Welcome to this Q3 presentation. My name is Henrik Schallen, Acting CEO of Alansa. I will start with a business update, and after this, our CFO, Birgitte Hogenfeld, will take you through the financials. The presentation will take approximately 20 minutes, and we'll open up for questions afterwards. You can also post questions to the system during the presentation to be answered afterwards.
The Q3 2016 gave an operating profit of SEK 122,000,000. It was 10% higher than in 2nd quarter, a result of higher commission income and seasonally lower costs. Compared to Q3 last year, higher other income due to success of Avanta Markets and higher fund commissions contributed positively the result increased by 13%. The stock market picked up in the quarter with 6 return index increasing by 10%. The positive market contributed to higher risk appetite among our customers who are net buyers in the stock market and increased their share of equity funds and mixed funds.
Also, the share of foreign equity trading increased somewhat, which affected FX income positively. Corporate transactions were at normal seasonal low in 3rd quarter, but we are expected to but we think they are expected to increase later in the year if the investment climate remains. Our work on digitization and internal efficiencies have continued with, for example, improved handling of ISK transfers and by optimizing our fund flows. This has resulted in a strengthened cost position. The cost to savings capital decreased from 25 basis points to 21 basis points compared with the 9 month period last year.
This resulted in an operating margin for the 1st 9 months of 52%, which shows strength in the low in this low rate climate. Together with our strong cost position, this gives us room for further investments. We see plenty of opportunities in the market due to the changing customer behavior, increased digitization and new regulation coming. All in all, these play in our advantage and open up for new possibilities for us to further strengthen AvanSAT's position in Sweden. Therefore, we will invest in more resources and are guiding for higher costs during 2017 with a cost increase of 15% to 20% compared to 2016.
Thereafter, we will return to an annual cost growth of 8% percent to 10%. Our estimated growth for 2016 of 8% to 10% remains. During the year, we have upgraded our customer offering further, which together with our existing offering and our strong brand attracted 24,500 new customers in the Q3. During the year, as many as 73,700 individual savers chose Avanza, and already in Q2 we exceeded our customer growth targets. Altogether, our customers generated a net inflow of close to $6,000,000,000 in the Q3 and the saving capital now totals to $223,000,000,000 The portfolio generator by the end of the quarter attracted $1,300,000,000 in fund capital, an increase of 30% from second quarter.
This shows we are on the right track and encourage us to continue to develop this decision making tools. Since our business model is built on scalability, customer growth and growth in saving capital is very important, making customer satisfaction one of our key priorities. During the year, we have launched 1800 improvements in our channel, of which a large part as a direct consequence of our customers' feedback. We have done several improvements to user experience to make our digital tools easier to use and making them more intuitive. Therefore, I'm very happy that our customer satisfaction has increased further to an NPS of 70 compared with 68 for 2015.
NPS or Net Promoter Score also called as known as Ambassador Index shows our customers' recommendation rates and a result over 50 is extremely good. The vast majority of our new customers come on recommendation from other Advanta customers, which shows the strength in our brand and the importance of innovative product development and improvements. Avanstas market share in terms of number of transactions on the Stockholm Stock Exchange and First North, the 3rd quarter was record high at 15.2%, up from 13% in the 2nd quarter and from 10.8% in the 3rd quarter last year. This is a result of strong customer growth. Also, the market chain in terms of turnover was up to 7.5%.
The overall activity on the stock on stock exchange and First North measured in turnover was down by 15% compared with the Q3 last year. In terms of trades, activity rose by 4%. Turnover at Avanta, however, was only down 5% and trading activity accounted as number of trades rose by as much as 47%. The increased trading activity is a result of strong growth in number of commission generating customers. However, the average transaction size has gone down and also income per commission notes.
This is in line with our price leading strategy and also a result of our customer base getting younger and the more and that more customer trade in lower brokerage classes. However, looking at our customers' activity and the number of commission notes per customer, this shows a positive trend. Also brokerage commission income is on high levels, although it has fallen from the extraordinary high levels at year end. This proves our business model, which is designed to give our customer a better, easier and less expensive offering than others and thereby attract more customers and increase revenues. So even though we have seen and also contributed to price pressure in the stock market, our growing customer base and our customers' trading activity are increasing total brokerage income.
Attracting new customers was the aim with both the launch of our new price plan in Q4 'fourteen and with the start for commission free trading in May this year. Start should be seen as an entry product and Avanta 0 for equity trading. Avanza 0's customer had 90% of the savings capital in other revenue generating products. And in 3rd quarter, 70% of our start customers were commission generated. As already mentioned, both customer inflow and inflow of savings capital was strong in the quarter.
