Avarda Bank (AVARDA) investor relations material

Executive summary

• Q3 operating profit rose 29% YoY to SEK 297.6m; 9M operating profit increased 30% to SEK 798.2m, supported by loan growth and improved risk-adjusted margins.

• Loans to the public reached SEK 28.38bn, up 20% YoY in local currencies; customer numbers rose 22% to 3.9m.

• Everyday Finance represented 66% of loans and 77% of operating income as capital and customer-acquisition resources shifted from Consumer Lending.

Financial highlights

• Q3 operating income rose 29% YoY to SEK 963.6m; 9M operating income increased 28% to SEK 2,686.8m.

• Q3 profit was SEK 233.3m, up 29%; EPS rose 30% to SEK 3.51, while adjusted EPS was SEK 3.51 versus SEK 2.70.

• 9M profit increased 34% to SEK 642.4m; EPS rose 36% to SEK 9.65 and adjusted EPS increased 32% to SEK 9.38.

• 9M operating expenses rose 19% to SEK 922.7m and net loan losses increased 34% to SEK 965.9m; Q3 expenses rose 21% to SEK 320m and loan losses rose 37% to SEK 346m.

Outlook and guidance

• Targets remain a SEK 35bn loan portfolio by H2 2027 at the latest, return on equity well above 20%, and capital ratios at least 2.5 percentage points above requirements.

• Everyday Finance is expected to remain the growth engine, with credit cards, app engagement and transaction volumes supporting profitable growth.

• Capital structure options, including bond-market financing, were under review after the total capital ratio ended Q3 just below target.