Hey people, and welcome to this presentation of the new Nordnet Q2 interim report. I believe we can report a reasonably good quarter. We see a steady and healthy growth on our drivers, good on new active customers, okay in net savings, and really good in lending, though operating income is down and hence profit after tax is down, which we of course are not happy with. Next slide, please. As I said, operating income is down for the quarter by 1%, and since we have taken up costs from Q2 2015, that gives a consequence of profit after tax down 20%. If we look on the half year though, operating income decreased by 5%, and if you do the math, then Q2 is relatively better than Q1 compared to 2015. Next slide, please. Some highlights from the quarter.
We launched mortgage in Sweden and with the lowest, at that point in time, the lowest interest rate at 79 basis points. That has been well-received, and year to date, we have paid out approximately SEK 250 million. We have again, in Denmark, been appointed Stock Broker of the Year by Dansk Aktionærforening, and also best in test by Tænk Penge Magasin. We see, as I said, strong growth in lending. Volume is up 23% in 12 months. Of course, we are especially happy with that given the low interest environment. You've heard me say that every SEK, NOK, DKK or euro we can lend gives us a better return than having them in the treasury portfolio. We start to see some leverage of the volume growth.
If you look back on the quarters, previously the volume growth has been offset by lower and lower interest, now we can see that we get some leverage in the revenues of the volume growth, which is really good. We have also introduced a get started account in the Swedish market with free trading for new savers, an initiative to lower the thresholds for Swedes to enter the savings markets, and of course, a way to stimulate growth in new active customers for us. Next slide, please. Next slide again. Let's talk about customers and accounts. On a company level, we see a 12-month growth in customers of 13%.
Still, Denmark is the star in the growth in customers with 32%, followed by Norway and Finland, both on 14%, and Sweden by 9%, which is actually 50% better than we experienced in Sweden in Q2 2015, which is really good. Our efforts are starting to pay off in Sweden also. We also see an effect on two initiatives that we are carrying out right now. We're rebuilding the onboarding new customer process for all markets with the aim of increasing conversion rates. We are also in the midst of implementing more real-time money transfers, giving our customers the opportunity to, in real time, transfer money from their other banks into their Nordnet accounts. We're in the test phase right now, and that will be launched during summer. Next slide, please. Another driver, as you know, is net savings.
We experience a total now on company level of 6%. In Sweden, it's actually negative due to the outflow from the Söderberg & Partnesr decreased partnership. Norway, we have 18% growth in net savings, Denmark in the lead of 26%, Finland actually is not surprisingly, but better than we have experienced the previous years with a growth level of 4%. If we adjust for the outflow on the Söderberg partnership, we have a company-level growth on net savings of 9%, which is okay. We know we can do better, but given the circumstances, okay. Next slide, please. Activity in the quarter is lower than Q1, but still good and quite significantly higher than Q2 2015. It's actually 23% up. Though, as you can see on the right-hand side of the slide, traded value is only up 4%.
This reflects the change in trading pattern we already spoke about in Q1, with customers doing smaller trades. This is partly driven by our price model change in the Swedish market in the mid of 2015, but also more cautious behaviors as we see this pattern in all four markets. Jacob will elaborate more on this later in the presentation. Next slide, please. Lending, we're really happy about healthy growth in our existing credit products. Margin lending and personal loans, roughly up year-on-year, 20% on both. Margin lending is down from Q1, but has held up good given the market conditions. Starting this quarter, we now report on mortgage and as I said, roughly SEK 250 million paid out. Next slide, please. With that, I hand over to Jacob.
Thank you, Håkan. Get the next slide please, operator. We'll look at the revenues, and we'll start out by looking at the trends by quarter. Revenues for the second quarter totals SEK 293 and a half million. That's 2% lower than Q1 and 1% lower than the same period last year. Let's go through the main components of our revenue. The blue part of the bar, net interest income, shows a stable development, slightly higher than the previous quarter. The trends within NII are very similar to what we've seen in the past, meaning healthy volume growth, but mostly offset by lower interest rates. Our volume growth year-on-year in both personal loans and margin lending, as Håkan just mentioned, is around 20% and which we're very happy with. Rates, however, are lower in both products, and it's both a consequence of lower rates in the market in general.