Net inflow in 2016 is even ahead of last year's record inflow, up 5%. However, after last quarter's record inflow boosted by inflow from Remium of SEK 2,200,000,000 we saw a decrease of 37% in 3rd quarter. During the quarter, most of the inflow came from new customers. Customer growth was 20% higher than in Q3 last year and up 6% from 2nd quarter. Looking at the customer base, we continue to attract a larger number of younger people, which is shown by the red line in this graph.
As we see savings capital grow substantially with age, we see great potential in our customer base. We divide savers into 3 different groups: Do It Myself Investors, Help Me Do It Investors and Do It For Me Investors. To increase growth pace and to attract broader customer groups with younger savers as well as those who want and need more support, We will continue to improve our mobile offering and further develop digital decision support tools. Today, we have a market share of 3% of the savings market, but looking at the entire Swedish population, our market share is 5.4%. Our market share has grown steady during the years, and in the light of coming regulation and new customer behavior, we see an opportunity to grow faster.
This is also important in the light of increased competition from new fintech players. Looking at customer behavior and choice of device, the visits from mobile devices to Avansta's platform have increased during the last 3 years, but without cannibalizing on the visit from desktop. This clearly shows the importance of a high customer experience in all devices and encourage us to hurry up the innovation pace. This slide shows our new product launches during the years and the growth in savings capital and number of active customers. As you can see, customer growth picked up from 2013, which is when we launched our new platform, and our product offering development took off again.
These product offerings are of different nature and range from price reductions to more innovative launches. Important when it comes to new products is, it's not only to attract new and broader customer groups, but also to maintain satisfaction among our core and more trading enhancing customers, the do it myself customers. To speed up growth and to make sure we keep momentum, we will increase our efforts, especially when it comes to user experience. Avanti is bursting with innovation and the many ways we want to improve our offering. Our business model is built to attract customers by giving them more money left in their pockets with us than with any other bank due to low fees and better tools.
That's how we build customer value and growth for a sustainable business. In the long run, a highly competitive cost saving capital ratio is tremendously important for our ability to maintain price leadership while maintaining high profitability in any market condition. We strive for a cost position where it's hard for others to follow. This is also shown in the resilience of our operating margin, which was 52% for the 1st 9 months, a slightly decrease from 53% from last year. To sum this up, we see a lot of opportunities going forward and to maintain growth momentum and our strong competitive position, we are focusing on 3 specific areas going forward.
1st, attracting new customer groups, including junkie savers and those who require support. 2nd, maintaining our core customers happy. And third, further increased scalability in our business and continue to strengthen our cost leadership. To achieve this, we need to focus on a number of core activities to keep up growth momentum. These activities will revolve around developing our product offering with new user friendly innovative products and to make our revenues more resilient to different market conditions, where increased growth in our pension business is one example.
The upcoming regulatory changes with MiFID II and other regulations will make it increasingly more expensive for the incumbent banks to offer financial advisory service in the coming years. While at the same time the price sensitivity among the retail segment becomes clearer. Consequently, we believe growing part of the retail market will be forced into digital services for their savings investments. This is a great opportunity for us to capture growth over the coming years. We will therefore further improve and simplify our digital experience including our mobile solutions for both Android and iOS.
Platform evolution is, as always, ongoing with regular improvements every 9th day. In the light of income pressure and higher costs due to regulation, together with Our internal efficiencies efficiency projects to increase scalability is vital. Therefore, we are continuously increasing scalability by searching for efficiencies measures in our processes, improve stability and quality as well as reduce operational risks. Our aim is to automate as many internal processes as possible to get closer to 100 percent digital. This, together with further growth, will continue to decrease the cost to savings capital ratio from current 21 bps and making us reach our long term target below 20 bps, despite increased investments guided for in 2017.
A prerequisite for all these activities are engaged colleagues that feel they contribute to something meaningful and enjoy coming to work. Overall, this will contribute to create customer value and to maintain and enhance our industry leading customer satisfaction. This also keeps customer talking about Avanza and recommend us to their friends and families, creating growth and shareholder value long term. Thank you. Now, Birgitte will take you through the more detailed financials.
