Avanza still sees FY costs +11%

Avanza still sees FY costs +11%

Avanza Bank Holding AB (publ) (STO:AZA) has released its latest financial projections for the fiscal year 2025, indicating a significant increase in costs. The company expects its costs to rise by 11% compared to the previous fiscal year, driven by various strategic initiatives and operational expansions. This forecast comes amidst a backdrop of strong performance and growing market share.

According to the company's latest report, the primary driver behind the cost increase is the expansion of its services and market share, which is expected to boost revenue growth. The company's earnings are forecast to grow at a rate of 5.7% per year, with a notable increase in net interest income due to rising interest rates.

Despite the cost increase, the company's financial health remains robust, with a strong balance sheet and a stable dividend track record. The company's shares have seen significant growth in the past year, with a 131.74% increase since the IPO and a 37.52% increase over the past year alone. The stock is currently trading at SEK 366.50, up from a 52-week low of SEK 214.40.

However, the company's future growth may be subject to execution risks and potential net margin compression due to increased operational costs. Investors should monitor the company's performance closely to assess the impact of these costs on its profitability and shareholder returns.

References:
[1] https://simplywall.st/stocks/se/diversified-financials/sto-aza/avanza-bank-holding-shares
[2] https://simplywall.st/stocks/se/diversified-financials/sto-aza/avanza-bank-holding-shares