In the case of personal loans, it's also due to us growing fastest in the lower risk tiers where prices are lower. Our mortgage product that was launched in Sweden during the quarter had a good start. Almost SEK 250 million paid out, and the pipeline of applications also looks very good. Its effect on net interest income in the quarter is small, but we expect mortgages to contribute as we move forward. Next part, the gray part of the bar, net commission, totals SEK 138 million. That includes SEK 29 million in commission on mutual funds. That's slightly down from Q1 and down 20% compared to the same quarter last year. Main reason for the lower level compared to Q2 2015 is the lower market valuations affecting savings capital in mutual funds on the platform.
Transaction-related commission income in Q2 totals almost SEK 109 million, which includes SEK 6 million related to fee sharing from the Danish CSD for the first six months of this year. We received this fee for the first time in December of last year, we are now part of the system and understand it better, we will accrue this item monthly as part of our other CSD fees, so it will be included in transaction revenue. Ultimately, it's dependent on the number of transactions we process, but right now our estimate is that it will be around SEK 800,000-SEK 900,000 per month, so just below SEK 1 million per month going forward. It will be part of our running business. Adjusting for this item since it was not part of Q1 and comparing Q2 to Q1 of this year, we see transaction-related commission down by 16%.
As you saw in an earlier slide, activity is lower in Q2 compared to Q1. Number of trades and traded value are both down around 8%. Commission per trade is down from SEK 21 per trade in Q1 to SEK 19 in Q2. Again, adjusting for the CSD fees in Q2. We continue to see a shift compared to last year with customers trading smaller ticket sizes. From Q1 to Q2 of this year, the main reason for the drop in commission per trade is the business mix between countries. Commission per trade right now is highest in Finland and Denmark, while Norway is lower and Sweden is the lowest of the four countries. This follows the change in price plan that was made last year.
During this quarter, we have seen an increase in the share of total Nordnet trading from Sweden and Norway, that affects the average commission per trade for the group. In the quarter, we launched a new offer in Sweden aimed at savers just getting started with their savings, as Håkan just mentioned. These free trades explain EUR 10-EUR 20 of the drop in net commission per trade. Some impact from that, but still limited. To sum up the development on commission fees, year-on-year, we're affected by lower prices in Sweden and the smaller trade size across all markets, while quarter-on-quarter comparing Q1 to Q2, the mix between countries is a more significant part of the explanation. Other revenue mainly includes the result of FX transactions when customers trade outside their home markets. Roughly level with the previous quarter despite lower volumes.
The Brexit decision on midsummer when Stockholm was closed and Copenhagen and Oslo were open, that boosted foreign trading somewhat, but still, apart from that event, fairly good quarter for FX. Included in our other revenue is a delayed positive effect from the closing of our debit card offering a few years back. As part of closing that product, we redeemed our shares in Mastercard, which has given a capital gain of roughly SEK 5 million. That's included in other income in this quarter. That sums up revenues. If we move to the next slide, please. Expenses or costs and expenses, including credit losses amount to SEK 207 million for the quarter. It's an increase of SEK 11 million year-on-year, but slightly lower than the previous quarter. Given the market conditions and the weaker top-line development, we are taking a much more cautious approach on the cost side.
Looking at the next three to four quarters, we aim to maintain or reduce expenses from the level in Q2. Year-on-year, the increase in cost base is mainly related to investment in IT and product development. Long-term investments that we believe are important to maintaining and improving on our long-term drivers of growth. Given the situation right now, we're definitely reluctant to take on more costs. To be clear, our guidance for the calendar year 2016 remains 6%-8% increase from 2015, we're definitely aiming in the lower part of that range. From the level where we're at right now and going forward, we're looking to maintain or decrease on the cost base. A slight shift there, even though the effect for 2016 is within the guidance that we've previously given. All right, moving to the next slide.