Thank you, Henrik. Operating profit increased slightly by 1% compared with the 9 month period last year, giving an operating margin of 52%. Operating income increased by 3% compared to the last year, driven by higher income from Avanxomarket. Avanxomarket was launched last summer for commission free ETP trading and are trading on both MDX and OMX. This has been a very successful launch and Avanza Markets accounted for 61% of the total turnover on the EGP market during the 9 month period and 67% in Q3.
Operating expenses were up 5% year on year, mainly due to increased stock costs. Costs to savings capital ratio for the 9 month period decreased to 21 basis points, which strengthens our competitiveness further. Altogether, it gives us earnings per share of DKK10.06 for the period, a decrease of 1% year on year. Total revenues for the 3rd quarter increased year on year by 9% to 220,000,000 dollars and decreased by 2% quarter on quarter. Quarterly brokerage income was stable year on year and rose by 3% compared to the 2nd quarter.
The number of stock transactions increased by 43% year on year and the number of commission generating customers rose by 30%. At the same time, the size of the transactions was smaller. Taken together, this means that our that more customers are trading equities, but at lower volumes and in lower brokerage fee classes, more suited to their trading patterns. The repo rate cut in February, coupled with lower mortgage rates in the 2nd quarter, kept pressure on net interest income that were down 12% year on year. The repo rate was on an average 16 basis points lower during Q3 'sixteen compared to the same period last year.
And STIBOR 3 months showed the same trend and was on an average 27 basis points lower year on year. All else equal, disregarding changes in customer behavior, a 1 percentage point interest rate change would, at current volumes, imply an effect on net interest income of about SEK 180,000,000 to SEK 220,000,000. During the quarter, the customers took on more risk and invested further in investment funds. Along with the positive market, this resulted in 18% higher from commissions year on year. This is also the result of mix effects where our customers have invested a larger proportion in funds with higher fees.
Other income increased year on year by 58%, mainly due to higher market share in the ETP markets, but also due to customers trading more on the foreign stock markets, leading to increased fixed income FX income. Advanced Markets part of other income amounted to 36%. Corporate Finance income was on seasonally low levels. Compared to the 2nd quarter, other income decreased by 24%, mainly due to corporate finance. Total operating expenses in the 3rd quarter increased by 4% year on year to $98,000,000 but decreased quarter on quarter by 13%.
Personnel costs, the dark green line, increased by 6% year on year. This increase is, as mentioned earlier, mainly due to the 16%, which is a seasonal effect due to summer vacations. Marketing expenses, depreciation and other costs are at about the same level as last year and compared to the 2nd quarter. The operating expenses for the 9 month period increased compared to last year 5%. And our cost guidance for 2016 remains with an increase by 8% to 10% compared to 15%, which means that the operating costs for the last quarter will increase by close to 20% compared to Q4 2015.
As Henrik already mentioned, expenses are expected to rise in 2017 at a rate of 15% to 20% before returning to the rate of 8% to 10% per year. This is due to increased efforts to further improve growth pace. The cost increase in 2017 will affect personnel costs as well as IT costs and other costs as our efforts going forward, for example, will include larger premises and increased IT development. Operating profit in the 3rd quarter increased by 13% year on year. Compared to the Q2, the profit increased by 10% due to lower costs.
The operating margin was 55% for the quarter. And for the 9 month period, the operating margins was 52%, which is slightly lower than the average level during 2015 on 54%, a result of further investments in growth, the market environment and the broader customer base with younger customers. Profit after tax in the 3rd quarter increased year on year by 13% and increased by 12% compared to Q2. The income per savings capital for the 9 month period was 45 basis points, a decrease of 9 basis points compared to the corresponding period 15, which is in line with our business model and overall strategy to attract more customers and more savings capital. Income per savings capital for the quarter was 42 basis points.
The cost per savings capital decreased by 4 basis points year to year to 21 to be compared with 25 at year end and 23 in Q2. Cost per savings capital for the quarter was 19, a decrease by 4 basis points compared to Q3 last year. Given continued strong growth in customer and savings capital, we still see good opportunities to lower the cost to savings capital ratio below 20 basis points in a few years, even though we increased our cost guidance. Lending is still on low levels in spite of increased stock market activity, even though total lending was up 14% during the quarter and 15% since year end and amounted to SEK 7,500,000,000 Margin lending was up 9% during the quarter to SEK 3,900,000,000 and is amounting to 1.8 percent of total savings capital. We see a great demand for our mortgage loan offering, and mortgage lending has was up 19% during the quarter to $3,300,000,000 In the quarter, we extended the lending ceiling further with another $500,000,000 to $4,500,000,000 to meet customers' demand.
