Avarda Bank (AVARDA) investor relations material

Executive summary

• Operating profit rose 30% year-over-year to SEK 244.6 million, with strong loan portfolio growth and improved profitability.

• Loan portfolio reached SEK 24.5 billion, up 21% year-over-year, driven by customer growth and transaction volume, especially in Germany.

• Return on equity stood at 26.1%, and total capital ratio at 16.3% as of March 31, 2026.

• Earnings per share increased by 47% to SEK 3.17; adjusted EPS up 32% to SEK 2.89.

• The company rebranded to Avarda Bank AB and revised segment reporting to Everyday Finance and Consumer Lending.

Financial highlights

• Operating income for Q1 2026 was SEK 826.8 million, up 24% year-over-year and 4% sequentially, with an improved margin of 13.7%.

• Profit for the period was SEK 210.8 million, up 45% year-over-year.

• Adjusted earnings per share rose 32% year-over-year to SEK 2.89.

• Cost/income ratio improved to 35.3% from 37.3% a year ago.

• Net loan losses increased by 25% to SEK 290.0 million, mainly due to portfolio growth; net loan loss ratio at 4.8%.

Outlook and guidance

• Financial targets maintained: loan portfolio goal of SEK 35 billion by H2 2027, return on equity well above 20%, and capital ratios at least 2.5% above regulatory requirements.

• Strong business momentum expected to continue despite macroeconomic uncertainty.

• Focus remains on deepening customer relationships and maintaining financial targets.

• Continued focus on scalable, technology-driven growth and sustainable profitability across European markets.