Earnings Call: Q2 2021

Jul 23, 2021

Okay, then. Hello, everybody. Welcome to Nordnet and the presentation of our financial report for the Q2 of 2021. My name is Johan Tillestahl, and I'm the Chief Communications Officer at Nordnet. And with us here is also our CEO, Lars Jacob Noling And our CFO, Lena Treanho, will make a presentation of our business and financial numbers for Q2. That will take around 20 minutes or so. And after that, we'll have a Q and A session. And during the presentation itself, all participants are muted, and we'll let Lars Orkelen not run through their slides first. And when we come to the Q and A session, you have 2 alternatives to ask questions. You click on the button at the bottom of the screen that says raise hand, And I will then enable you to talk, and you can ask your question verbally. You can also send in your question in writing. If you want to use that alternative, You just use the Q and A function at the bottom of the screen. You write your question and I will read it out to Leernt Elba Schokke. We'll come back to that later when I start the Q and A session. And of course, as always, the presentation itself will be available on our corporate website together with a recording of this session. Okay, then let's go. Laschocke, please go ahead. Thank you. So you can go click to next, Sunny. Starting with the key highlights, you see you continued very high customer growth and increased the customer base with 31 Decent in 1 year, and that's more than 400,000 new customers in 1 year. Service capital exceeds now SEK 700,000,000,000 and reaches a new record, both from underlying market growth but also from very high net savings during the first half of the year. We also see a very Growth in the loan business with the lending volume being on all time high SEK 23,000,000,000 and see very good growth in both mortgage And the margin lending products. We also see very strong development in the fund business, where the fund capital increased to 65% in 1 year. We also launched a new tech index fund and ESG enabled our international index funds. And overall, we have the next best The financial result in Norden's history with a profit before tax of SEK536 1,000,000 with the growth of revenues around 28% and still a very scalable model. Operating expenses for 2021 is estimated to be around SEK 40,000,000 higher than previously communicated level of around SEK 1,100,000,000. And this is due to the very strong customer growth, a thirty eight Growth in 1 year compared to the guidance of 10% to 15% growth and also partly a higher marketing Marketing to capture the very strong growth trend that we currently see. And when we come back also, we revised medium term financial targets latest by the quarter 4 presentation. You can go to next. Yes, some financial highlights. As I said, customer base increased to 38%. We currently have around 1 5,000,000 customers in Nordnet across the Nordic countries. Service capital increased 66%, both, of course, with the market growing, but also very high net savings. Number of trades, Up 13% versus last year, but we see a drop in trading activity per customer, but that's compensated by the that we have so many more customers this year compared to last year. And revenues up 28% from the customer growth and also high net savings Same as capital growth. Operating expenses is up from mainly The big customer growth that puts cost pressure in customer service and back office functions. But also that according to 2020 was also fairly low comparable. But overall, still very strong operating leverage We increased the profit before tax with 41 percent to SEK 536,000,000 in quarter 2, 2021. Since 2019, we have a growth rate in the customer base of 30% per year and savings capital of more than 40% per year. And as we talked about before, the reasons for this is, one, is that we modernized our platform and really improved the customer experience, That's really appreciated and liked by the customers. But also that we see very strong digitization trend in the Nordics and a high interest for savings and investments in general. And then we also reached an inflection point when it comes to growth in all countries also outside of Sweden. Net savings per month versus last year. And if you see the development both in customers and net savings has been very strong. We have grown the customer base with 250,000 customers just in the first half of this year, and that's 100,000 more customers compared to Same period last year, which was a very good period. And also net savings is almost SEK50 1,000,000,000 in the first half of the year, Also around SEK 10,000,000,000 stronger than last year and on a very good level. We can go to next. And we are the leading digital platform, FSMS and Investments in Nordics, and we have a very well diversified revenue footprint with 40% traffic coming revenue that's coming from Sweden, 20% each in Norway in Finland, around 23% in Denmark. But as we see also in the middle graph and the graph to the right is So that our growth the customer growth is highest in the countries where we have the highest margins. So that Overall, it would support the revenue margin for the company over time. And the reason for the high revenue margin outside of Sweden, we also discussed before, is mainly due to cross Order trading is a high share of cross border