Deposits, including external accounts, decreased by 1% in Q3 to $34,500,000,000 but has since year end increased by 14%. Deposits stood for 15.5 percent of total savings capital by the end of September compared to 17.8 percent at the end of June, which is 2 percentage points lower as a result of our customers' increased risk willingness to invest in stocks and mutual funds. As a result, our capital bond portfolio decreased by 2% to $13,500,000,000 during the quarter. However, since year end, it has increased by 12%. The total catheter ratio in the consolidated situation was 19.5% compared to the requirement, including buffers, of 12%.
In June, the contracyclical buffer rose from 1% to 1.5%. The liquidity coverage ratio was 4.34 the end of the period compared to the requirements of 0.7. This strong capital situation entitled us to keep on growing also in a quicker pace. Our dividend policy to distribute at least 70% of the net profit to our shareholders remain. And there Henrik, I think we could turn over to questions.
Yes. Thank you.
Thank you. We have our first question from Peter Mallon of Handelsbanken. Please go ahead sir. Your line is open.
Great. Thank you and good morning. I would like to start with process? And is it reasonable to assume that's like the steep cost growth you're guiding for in Q4 is sort of like the initiation of these investments?
Yes. As you can
say that we are starting at and as you know, we have already added a lot of IT development personnel and so forth. So yes, you see a start in the Q4 and going on into next year.
Okay. And how so like how well defined is this investment in terms of how confident are you that so like the guided cost range as well as the timing of this being more or less completed than the 2017 investment phase that, that will actually be the case?
Well, I wouldn't say that the investments will be completed during 'seventeen because what we are doing is adding a lot of additional personnel that we continue to deliver even in 'eighteen. So this is a start where we accelerate the growth pace, and we believe that we will deliver a lot of interesting things already in 'seventeen.
Okay. And how sort of like the investment process here? I mean, is this how flexible is it in the sense that if the markets were to like turn, take a downshift and so like your income momentum would slow down more than expected, would you then select change the investment process, maybe slow it down a bit and take it over a longer period? Or is this like an investment you need? Do you think you should do it a lot of competitive for competitive reasons regardless?
We think that we will do this regardless of the market conditions. But having that said, we could also decide during the way to slow it down or even at the on the other way around. But of course, we could make decisions during the way that could change this. But this is not an investment that we are doing due to the market conditions. It's a long term investment.
Yes. This is to keep our momentum in our growth pace that we've been seeing during this year and before also and to accelerate this our position in the Swedish market. We've been working with our strategy going forward and the possibilities that we see ahead quite a long time now. And now we have put down the numbers so everybody can know what we are going on, what it's going cost. And we are here for the long term.
Yes. Okay. And then if you could give some information about sort of like the positive development for sort of like the digital advisory or digital support services that you've launched so far? What kind of clients are using these services? And are there any specific characteristics to these kind of clients in terms of well, I guess anything that stands out?
Okay. Good question. As I Having said that, do and do it for me investors, Having said that, do it for me investor can also be a do it myself investor depending on what kind of savings they are looking at. For example, the pension savings, a customer that normally do the savings themselves don't necessarily have to do that with their pension savings. So saying that with digital decision tools that we have offered for the portfolio generator can be used by all of our clients.
But we see also demand from new customer groups coming in that they need more help going to start at Avanza. So it's both for both groups, so to say.
Okay. Thank you. And then just a final question before I leave to the next person
would be
so like now we've had a very strong market recovery and generally there's a much more positive sentiment and inflow. Is it reasonable to assume that unlike the trend we've seen of like lower transaction values and well smaller ticket size as an average that this trend could sort of like turn for the better if this positive momentum and market development stays?
What we see is that we have record high customer generating commission, but it's the income per commission note is lower. This is due to our growth in younger customers and also that we have changed our price plans. But if you look at our total customer base and savings capital growth with H, we believe that their savings capital will grow with H and also the trade they do in the stock on the stock exchanges long term. But if we which we think will continue to grow in with younger people and those who need some more support and so on, it's probably going to be on this level, maybe a little bit lower.
Okay, great. Thank you.
Thank you.
Thank you. And our next question comes from Mon Hanfeld of SEB. Please go ahead. Your line is open.
Hi, thank you. And thank you for the presentation. So just following up on the investment and cost guidance. How do you see this increased cost gain distributed over? Will there be a tilt toward increased personnel costs or mainly IT developments?
Well, the cost will increase in different parts of our P and L. So it will be both personnel costs, it will be IT costs and other costs as well. So this is not only due to more employees.
