Investing.com — Avanza Bank (ST:AVANZ) third-quarter profit fell short of analyst expectations as lower trading activity and weaker income margins weighed on brokerage and currency-related revenue.
The Swedish online broker reported operating profit of SEK 920 million, up 13% year on year but below consensus estimate of SEK 935 million. Operating income rose 12% to SEK 1.283 billion, missing estimates of SEK 1.310 billion, while net profit increased 13% to SEK 790 million, below the SEK 801 million forecast.
Operating income fell 4% from the previous quarter, which had been a record, as net brokerage income, currency-related income and net interest income declined. Net brokerage income slipped 12% sequentially to SEK 308 million, while net currency-related income also fell 12% to SEK 197 million.
Fund commissions provided a partial offset, increasing 8% from the previous quarter to SEK 244 million as fund assets grew. Net interest income declined 4% sequentially to SEK 464 million due to lower income from surplus liquidity.
Operating expenses fell 11% sequentially to SEK 362 million, mainly because of seasonally lower personnel costs. The operating margin rose to 72% from 70% in the previous quarter, while return on equity increased to 44% from 43%.
Customer activity remained strong despite lower trading volumes. Avanza added 52,800 customers during the quarter, taking its total to 2.39 million, while net inflows increased to SEK 23.1 billion.
Avanza reduced its expected 2026 costs related to its planned Danish expansion to SEK 40 million from SEK 50 million, citing savings from using internal expertise rather than external support.
The total estimated cost of establishing the business through its planned launch in the second half of 2027 remains SEK 120 million to SEK 150 million, the company said.
The company maintained its full-year cost guidance for its Swedish business, expecting costs to rise 9% in 2026 excluding international expansion.
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