trading in those countries, which gives us higher commission revenues and also we earn FX spreads. We can go to next. And we see also strong development in all countries when it comes to customer growth and savings capital growth. And in Sweden, we see increasing growth rates. And we have doubled the amount of new customers first half of twenty twenty one versus same period last year. We also see a very strong development in Norway, Denmark and Finland, where Norway growing customer base is 6% in 1 year, Denmark 84% and Finland 32%. Go to next. Also good development in all revenue streams. The red part here is net interest income, the dark blue part is mainly fund income and the light blue is brokerage. And we see that we have the last year's very good growth in net interest income and the fund business of around 25% yearly growth rate And even higher growth rate in the brokerage business. And if you look down to the right, you also see that The margin development, where we have a stable margin in net interest income and in funds. And we see a slight drop now in the brokerage Margin and that's due to less trading activity per customer in quarter 2 compared to quarter 1 last year. I will comment that further on the coming slides. Let me go to next. So if you look at trading specifically, we see that we still have a very high share of customers trading, About 40% of the customer base is trading. And in total, we have 50% more customers trading in Q2 last year and that you see in the graph to the left. But what we also see is that the trades per trading customer up To the right there, it is going down and it's lower than quarter 1 and it's also slightly lower than quarter 2 last year. The reasons for this is both at seasonality, where we have very clear V shape and seasonality when it comes to trading activity and also that we have seen lower volatility in the market in Q2 versus Q1. Down to the right, you see that the cross border trades, the share of cross border trades is still high, a little bit down from quarter 1, but still on a high level. And that's mainly also now supported by the country mix that we're growing in the countries where we have we grow so much in the countries where we have also high share across border trading. If you go to next. And a little bit about trading seasonality, and that shows a clear B shape. And in the graph to the left, you see that we have the highest Trading activity in the beginning of the year and the low points in June, July and then that starts picking up again from August, September. And the red graph here is the development 2020. That was, of course, the special with the corona crisis in March. And the light blue is trading per customer per day in 2021, and the dark blue line is the average trading per customer per day, '15 to 'nineteen. And if you see the light blue line, we have lower trades because we have trading days versus 2020, which was exceptional year, but higher than the average 2015 to 2019. And also in the graph to the right, you see share full year trades per month. And here, you also see the effect of There's a number of trading days and the growing customer base over time, but also a clear B shape. Go to next. Again, overall, strong Performance and customer satisfaction that we measured through NPS. We have a clear number 1 position in Norway, Denmark and Finland and Strong number 2 position in Sweden, so overall, a leading position on Net Promoter Score and customer satisfaction in the Nordics. That's also enable us to either increase or have stable market share versus last year when it comes to trading with local exchanges. Can I go to next? And also short comment on costs since we also re guided on the cost. And if you look at the graph to the right, you see the cost development over the last years in absolute terms. And here you can see that we have had a stable cost level now with 3.5 years. And that's, of course, Improved the cost margin quite a bit from 38 bps down to 20 bps currently. And the cost initiatives we're working with is to the left here, starting that we have a very stringent cost covenants that we follow cost very closely and also on a monthly basis And here, we have done a lot, both smaller automations and simplifications and larger ones like fully optimized the journey for mortgage and also SIM automated part of the credit application processes. But we still have a lot to do. We still have many processes, so that was partly driving the cost now in back office and customer service due to High customer inflow. We also shift all consultants that we can to employees, especially in tech. And then, of course, we work very extensively with 3rd party spend and Have a good procurement organization and see that we get the right cost in our contracts going forward. But as we said in the beginning, we have re guided on the cost for 2021 versus what was previously stated, so SEK 40,000,000 higher. Due to that, we have 38% annual growth in customers compared to the financial target of 10% to 15%, but put then a Cost pressure in customer service and back office and partly also that we will have higher cost for digital marketing to capture the strong customer growth trend we currently see. Go to next. And we continue to build on our Platform to build the best platform for savings and investments, and this is just a few