Okay. But we should see an increase in the number of employees that's larger than history? Okay.
Yes.
And then a question on the competition. I'm just wondering how you perceive the competitive landscape now that Swedbank will initiate a venture with Sprinkle Bets?
Well, so far, we don't have seen any competition from that bank. But of course, as we said, it's the market is more competitive now than before, which we think is good because that means that we need to be even better to get our customers. We like competition.
Okay. And then a bit more nifty, but on Page 5, you had a graph on the brokerage generating customers compared to the notes per customers. And we can see that the brokerage generating customers are growing on trend, but there has been a decoupling correlation in the recent quarters where notes per customer has decreased. Do you have any explanations for this?
Could you please take that question again?
Yes. So you can see that notes per customer and the book to generate customers has been growing exactly on Page 5, has been growing has been rather correlated. And you can see there's been a decoupling from this correlation in the recent quarters. Do you have no one in fact to explain this?
Yes. We had extraordinary high trading activity during last quarter 'fifteen and Q1 'sixteen. And that was the, when you say, biometric stocks that was highly traded then. So I think that's why.
All right. So the fingerprint factor?
Yes.
Okay. Thank you.
Thank you. And our next question comes from Petr Kessiakov of SVB. Please go ahead, sir. Your line is open.
Yes. Hi, Peter Kesiakov from SEV. Okay. It was not my intention to take the questions right after Monica, but just a follow-up question from what she asked. Just in terms of the customers where you're growing, you're saying that you're now growing going forward in customers that need more help or that want you to help them fully.
Does that mean that we should expect that the cost that you need to invest for every new customer that you gain going forward will be more expensive than in the past? Is that one of the reasons why you need to do these investments? That's my first question.
Yes. And my answer on that is no. We don't think it's going to cost more to get these kind of customers into Avanti. It's the same. 7 out of 10 new customers come through recommendation, and we're going to continue to work with that and continue to have a very high net promoter score and good service and good product.
So it's going to be the same, I guess, I think.
Okay. And then just in terms of you mentioned that you want to see more stable revenues and pensions were one example. Could you give any other examples where you would want to increase your exposure so that the income becomes more stable over time?
As always, we will inform the market when we launch new products. We never do that ahead. So we'll be looking into a lot of different areas. And when we're going to launch them, we're going to inform the market.
And are these new investments that we should expect to see, say, during the second half of twenty seventeen? Or is it will it be fairly evenly distributed over 20 17? Or how should we look at that?
We never say when we're going to launch or no. So when we have the new products or features ready, we're going to need from the market.
Okay. Fair enough. Then just in terms of the impact from higher interest rates, you mentioned that, well, 100 basis points higher interest rates in Sweden would improve your NII quite significantly. But I think over time, you said that you want to have an operating margin around 50%, implying that if you, of course, see higher net interest income from higher rates, you will invest more. Is that the way we should look at it over the longer term as well?
Well, at least it means that we could invest more and that we have the opportunity to look over our either our price plans or our costs or our investments. So it gives us the opportunity to make decisions on what path to chose.
Okay. But simply expecting those that impact to fall straight down onto the operating profit is not a fair assumption given how you comment around margins over time?
Well, that's quite hard to say because I mean, what we are trying to do is deliver on our promise more to you, less to the bank. And having a too high margin doesn't really rhyme with that profit. So I would say that we never will deliver a higher profit margin than so, but at least it will give us the opportunity to rather continue to grow and to increase our efforts on the growth instead.
Okay. Then just one last question in terms of the mutual funds where you saw a good income uptick during this quarter. And I think if you calculate the average margin that you saw on your mutual funds, it was 34 basis points on an annualized basis in this quarter, which is up from roughly 32 basis points seen in the last couple of quarters. Is there anything in particular in this? Or can we expect a similar level going forward?
Or should we see a small decline? What's how would you view the margin there?
What we've seen this quarter is that the risk willingness by our customers has gone up some, meaning that we've seen that the customers that saves in funds choose more stock funds and mixed funds compared to Q2. Also, we see a good inflow in the fund capital coming from the pension business, but also from our other customers. So going forward, that's very hard to say, but we see a higher risk willingness now in our customer base. Also seeing that when they are trading more stocks and also in foreign exchanges, seeing that the FX income has gone up also. So is it in turn?
I don't know, but that's what we see right now.
And you can
see that our customers are acting pretty fast when the market condition changes. So I mean, this increase is due to both more risk willingness and but also due to the market going up. So we can see pretty quick how our customers changes when the market condition changes.
