Avarda Bank (AVARDA) investor relations material

Executive summary

• Achieved record growth in Q2 2026, operating fully under a new strategy focused on relationship-based digital financial services, with a 21% increase in loans to the public year-over-year, reaching SEK 26,297 million as of June 2026.

• Operating profit rose 31% for Q2 2026, driven by strong demand in the German credit card market and a strategic shift toward Everyday Finance.

• Earnings per share increased by 40% to SEK 6.14, and adjusted EPS rose 33% to SEK 5.87 year-over-year.

• Customer engagement surged, with app-users up 30% to 540,163 and total customers up 16% to 3.5 million.

Financial highlights

• Operating profit reached SEK 256 million for Q2 2026, and operating income increased by 27% to SEK 1,723 million, with an improved operating income margin of 14.1%.

• Loans to the public increased 21% year-over-year to SEK 26.3 billion.

• Cost/income ratio improved to 34.6% from 37.7% year-over-year.

• Return on equity reached 25.8% (up from 21.7%), and adjusted return on equity was 24.7%.

• Deposits from the public increased by 27% to SEK 28,342 million.

Outlook and guidance

• Strong business momentum expected to continue despite geopolitical uncertainty.

• Targeting a loan portfolio of SEK 35 billion by H2 2027 and maintaining a return on equity well above 20%.

• Continued focus on reallocating resources toward Everyday Finance for growth, with strategic reallocation away from Consumer Lending.