Operating profit sums up the two previous slides. For the quarter, operating profit is SEK 87 million, lower by 14% compared to the same period last year, and down from the previous quarter by 3%. We'll go to the next slide. This slide shows our business across the four markets. There's no dramatic shift in this quarter when it comes to the business mix. Still roughly 50% of our business comes from Norway, Denmark, and Finland, and more than half of Nordnet's customers reside outside of Sweden. Looking at the operating profit, the share from Denmark, Norway, and Finland is increasing for 2016. So far, year-to-date, the three countries make up 44%, and that's more than double the ratio of two years ago. It was 19% in 2014. We'll go to the next slide for a closer look at the income statement compared to the same period last year.
Next slide shows income statement. Revenues for the three-month period, April to June, this year are 1% lower, as we saw in the previous slide. Also in this slide you see, compared to the same period, a fairly stable NII, with commission income clearly lower. While number of trades are up, traded value is more or less unchanged and commission levels are lower. That's the story there. Moving down to operating expenses, we see that there's an 8% increase compared to the same period last year. Increase lies mainly within general administrative expenses, which includes personnel, and within other operating expenses, which includes marketing. Next is credit losses. They are all related to our personal loans business. Credit loss amounts to SEK 6.3 million. It's a really good level given that we continue to grow our portfolio.
Our loss rate is now as low as 1.2%, 1.3%. I think Q2 is exceptionally low on credit losses, we are growing in the lower risk tiers, as we said earlier, and that will also affect losses. Looking ahead, while SEK 6 million is low, I don't expect losses to come back to the around SEK 12 million that we had the same period last year. Tax rate for the fourth quarter is 21%. That's SEK 18.4 million. Profit for the period, SEK 68.5, leading to an EPS of SEK 0.39 for the quarter and a rolling 12-month period EPS of SEK 1.74. Moving on to the next slide. Just a quick look at the balance sheet. Total assets have increased since one year ago to SEK 65.9 billion. This increase in assets is mainly a consequence of deposits increasing.
Also increasing are assets and liabilities where policyholders bear the risk. That's asset in our pension insurance products. The increase in deposits have mainly affected financial assets available for sale. That is our liquidity portfolio. Also, loans to the public increase since the end of Q2 last year. For the loan shareholders, equity amounts to SEK 1 billion, 822 million, and that brings us to the next slide for a look at our capital situation. Go to the next slide, please. We focus here on the consolidated situation for Capital Requirements Regulation. That is where the CRR regulation with buffers primarily affect us. Starting from the top, our capital base is made up of shareholders' equity with the usual items deducted. We have no subordinated debt at this time. The loan we did have one year ago has since been bought back.
Still, capital base has increased compared to last year and amounts to SEK 1 billion, 174 million at the end of the period. Risk exposure amounts for credit risk are lower compared to one year ago. Part of this is due to different composition in our liquidity portfolio, but we have also during the quarter reviewed and corrected some of our mitigations within our credit risk framework, which also has reduced the risk exposure amounts somewhat. Market risk a little higher. Operational risk compared to last year, also higher, and that's since we used the basic method, which is based on our three-year average revenues. Our 2015 revenues are higher than our 2012 revenues. That's the reason for the increase year-on-year in operational risk.
All that gives us a total capital ratio of 16.2%, just above the range of 14%-16% that we have communicated as a target for our capital ratio. That was the end of my prepared comments. I'll hand back to Håkan for a wrap-up, and we'll take your questions after that. Håkan, back to you.