highlights what we've done in Q2. So we relaunched the Finnish site in Swedish, we will have the in Finland, both Swedish and Finnish language, which is appreciated by the Swedish speaking customers in Finland. We also ESG enabled all our international index funds, so they are in Article 8 compliance. We've all launched tech index fund that's been very popular with the 40 bps fee, which It's the lowest in the market in the Nordics. And we also launched a number of features, of course, in our app and web, like buying cell box in the app that you can log in via a QR code on the web, etcetera, quite a lot of new features. So I think And there and leave it to Jullen to talk a little bit more about the financial performance. Thank you so much, Lars Oke, and good morning, everyone. We can flip to next slide, Sunny. I told you before, but the 2 main drivers for Nordenet is Customers, number of customers and savings capital and implicitly also the net savings, of course. And this is summarized of how the development of those It's been during the years throughout 2019 to now. And as you can see, 2019, we had a growth rate of customers about 20% to 25% And then it increased in 20% to 25% to 30%. And now we're up to an almost 35%, 40% Growth on customers. And that is, of course, very pleased to see. Also, the savings capital has grown Quite a lot, but not just that. It also that the cost the savings capital per customer has grown. With this tremendous growth rate of a number of customers, I would have expected it to please be the same or might even lower, But it actually has increased from $412,000 to $450,000 So that is also good. It's also good to see that this is a spread over the fund and equity side. So both those 2 have increased quite significantly. We can go to next slide. This also comes out in the revenue streams. I mean, we are now quite diversified in all those four countries, having 20%, 25% from In revenue from the different countries, except for Sweden, a little bit more. But also the revenue streams, all of them has increased since 2019. So it's not just one as transactions or as funds or something like that, is it within all streams? But what we can see here is also that The level is from 2019 around SEK 400,000,000 in 2020 around SEK 600,000,000 and now we have increased it To around SEK 800,000,000 with a giant peak here in Q1, of course. But as you can see here, it is also Net interest income is fund and is transaction. What is specific for the Q2 here is actually other income, And that is generated by high IPO activity revenues. And I would say that, yes, there's been a high activity general, But also that we have specifically addressed that market and are very have a very good market share for the retail part of this one in all four countries. You can go to next. While this increase Of customers and the revenue increase as well, we have been able, as Forssoka told you before, Kept the cost quite stable. And here you can see how consistent it is on a quarterly level. Yes, we had lows in 2020, but are about the same level in 2019 as we are now in 2021. That was a low in 2020. We hadn't had this major increase of customer inflow. We also did not be able to Employ that much developers, and that has we increased with, which is a cost. And then we also now in Q2 Actually do some marketing efforts to go forward. And that is also why we indicate that the cost will be higher We are intended to maintain that level. You can go to the next. This actually leads to the operating leverage. I mean, with a result For the 6 months, 2020 of SEK 750,000,000 PBT and in 6 months, 2021, SEK 1,400,000 almost. That is the operating leverage. I mean, yes, we have a small increase in cost, but it's really driven by the revenue side. So I'm very pleased to see this one. We can go further on. We've been I've been talking about the revenues and the customer inflow, But also one thing that has grown significantly is the lending portfolio. We have grown it from last year, SEK 16,000,000,000 To now SEK 23,000,000,000. And as we earlier pointed out, the unsecured part is on a stable level, But relatively, it decreases still on SEK 4,000,000,000. But the mortgage level mortgage lending is increasing as the margin lending. Both of us are generating good revenue at very, very low risk. Looking at the credit losses, I would say they are they were in Q4 Q1 Very, very low. And the underlying is the same here, very, very low. We have increased some reserves, and that is why we end up At the same level as we had last year, same quarter, but still on a low level. It is mainly in the Our secured portfolio, of course, but in respect of IFRS 9 and the growth of those other portfolios, The resource also increases in those parts as well as with the liquidity portfolio, but it's mainly driven by IFRS 9. So the underlying credit losses are as low as before or even maybe even a little lower than that? We can continue. In respect of the capital situation, that is maintained on a good level. Capital adequacy is very high buffers, and we're not utilizing the capital that we have in a risk perspective. But that is due to that we have to have quite a lot of capital due to the leverage ratio. Now the leverage ratio is in effect, And that is the minimum requirement, 3.0 percent. We are still awaiting the buffer level that we will be