Lea Bank (LEA) investor relations material

Executive summary

• Delivered profit before tax of 40.4 MSEK and profit after tax of 31.4 MSEK for Q1 2026, up from 27.7 MSEK and 21.1 MSEK in Q1 2025, with annualized ROE of 9.5% (14.4% adjusted).

• Gross loans increased by 434 MSEK during the quarter, reaching 9,770 MSEK, with growth in all geographies.

• Interest income rose 16% year-over-year to 231.2 MSEK, driven by higher lending volumes.

• Customer deposits grew by 854 MSEK to 9,439 MSEK as of March 31, 2026.

• Board proposes a dividend of 69.5 MSEK (0.72 SEK per share), pending AGM approval.

Financial highlights

• Net interest income reached 160.6 MSEK, with total operating income at 188.5 MSEK.

• Net commission income was 16.5 MSEK, and total operating expenses were 59.4 MSEK.

• Cost/income ratio improved to 31.5% from 36.2% year-over-year.

• Loan loss ratio remained stable at 3.7%, with net credit losses of 88.7 MSEK.

• Total assets reached 11,147 MSEK, and total equity stood at 1,432 MSEK.

Outlook and guidance

• Focus remains on profitable growth, strengthening direct distribution, and operational excellence.

• Financial targets include ROE > 15% and cost/income < 30%.

• Plans to improve digital customer journeys and pursue selective portfolio acquisitions.

• Continued strategy to be a leading digital niche bank in Sweden, Norway, Finland, and Spain.

• Attractive dividend policy maintained.