Good. Thank you very much, Jacob. Next slide, please. Let's talk about what's next at Nordnet. Another next slide, please. Nordnet is about growth, and we have the ambition to grow in all markets and on all our drivers, including lending. We will continue to focus on lending. In Sweden, we have an outstanding loan offering with personal loans, mortgage, and the Knockout loan, our margin lending product. A product that we have in all four markets, and now our customers can have that in SEK, NOK, DKK, and EUR, which is an outstanding offering. We will continue to think if we can build out our loan offerings in the other markets. Lending will be a focus area for us going forward.
As Jacob said, we will maintain or even lower our cost level going forward from the level that we have presented this quarter. We will continue to execute on our growth strategy, super happy customers, to increase brand awareness, and to innovate, i.e. to come out with good things for our customers at a high pace. That includes also to continuing our initiative we call Nordnet Ventures, which aims at finding partnerships and also making possible to invest in fintech startups. As we have spoken about previously, now we have built out our product portfolio, which is really strong. We will now also put more resources into enhancing our customers' experience on our website. With that, we conclude the presentation, and we open up for questions.
Yeah, ladies and gentlemen, if you have a question for the speakers, please press zero one on your telephone keypad. We have our first question from Peter Wallin from Handelsbanken. Please go ahead.
Yes, thank you and good morning.
Peter.
I would like to-
Thank you, Peter.
Hey. To start with the cost guidance, if you could elaborate a bit on what kind of actions or investments that you're choosing not to do right now, and also what you would need to see in terms of activity or other events in the market in order to go back to the kind of investment plan you previously had.
What we've said previously is that if the market allows and the revenue allows us, we will continue to invest in IT and product development. The market sentiment now doesn't give us that opportunity, or we believe we should be very cautious. A big part of our cost base is staff. We are cautious about external recruitments, and we're holding back on that. On IT, we will continue to fill vacancies with external recruitment. Otherwise, we are cautious. The cost reductions we will see going forward will be mainly on staff.
Okay. If you would consider the postponement or canceled investments that you're now talking about, do you think that will have any impact on your revenue potential for the coming years?
No, we don't really see that right now. If we continue to decrease over time, that can be the effect. We believe that we can do this and take down, maintain the cost level, and also reduce it somewhat without changing the strategy or changing the pace in what we do things. Of course, if we had the opportunity to invest in more IT and product development people, we could increase the pace. We believe that we can maintain the pace we have right now with maintained cost level.
Okay. Thank you for that. Coming back to the exceptionally low credit losses in this quarter, and you're saying that you're not expecting to come back to the SEK 12 million. A reasonable loan loss level assumption, would that be somewhere like 1%, 1.5% going forward compared to the 2.5% historically?
Yes, I think that's fair right now. I think, of course, with growth in the lower risk tiers, we also see lower interest rates and lower losses. I think, yes, around 1.5%. We've talked about 2%, 2.5%, but we've been significantly below that for some time, and so probably 1.5% is maybe a better number, like you said, even though we've not set the target like that for ourselves, but it's more along what we expect right now.
It is a consequence of the majority of the growth in the personal loans portfolio coming from the low-risk segments, and that also gives a lower risk in the total portfolio, of course, and as a consequence, lower credit losses.
Just a comment on what you've said previously, that there is a fierce competition in the consumer lending market, but you're still growing volumes and you're still having a better client mix. Do you think that that can continue?
Yes, I think so. I think personal loans business is an analytical game, and we are good at analytics in building response models, building scorecards with high Gini factors, discriminating risks, and also to manage the loan brokers in terms of optimizing the kind of flow that we would like to have from them. Yes, I believe we can continue that growth without taking more risk.
Okay, great. Thank you. Just the final question on brokerage or trading-related commissions. Ticket values continue down, which is, I guess, to some extent, a slight mix effect. If you just look based on experience, how quickly or how much is the average ticket value related to general sentiment and risk appetite among investors?
It's hard to say, really. If you look at the last three, four years, we actually haven't seen so much variation in the ticket value. It's hard to say. I think part of it is that the new structure of the price plan can favor smaller trades. You'd have to do more small trades. Part of it probably is like you're saying, that a reflection of risk appetite. How much that is, it's hard to say. There's no really straight answer there.