required to hold, And we expect that decision to come in late September to us, but that is specific for each bank. So we can't Anything and I don't want to speculate in where that will end up in. You can turn to the next one. And thereby I hand over to you again, Lars Schorken. You're on mute, I think. Yes, sorry. A little bit short on the financial Form versus medium term targets. Yes, customer satisfaction we talked about strong. Customer growth was also very strong compared to the guidance, 38% currently versus guidance of 10% to 15%. But like Lena talked about also what we're especially happy with is that In spite of the strong customer growth, we have a very high income per customer since new customers normally come in with lower capital. Also still, last 12 months, a good income margin and operating expenses we talked about and the dividend policy of 7% of the net profit per year. But like I said in the beginning also, we will come back to the revision of the medium term targets latest by the quarter 4 reporting. We can go to next. And again, just a recap of our key focus areas, starting with the customer side. The most important is to continue to build on our best platform for savings and investments. That's what we do every day. Of course, to achieve then that we have the best Customer satisfaction and overall a low churn. We also know to have happy customers, you need happy employees. We work a lot with Our employees and we target to have an upper trend on the eNPS and also that we are able in a good way to attract and Top talent. And then as a digital path, profit savings and investments, Governance is key. We are in a trust business and we need to earn that trust every day. And that means that we need a full control of our risks, both compliance risks and other risks And overall, be it trusted in like brand. And when it comes to the profitable growth, it's really to capture the Nordic growth Potential, we currently have a market share of 5% in the Nordics. We have ample room to grow for many years. And of course, to do that, So with that, we end this presentation and we move to Q and A. Great. Thanks a lot guys. Time to open up for questions. And like I said before, you just raise your hand, Digitele, and I will enable you to speak. I will announce you by name and you need to accept to be unmuted. It will show up a request on the screen. And of course, it is nice if you just Briefly introduce yourself before you ask your question. Or you can also send in your questions in writing by using the Q and A button, and I will Read them out loud to Lars Rocha and Lennart. All right. Then first question comes from Patrick Bra Thillius, you with us, Patrick? Can you hear me? Yes, Pato, we can. Please go ahead. Great. Yes. Hi, Patrick Bratilius from ABG. Thank you. A couple of questions from my part. If we just start by the on the costs. So just to be crystal clear here, if we look further out in 20222023, Is this the new cost base that we should think about? Or do you expect The cost drivers of reducing third Party spend and simplification automation that, that will reduce the cost base back to the 2019 level? Or is or should we even expect that the cost base can increase in 20222023 With SEK 40,000,000 annually, how should we think? Yes, should we start with that? Did you have more questions or should we start with that one? I have more questions, but we can start with that one. Yes. So as we said, we will do a full reguinance of all the medium term targets and no later than quarter for reporting. And the cost in 'twenty two is also a little bit function of is a function of the customer growth in the coming years versus how fast we can automate what's all the processes. Okay. It's a voice in the background. It's hard to I don't know if it's with you, Patrick. Sorry. But if No, sorry, but So in any case, we see, I mean, limited cost increase in years to come, but it will be a function a little bit about The growth and how fast we can automate is also a little bit dependent on tech resources. Okay. So if the growth rate were to be higher than your target of growing annually 10% to 15% that could lead to a cost increase? Yes. So I mean, The cost we know is a function a little bit about the growth and also how fast we can automate. And that's again dependent on how many tech resources we have. So it might be that we want to scale up slightly on the tech resources to manage automation faster. But we come back with your guidance fully in latest by quarter 4. Okay. Thank you. And then as you showed in this presentation, you show a clear trading seasonality pattern. But in that graph, you show that it the trading generally picks up during the Later part of the year? So given that backdrop, do you expect you will be able to grow transaction related income In the second half from the base we now see in Q2? Yes. But that the graph shows clearly. I mean, the low Point you have in June, July, and then it picks up again from August, September and onwards. Of course, the 1st week, at least in August, is normally calm. So that's normal pattern that we've seen for many years. But again, of course, it's dependent also on the overall volatility in the market, as we know. But we have fairly long term trends, as you see, on this. Yes. Okay. Got it. Thank you. And my last question then, what surprised positively on the income side against My numbers at least was the other income driven by the IPO revenues, I guess. How does that look in the second half? How does the pipe look for IPO revenues? It is going down? That is a strong still, it had a strong pipeline for sure. And like Janard said also, we have Move forward our positions when it comes to retail distribution for IPOs and And we are a selected partner for many of those, both in Sweden and also definitely in the other countries. Okay. Thank you. That was all for me. Thank you, Patrick. And next person up is Mats Mads? I think you can speak now, Mads, if you want to. It's muted. It's on the line with 2 different Yeah, 2 months. 