exchange-traded mutual funds continues to attract new customers.
In the second quarter we have focused in particular on innovation and social savings. Being at the forefront of innovation is essential if we are to be a relevant alternative for savers. When I ask our customers what they consider to be most important when it comes to choice of online bank, most respond that the content and design of the online service is the key factor. Our agenda in this area is clear – we aim to deliver a superior digital offering to Nordic savers. That applies to both your experience of the online store – user-friendliness – and the products that are available.
The trend of consumers using digital channels for social networking can be seen within savings as well. In June, Nordnet acquired a majority stake in Shareville; a Swedish service that allows members to invest in shares and mutual funds using funny money, and follow and discuss saving with other users. The idea behind the acquisition of Shareville is to launch the service in Norway, Denmark and Finland as well, and to integrate Shareville and Nordnet. Shareville will help us break the banks’ monopoly on communicating with their customers, and release the power of collective knowledge that exists among Nordic savers. We want to create a digital society where customers share their experiences and inspire one another to make successful investments.
Please do get in touch with me if you have any questions or comments on our business. You can reach me at hakan.nyberg@nordnet.se, the Nordnet blog or Twitter (@CEONordnet). Our report is discussed under the hashtag #nordnetreport.
Best / Håkan