Okay, great. Thank you.
We have another question from Jack Hanser from Nordea. Please go ahead.
Hi. Good morning, guys. I have a couple of detailed questions. Firstly, if we look at your capital position, the capital ratio is strengthened in the quarter due to credit risk RWA declining in the quarter. Can you tell us a bit what is driving that?
Part of it, like I said, is the composition of the liquidity portfolio, meaning if we hold bonds or government certificates, they have lower risk weights in the portfolio. That's part of it. We also have actually made some changes to how we mitigate and just reviewed how we treat some off-balance sheet items and so forth. There's some sort of structural change in that comes in this quarter. Part is also just the setup of the liquidity portfolio. A bit of both.
Okay. Is that related to the fact that you actually have SEK 600 million with the central bank for the first time? As I can see it.
That's part of it. That's true. That's part of it.
If you plan to keep that kind of level, or can you put it anywhere else where you don't have negative interest rates?
Yes, we could. It's not that we changed our investment policy anyway. It's more the way we ended the quarter. Not a long-term change there.
Okay. The related question, can you explain how the Capital Requirements look for your mortgage loans? Because you are using the standardized model, obviously, with the 35% risk weight. You, as a difference to Avanza, you also take the savings or total assets for your clients as collateral for that kind of loan. How does it work in terms of deduction from exposure amount, et cetera, and what do you expect the average risk weight will be for your part going forward?
It's still early, of course, because the volumes is pretty limited so far, so it's hard to say. In this quarter, you could say a reduction of almost like in the 30%, 40% reduction of the amount. Instead of a 35% risk weight, you end up at maybe 20%, 25%.
All right. Perfect. Finally, I'm sorry if I missed this, can you give us any kind of indication what you plan to have in total mortgage lending by the end of this year or the end of next year, or if you have any cap on how much you would like that to be?
We haven't set really a target. What we said before is that SEK two and a half billion is well within the liquidity we have right now. We haven't set a specific target or a hard cap on it. From these levels, we're happy to grow.
All right. Thank you.
We have another question from Peter Kirsebner from Carnegie. Please go ahead, sir.
Yes. Hi, thank you. Couple of questions, and I'll start off with Norway, where you mentioned the changes in commission rates. Can you just elaborate a bit on that and to what extent that has impacted the lower commission per trade that we saw in this quarter? Yeah, I'll start off there.
I think the price model and price adjustment that we did in the Swedish market roughly one year ago. That was a very clear also adjustment, or a price decrease. The adjustment that we have made in Norway is much more a price model change, and we don't really expect to see the same effects that we haven't seen, and we don't expect to see those effects that we saw in the Swedish market.
Okay. Just moving to the consumer lending business. It's grown 10% year-to-date. Is that the growth pace that you think that you will be able to, or that you feel comfortable maintaining for, let's say, the second half of this year, maybe into 2017?
The comfort comes from us not taking any more risk. On the contrary, we see a lower risk in the total portfolio as a consequence of us growing the lower risk, the majority of the growth coming from the lower risk segment. If that continues, we are comfortable. Again, things can happen in the market, but our ambition remains to create double-digit growth also in the personal loans business.
Okay. Just as you mentioned, you will focus more on lending going forward, and if I understand, offer new loan products in the other markets. Could that, for instance, be offering personal loans in the other markets as well? Do you have that kind of liquidity, or excess liquidity that you're able to offer those lending products in your other Nordic markets?
Yes, we do. It differs from the different markets actually, both in terms of the prereqs, in terms of all the conditions in which you can operate a personal loans business. As you know, a very important prereq is availability to information, which about the individuals, which is best in Sweden, worst in Denmark, but reasonably or decent in Norway and Finland. Also given the deposit situation, we have a lot of euros, and it's really hard to get return on our euro investments. In that sense, if I would choose a market, that would be Finland. We're exploring, but we're constantly exploring opportunities in all four markets.