2 months. All right, we'll see if we can get Mats back later. Ermin, are you with us? Can you hear me here? Yes, Mads. Yes. Okay. Give me one second. That's interesting. It ended up with my colleague. But you can hear me now. Okay, Mats. Yes, please. Okay. Thank you. I'm just interested a little bit in the client mix and profit per trade depending On the countries here, I see that operating profit per trade goes a little bit in different directions in different countries. What is the main reason For that, it looks stronger in Sweden actually than it does in some of the other countries. And then also if you have The client mix of the income generation, if you look at the Q2 here, is it a lot On new clients, say maybe more in savings capital or is it back to more active traders that generate The highest share of income, if that's something you can share with us. And then thirdly, perhaps on FX income is How much higher? Is that something you could share with us? Is it for Nordic Clients trading stocks in the U. S. Rather than Norwegians and Danes trading stocks in the Stockholm Exchange. Is that something you have data for? Thanks. Yes. I think client mix, Overall, I think a little bit more trading from heavy traders versus retail. That's if you look at the total mix, And that, of course, impacted margin a little bit, I would say, in Sweden and Norway specifically. And in the other countries, I think it's just a function also that we have a little bit less cross border trading in Denmark and Finland compared to Quarter 1, and of course, that impacts the margin. When it comes to FX, Nordic versus U. S, I don't have the full breakdown. But I will say it's I don't think it's major differences. Perhaps U. S. Is a little bit down in Q2 versus Q1, while Nordic then Mix wise, it's a little bit up. I don't have the exact numbers for that. Okay. So operating profit per trade, I did see that It's up in Sweden, I would say unchanged Norway, but down Denmark, Finland that is due to that they trade less cross border. Yes. Okay. Thank you. Stay at high levels, but less from quarter 1. Yes, yes. It's much higher than 2020, but definitely down Q on Q, so yes. Okay. Thank you. Thank you, Mats. I think we have Ermin Kari Now hello, Ermin. Yes. Good morning. Can you hear me? Yes, we can. Please go ahead, Ermin. From Kenny again, I think. That's correct. Thank you. So the first question would be on the midterm targets. Should we expect that to mainly be an update on the cost side? Or is there any reason We expect that you would need to alter your long term customer growth outlook or so From the current base, the 10% to 15% from the current base going forward? Yes. We will revise in total. I can't comment much More than that, of course, but we look at all the targets when we make the revision. Okay. Then you started to hear a little bit about marketing. You said on Q2. I think previously, it's been predominantly word-of-mouth. Is it that you're seeing a better return on marketing spend or that you're seeing some saturation in the natural customer growth? No, it's more since there is such a big interest in savings and investments and a strong growth trend. We want to see if we can leverage that further by digital marketing. Of course, we could put very close Look at the customer acquisition costs by that initiative that it corresponds to where we want it to be. And if it doesn't, we will pull back. But so far, what we've seen is it's been good. We're taking in good customers to a reasonable CAC. But it's something we really monitor very closely. And if it's favorable, we continue. If it's not, we will pull back. But we really want to see if we can boost the trend that we have. And I think partly the effect we see in Sweden with the stronger growth now in first half versus So first half of the last year is partly due to that we were more visible. That's very helpful. Thank you. Then just one last question, Alex. You talked about these other efficiency measures on the cost side with Which is why I think the mortgage process and so on. Did you share any additional ones that you have sort of going forward that are more material? Yes. So we look especially now the transfer of securities, so transfer of funds and other securities from other banks So our platform that we look at, and that's a lot of manual steps in there. We also look, I mean, when it comes to MOMA pension in Sweden and Denmark, we've done a few things, but we have a lot more to do and that's we're also doing focusing on right now. And then we also see what we can do on different onboarding processes, especially when it comes to onboarding of miners and onboarding of enterprises. That's