I’m not really convinced either about how the political outbursts of these bankruptcy investor mannequins in videos published by Nordnet affect the company’s image:
Recent cybersecurity issues + the decline in image sometimes make me wonder if I should dump stocks equal to the leverage from the portfolio and move the rest of the portfolio’s contents elsewhere. It’s just so totally messed up that the company’s most visible faces to the public play so heavily against Europe and into Russia’s hands.
Rahapodi was a great anchor in creating Nordnet’s image. Now it hasn’t been around for a while, and there isn’t a similar flagship that is high-quality in content, neutral, and has a good vibe.
Something similar would undeniably be needed in its place, or to bring costs down. My Finnish investments are with OP, even though the user interface is bad. And Danske is 3 times cheaper for a small investor for international investments.
Nordnet’s service is unbelievably poor; it’s always down on active stock market days, like today, when there are slightly more customers active than usual. This has happened to me several times as well. Their image just keeps declining…
Logging in to Nordnet is no longer possible, at least not with Mobile ID (Mobiilivarmenne). I was placing a sell order and received an error message stating it couldn’t “set, contact customer service”, and at the bottom it said “try again”. When I tried again, it logged me out, and logging back in resulted in that same error message.
I noticed the same when Hims is showing -7% in pre-market and the whole portfolio has taken quite a hit, even though the entire US market isn’t open yet.
Nordnet’s Q2 out today. Compared to FactSet’s forecasts:
Revenue 1293 (million SEK) vs. 1315 forecast
Operating profit 893 vs. 908
EPS 2.84 vs. 2.9
So, we slightly missed the forecasts
The flat revenue development is a bit surprising One would think Trump’s tariff shenanigans would have boosted transaction activity in the same way as the pandemic did back then. Need to dig deeper…
At the same time, a share buyback program was announced. 250 million SEK will be invested, which corresponds to approximately 10% of last year’s net profit. The shares will be cancelled.
Following up on the previous: transaction-based business did grow by +22%, but it did not bring the group’s overall performance into positive territory. The decline in net interest income from the banking side caused a +/- 0 situation.
Nordnet’s Q3 released today. The stock has been running at ATH, but the results were met with a small decline. Market expectations were apparently not met, even though growth continued.
EDIT: From the CEO’s review, I didn’t find anything else to report, other than that a new share repurchase program is being planned after the current one:
“…Nordnet has a strong and stable capital and liquidity situation, and is currently implementing a share repurchase program of its own shares amounting to SEK 250 million. The intention is to repurchase shares for an additional SEK 250 million at the expiration of the current program…”
Apparently, the forecasts were for an EPS of 2.92 and Revenue of 1,310 (mSEK). So, they fell a bit short of the forecasts. Nordnet is indeed interesting as an investment. The stock has performed excellently, and it’s hard to see why the same wouldn’t continue in the long run. Saving and investing are constantly growing. Does anyone more familiar with Nordnet have any comments on the results?
I don’t dare to present myself as a Nordnet expert, but I hold the stock with a small ~4% weighting in my portfolio. I can tell you what I personally paid attention to.
The company’s profit has grown “modestly” in recent quarters relative to the growth in users and AUM. In my understanding, this is due to the Nordic preference for variable-rate loans, which, with falling interest rates, have affected the company’s net interest income. The best image to illustrate this is a broader income statement:
As can be seen, “brokerage income” (net commission) and “banking income” (net interest) are roughly equal but moving in different directions. In my opinion, it is essential to understand that banking income is expected to stabilize as interest rates stabilize. Thus, in the future, the growth of the brokerage side (a massive +30% atm) will determine the group’s growth, as the net interest income will no longer hinder growth.
I thought the result was good because the company’s gross margins remained high despite expansions into new exchanges (Portugal/etc.) and investments in Germany. There are no signs of the brokerage side’s growth stopping. Ask yourselves: If your acquaintance wanted to start investing and asked you to suggest a broker for this purpose, why would you recommend anything other than Nordnet? IMO, the company has found a winning concept, at least in the Nordics.
The biggest question in the coming years will, of course, be Germany and the company’s ROI as it expands there.
Reading between the lines, did I understand correctly that Nordnet has nevertheless benefited from the highest interest income during the period of high interest rates, which has risen to a more significant role in the group’s overall operations over the past couple of years? But now that interest rates are stabilizing (and likely falling), will this also be reflected as a stabilization or decrease in the “net interest income” line? In other words, will brokerage fees determine the overall picture more again? However, interest income still constitutes a rather large part of the total. It is certainly the case that brokerage fees from trading determine the group’s growth, especially now that we are expanding (and have expanded) into other markets.
Of course, if user numbers continue to grow, it will also indirectly flow into the banking side’s growth in the longer term. In this case, those using Nordnet as a broker might also use Nordnet as a provider of housing or investment loans. In Sweden, Nordnet’s housing loans are quite viable, unlike in Finland, where they don’t seem to be even offered (from memory).
Nordnet a few days ago announced that its July share buyback program had been completed and that it would start a new program announced in connection with Q3. All acquired shares will be cancelled.
One would think Trump’s tariff shenanigans would have boosted transaction activity in the same way as the pandemic did back then. Need to dig deeper…