On that question, I'll follow up on that. When you started off your personal loans business that you have now, you acquired Konsumentkredit in Sweden a couple of years ago. Is that the way you would start offering personal loans in Finland or in Norway as well through an acquisition of an established company? Or would you start with the greenfield operations?
We don't rule any alternative out, if you ask me personally, I would go for an acquisition. Again, that is an opportunity that you can't really steer. We are exploring both alternatives.
Okay. Understood. Just one last question in terms of the IT interface and the investments that you're doing. If I understand, you don't think that your modified cost guidance will have an impact on your IT development and to the pace that you'll be able to launch new product and improve your interface. Going into the second half of this year, when roughly should we expect to see any larger changes in terms of your website? I know that you write that you made some changes, or some changes that you've made are visible already now, and you will launch the possibility of moving money real time to your platform during the summer. At what point will we see any larger changes?
I think we previously communicated roughly in Q3, I would say, on your question right now, in the second half or more to the last quarter of this year.
Okay. I think I'm happy there. Thank you.
We have another question from Moneka Hensel from SEB. Please go ahead.
Hi, good morning.
Good morning, Moneka.
Coming back to your focus on growing the lending business. Will you prioritize personal lending or expanding the mortgage offering?
We don't really prioritize between those two. We're in the exploring phase, and we're also exploring could we have the mortgage product travel in any way. Mortgage is done quite differently in the different Nordic countries, and we need to be very cautious about creating a Nordic leverage or scalability. To your question, we are not ruling mortgage out. We're exploring that opportunity as well.
A follow-up question is, we see high competition within personal lending throughout the Nordic countries, and what would be Nordnet's competitive edge here?
I think, again, coming back to our analytical capability, it is an analytical game. It's about optimizing the flow from loan brokers. It's about building scorecards that discriminate risks. The winner will be the ones who pick the right kind of customers up front and make the right up-front decision. Some of you have heard me saying that the fierce competition between the Swedish market now and a lot of companies growing their business, it's the easiest thing in the world to grow an unsecured consumer lending business. It's just to take on more risk. That is not the sustainable way. It's an analytical game, and we are well-positioned to continue to grow without taking on more risk.
I can add one thing there, Monica. For us strategically, we have relatively cheap funding to address this market with. You say right now that the strategic advantage is not so significant since money is cheap for everyone. In the long run, I think that also is something where we have a competitive edge. Right now, I think it's more to do than that because
I think we shouldn't underestimate the Nordnet brand. We are seen, and we are driving and redefining the financial world for the benefit of our customers. We're seen as a good guy player in this field, and that also goes for the lending business.
Okay, thank you. There's one question. How is your interest rate sensitivity? Do we have like 100 basis points rate increase?
Yeah. You could say there's always the all-else-equal caveat to this, we have almost SEK 20 billion in our liquidity portfolio and also roughly SEK seven billion in the lending volume. Some of the deposits are in savings accounts, it's just a smaller part of that. It's well above SEK 200 million if you just do all else equal and add one percentage point higher interest rate. We would definitely benefit from that. Of course, it will not be all else equal. In such an environment, we might see our deposits go elsewhere and so forth. Definitely a high leverage to higher interest rates for Nordnet.
Okay. Thank you very much.
Thank you.
We have another question from Nicolas McBeath from DNB. Please go ahead, sir.
Good morning. Most of my questions have been asked, I was just wondering if you could also give how you think about the cost guidance here that you're targeting in our growth and costs. What kind of horizon are we looking at here? Is it over the next few quarters or over the next couple of years, or is it more dependent on the income environment, as long as interest rates stay low, or how do you think about that?