very manual today. And so we have a rather large number of things we look at currently that we can Definitely improved productivity a lot by automating that. Great. Thanks for providing some color. That's all for me. Thanks a lot, Emil. Next person up is Maria Semikatova. Hello, Maria? Yes, hello. Can you hear me well? Yes, we can. Please go ahead, Maria. Great. So a couple of questions. First on the cost, I appreciate that you are now revising the targets. But with regards to 2021, this EUR 40,000,000 second increase, What is your assumption on the customer growth for the rest of the year? You assume that we are staying at this 38% that we've seen as of June Or you expect some deceleration, potentially would have another cost revision if the customer growth exceeds your assumption. Moving on the growth drivers. Can you share with us how much savings capital You were able to get to the platform from Norwegian EBITK and also Swedish pension reform. Is there anything you can share with us on your ambition, How much you can capture in both countries? And then finally, you mentioned that there is a discussion of potential introduction of a ceiling on The accounts of Sweden, how concerned are you with this if it happens? And maybe what percentage of your savings capital is coming from accounts So above this mentioned threshold. Yes, we can look at cost for 2021 Versus the customer growth, of course, I mean, quarter 1 was exceptionally high growth. Quarter 2 is still very good. So I don't think we will reach the quarter one levels for the rest of the year. So I think the cost or the staffing we have in our customer service and operations should be quite enough to handle the customer growth tuning forward. So you will not see another revision of cost this year. When it comes to savings capital from EPK and Sweden's transfer, I think EPK is Slightly north of SEK3 billion now. When it comes to Sweden, we've increased the number of transfers with 50% compared to the last Yes, same period last year. But it takes time to transfer the money in 3 to 6 months. So we haven't really seen the impact yet of savings capital, but that will come over time. But we need in Sweden to also work on the process side because in Norway, as you know, it's fully automated and it's an external transfer hub, so you basically push a button and the transfer is done. In Sweden, there's a lot of parties involved, very manual processes, and it takes a very long time. And of course, incumbents try to make this process as cumbersome as possible. So we also want to work a little bit wise to see if we can have a similar process that we have in Norway and actually in Denmark also, which is also a transfer hub. When it comes to ISK, It's not a big impact for us if it would happen to be capped. It's less than 10% of our account and less than 10% of our savings capital. And here, we, of course, we are benefiting from being in 4 countries, being less sensitive to Local changes in taxation. But that said, we will be very hard for the customers here when it comes to ISK because savings Should be benefited and not punished, and it should be you should know what's The requirements on the savings for on a stable basis, you can't go in and change requirements or Taxation. And we've lobbied very successfully now versus the government on this to maintain the current The ISK set up without any changes. So let's see what's happening. Thank you. This is very clear. And Are there any discussions across other Nordic countries with changes to investment accounts? No. Actually, on the contrary, I would say, In Denmark, they look at increasing the amount that you can have in that account. In Finland, they discussed to include more securities and even funds in their tax efficient wrapper. So it's only in Sweden and always no changes either. So it's only in Sweden we've heard this that wish to put a cap. Okay, thank you. Thanks, Lopora Jens. And then we have Carl Oskar Biedenjian from Berenberg. Hello, Carl Oskar. Yes, Bjorn? Yes, sorry, thank you. I think most of my questions on the brokerage income has been Answered. But I just want to touch up on sort of the main driver for the somewhat softer revenue per customer. It's only mostly related to a variation in cross border trading and somewhat lower activity. This is not As a result of marketing campaigns, introductionary offers or something like that just in terms of how we look at this going You're correct. There's only trading activity and cross border. No special no change in Change in commissions or start offers or anything like that. Okay. That's clear. And just lastly, are there any news in the market with regards to Possible change in regulation regarding fund retributions and kickbacks? Yes. I mean, we haven't heard much since The debate in quarter 1 in Sweden, but the SFSA said they will investigate this and we'll come with a new Also, of course, we monitor and see what's happening, but we have a lot of, of course, experience from moving to platform fee model in Norway that managed quite successfully, a little bit drop in margin, but a large increase in volumes. Overall, the fund business in Norway has been performing very well. And would you in a worse, can this call a worst case scenario that you would need to abandon the retribution in Sweden? Is the IT infrastructure there as you