Okay. Then just one final question. You mentioned that your the income per trade that you earn on the younger customers, which is where you're growing the fastest currently is lower than the average. Could you say anything about how much less you're earning on the younger customers than you are on the average? I mean, taking for instance that you now are growing the faucets within those that are around 25 years old.
Just what kind of what's the average commission that you earn on trades on them, for instance?
Well, we don't calculate income per year or what age our customers have. But what we can see is younger customers usually have less capital, which means that they usually chose one of our price plans, start or mini as the first entry product. But as we have said in the report, we can also see that these younger customers or those who actually chosen Starks is not only trading on the stock on stock exchange, so they are still generating commission from other trades. So I believe they are I mean, they are more younger people chose the start of the mini price plan.
Okay. Thank you.
Thank you. And our next question comes from Nicholas Mabik of BNP. Please go ahead. Your line is open.
Hi, and congratulations to a strong quarter. I think it was very encouraging to see the strong customer growth sustained in Q3. I think the net inflows on the back of the strong customer growth could have been somewhat higher. And you mentioned that most of the net savings came from new customers. Do you see any potential to increase net savings from existing customers here over the coming quarters?
That's my first question.
Absolutely. And as we said in the webcast, we have 3 focus areas. One of them is to maintain our core investors happy. So going forward, we're going to work with products and services for both new customers new customer groups and also for our existing customers. In this volatile market, we have seen before that existing customers' net inflow fluctuates over years.
And also, we've seen that the share of deposit on the Swedish savings markets have been growing during the last years, which and then our existing customers usually not put in more money in when it's quite turbulent. They stay on their seller account, sales account. And so it's fluctuates quite a lot between new customers and existing customers netting. So but we think over time, it's going to be average fifty-fifty.
So you would assume that if markets become more stable here in Q4 and maybe also into next year that the net savings from existing customers will increase. Is that your expectation?
Yes.
Okay. And then on the cost growth again for 2017, it seems like the cost guidance you gave last time in Q2, that also kind of should enable investments in innovation and new product offering and user experience. Can you say something about what has changed since the end of Q2 when you got it for cost growth of 8% to 10%?
Well, if I start, we've been seeing during the quarter and the last two quarters that what we have done, what we have developed in product offering and services has been very positive taken from our customers. For example, the portfolio generator was growing 30% since the Q2 and also what we've done on the mobile offering, seeing that 60% of the customers who come to us uses mobile devices. These are things that we have followed for a time, quite time and now we see that we have strong momentum and a great potential going forward. Therefore, we see the possibility now to speed up our growth pace. So we've been following this for quite time and we've also done quite large strategy work during the year and now we see a great potential going forward.
Therefore, we have guided for this for 2017.
Okay. And then on Advanced Markets, I think Birgitte mentioned how much Advanced Markets contributed to of the other income. Could you just confirm or repeat that number? And also say something about the outlook for further growth in revenues from Avanthal Markets?
Well, Avanthal Markets was 36% of the other income for the Q3. But then you should remember that Corporate Finance revenues were very low this quarter. I would say that Avanto market started in the end of Q2 2015 at very low levels, which means that compared to last year, the growth is significant. And about the market did grow very fast for the 1st 6 months or 1st 9 months. So I wouldn't expect it
to have
growth compared to the last quarter, but it will still continue to grow compared to last year.
Okay. Thank you. And then my last question, a bit more specific on the net interest income. It fell a bit further here in the Q3, I suppose, because of the lower interest rates. If we assume that interest rates or market rates would remain at current levels, could you give us a bit of insight on the outlook for net interest income for the Q4, also assuming that deposit volumes and the size of the liquidity portfolio would be roughly at the same levels as they were by the end of the Q3.
Yes, I mean, really, if the fall in interest rates have been reflected in the NII in the 3rd quarter, if there should be some more pressure?
Well, if you compare we'll compare it to this quarter. So I would say that there won't be any more pressure since the interest rate level has been the same about the same Q3 as I mean, if you that's what you expect for the next quarter. What we will see though is that our lending has gone up during the Q3, which hasn't gone through the P and L fully. So you probably would see an increase in interest income from our lending portfolio.
Okay. That's all my questions. Thank you.
Thank you. Thank you.
Thank you. There are no further questions at this time. Please go ahead, speakers. Okay. Thank you very much for listening in.
And I hope
you get the information, so you understand Alansa going forward.
Thank you and goodbye.