As we said, I think a couple of years is probably a long horizon for us. In that timeframe, we will definitely be dependent on how revenues perform. In a way, coming into this year, we had a view that we would continue to grow on the cost side, add more resources, and continue to increase pace of development. With the first six months of the year behind us and where we are seeing the market head right now, we're taking our foot off the gas a little bit and maintaining costs for the rest of this year. That doesn't change the cost guidance for 2016. I think we should see this as maybe a two, three, four-quarter view right now. Looking a bit into 2017, the way it looks right now to us is that we'll maintain or reduce on the cost side.
Even though it's not a decision we're making quarter to quarter, of course, some investments are over the longer term. If we see shifts in the market, we'll factor that in. The way it looks right now, and with the first six months behind us, we think that we're taking a more cautious approach.
Okay, thank you. Just as a reflection, it sounds like you changed foot quite quickly here, becoming much more defensive on your growth and plans to invest here over just the last couple of quarters. You mentioned in earlier communication that you're targeting to increase growth, in particular in Sweden, but that doesn't seem to have materialized. Does that imply that you're reducing that ambition now again and accepting that Avanza is continuing to grab larger market share than you are because you don't simply see the possibility to continue to invest? How should we view this shift in your plans to invest that's come rather quickly over the couple of last quarters?
Sorry if I was unclear. We're not shifting focus, we're not shifting strategy, and we're not shifting our focus from Sweden. On the contrary, we have now built up our product portfolio. We have a mortgage product, we have the best supermarket or certificate product, we have the best margin lending product, we have the best personal loans product, and we have Shareville. We have a strong product portfolio or the strongest product portfolio in Sweden, I would say. Also we see now that our efforts are paying off since we're not on double-digit growth when it comes to customers, but we have 50% more growth in active customers in Sweden this quarter than the quarter 2015.
It's starting to pay off, and the things that we are addressing now in rebuilding the new customer onboarding process in order to increase conversion, that will have a positive effect in Sweden. We also believe that the possibility for our customers to transfer in real-time money from other banks. Also the renovation of our website is also addressing all four markets, but foremost it's our Swedish customers that are longing for a modernized site. No, we're not taking our focus off from growth or from Sweden in particular.
Okay. Thank you.
We have another question from Peter Kjaerbye from Carnegie. Please go ahead, sir.
Yes. Hi. Just one follow-up question from my side. In regards to launching new lending products, when roughly do you expect to have something out on that? Is it during Q3 or Q4 this year, or should we have to wait until 2017?
You can ask me that question when we, again, in Q3. I don't have any timetable on that, to be honest.
Okay. It sounds like we're not going to get it within the next coming months at least.
No, we're not in the building phase. We're in the exploring phase, so to speak.
Okay, thank you.
We have no further questions, gentlemen.
We have a question from the web as well. You know that you can press the envelope at any time to send us questions. There's one question here. We partly touched on that before. Anyway, you say in the report that you're going to be cautious on the cost side due to the lower interest and the commission. Despite that, you're raising the cost with 68% in 2016 compared to 2015 to go through with some initiatives. Two questions on that. What are these initiatives that you want to go through with? And two, will you save on something else in order to be able to execute on those? I think the last couple of years, we have invested in specific areas. We have built out our innovation capability, and that goes for more IT developers and more product developers.
We have built out our analytical capability, and that goes for licenses for software, analytical software, and also people. We have built out our occupational pension sales force in the Swedish market. That has built up the cost level from 2014 or end of 2013 to successively over time to the cost level that we have now. There are no new investments that are taking us up from 2015 to 2016. It's a latency effect. What we're saying now is that we have the ambition now to maintain this level. That means we are not killing any old investments, but over time, we will also take down the cost level without compromising our strategy. Was there any further web question? No, there's not. Okay, operator, unless you have any further questions.
No, we have no further question by phone.
Okay. I think we can conclude the call. Thank you very much for listening. If you have any further questions, you know where you can find me, Jacob, Johan, or Emily to put the questions forward, and you're welcome anytime. Thank you very much for listening, and have a great summer day here in Stockholm.