already have this in Norway and operating successfully on that model or would that typically then entail an additional cost? No, no extra cost. Okay. That's very clear. Thank you so much. That's all for me. Thank you. Thank you, Kjellos Daria. That was all for the verbal questions. We have some questions also Something in writing. First batch of questions come from Nicolas McBeath from DNB. Three questions. Could you please comment on, 1, The sequential decline in net brokerage income per trade. Also if adjusting for FX revenues, it seems that there was a meaningful decline quarter on quarter. Question number 2, the outlook for the lending growth in the next few quarters. Is the loan growth we have seen in the past few quarters sustainable sometime ahead? And number 3, please update us on the current mutual fund margin and if you see anything impacting this in the next few quarters that you think we should keep in mind. So Net Brokerage Income for Trade, Lending Growth and Mutual Fund Margin. I think when it comes to income trade, I mean, the main reason is still cost border. But it's also a little bit the mix impact, heavy traded versus retail, where the higher commissions on retail overall. I don't know if you have any additional favor to that, Lennox? No. You can see it sometimes. But in general Torrance, I think that is what we would say really. And of course, it's a little bit also The country mix where Sweden stopped a little bit less than the other countries. This We see that from time to time that you have the different trading patterns in different countries. And this quarter was a little bit lower outside of Sweden, and as you know, we have higher margins overall outside of Sweden. So that's probably most impacting a bit. When it comes to lending growth, I would say definitely mortgage, very strong development. See that will continue. Morgan Lending is, of course, still very strong. But as we also know, there's a little bit also correlated to how On the market moves, so if you have a big drop in market in the market, you also drop in margin lending. But we see very good correlation and a very Interest from our customers in this product, while personal loans, we keep at a stable level of around SEK 4,000,000,000 according to our plans. I think you can add on that to margin lending side that it is not just new customers, it's not just Customers that already have a high level of margin lending is actually old customers that are Opening up margin lending accounts. So my suspicion is that, Yes, this will be more sustainable than that and it has been before. It is still on a low loan to value leverage rate. And when it comes to fund margin, we see that stable. Of course, it's the potential platform fee in Sweden that might impact this going forward, but It's too early to tell yet, but like I said, what we also saw in Norway when that happened, we got a lot higher volumes So that compensated well for the growth. Okay, guys. Thanks a lot. Next question. You have touched Yes. So it's 2 main reasons, I would say. 1 is seasonality that we show that seasonality is V shaped. So you have highest trades per customer in the beginning of the year, and then it drops down to low point June, July, and then it starts picking up again from August, September. And that we see now we follow this for many years, and we see that pattern clearly that we showed on the slide. So that's one. The other part that which is, of course, impacting trading is We had a fairly high volatility. If you look at the VIX index in quarter 1 in 2020, and that's been definitely lower in and Q2. But still, I mean, the interest in trading is there. And then like I said, also we have Now 600,000 customers that trade on a corporate basis, and that's up 50% versus last year when we had 400,000 Quarterly trading customers, it's just that they trade a little bit less per customer. Yes. Good. Next question is about dividend. And we expect any additional dividend this year? And do you have any forecast what the annual dividend will be going forward when the restrictions, recommendations are removed. You have that in the presentation as well, but please comment. Yes, I can have that one. And I mean, We're still having the dividend policy of 70% of net profit on a yearly basis. In respect to 2021, our extra dividend here, We have a strong capital position and we have capacity to do the dividend in respect of capital adequacy. However, we are waiting SFSAs requirement regarding the buffer on leverage ratio. And that is why I do not want to speculate on this topic at the moment. Okay, good. Thanks. Last question today is from a customer point of view. Any plans to open up new interesting markets For your customers such as Euronext, for instance, Rusko, how could you comment on that? Yes. So we look at opening new markets And probably starting with additional markets in Europe. So we come back to you when that happens, but that's definitely in the pipeline. Good. Thanks a lot. I think all of you who participated. There were no more questions as of now. And before we close, I can say that the next thing that happens when it comes to financial reporting in Sonovnet is that we publish our monthly statistics for July in about 1.5 weeks' time on the 3rd August. And all the information about us is available at nutnetrb.com. Okay. Thanks a lot.