SBAB Bank (SBAB) investor relations material

Business overview and strategy

• Focuses on collateralized lending in Sweden, mainly residential mortgages, with a strong digital presence and no traditional branches.

• Holds the 5th largest mortgage portfolio in Sweden and targets metropolitan and growth regions.

• Strategic goals for 2030 include ≥10% return on equity, 10% market share in residential mortgages, and a 50% reduction in emissions intensity.

• Consistently ranks first in customer satisfaction for both retail and corporate segments.

• Emphasizes accessibility, transparency, and consideration as key value propositions.

Financial performance and targets

• Lending stood at SEK 544.2bn and deposits at SEK 266.8bn as of Q1 2026.

• Return on equity reached 10.9% in Q1 2026, with a cost/income ratio of 33.6%.

• Net interest income increased by 1.6% QoQ, driven by higher deposit margins.

• Maintains high cost efficiency, targeting a cost/income ratio below 30% by 2030.

• Funding needs for 2026 are estimated at SEK 70bn, with a diversified funding strategy.

Credit portfolio and asset quality

• Lending is 70% residential mortgages, 19% property companies, and 11% tenant-owner associations, with low average LTVs.

• Credit losses remain minimal, with a 0.00% loss ratio and 0.15% of loans in stage 3 as of Q1 2026.

• New mortgage rules from April 2026 raise the LTV cap to 90% and remove stricter amortization for high DTI borrowers.

• Cover pool is robust, with SEK 406bn in assets and a weighted average LTV of 54.5%.

• Stress tests show strong resilience, with minimal CET1 impact in adverse scenarios.