Nordnet Reports Lower Profit Amid Customer and Lending Growth
Nordnet's operating profit decreased by 20 percent to MSEK 68.5 in the second quarter of 2016. However, the company saw a 13 percent increase in its customer base and a 23 percent rise in lending.
Nordic savings and investment bank Nordnet reported a 20 percent decrease in its operating profit for the second quarter of 2016, amounting to MSEK 68.5. Operating income also declined by 1 percent to MSEK 293.5 compared to the same period last year.
The company attributed the profit reduction to lower interest income resulting from decreased market interest rates and a reduced net commission income. This reduction in commission income was influenced by a higher proportion of trades from customers with lower price points and price reductions in equity trading.
Despite the profit dip, Nordnet experienced significant growth in customer acquisition, with its customer base expanding by 13 percent over the last twelve months, reaching a total of 523,000 customers. Trading activity increased by 23 percent year-on-year, with customers executing 5.4 million trades during the quarter.
Lending operations showed strong performance, with total lending increasing by 23 percent to MSEK 7.6 billion over the year. In April, Nordnet launched what it described as Sweden's cheapest mortgage product. The bank also introduced a new "get started" account in Sweden offering commission-free stock trading for new savers.