TF Bank (TFBANK) investor relations material

Executive summary

• Operating profit for Q3 2025 reached SEK 231 million, a 21% increase year-over-year, with earnings per share rising to SEK 2.70 from SEK 2.17 in Q3 2024.

• Loans to the public grew 20% year-over-year to SEK 22,797 million, with new lending up 32% to SEK 25,440 million, mainly driven by the Credit Cards segment and strong growth in Germany.

• The business is scaling efficiently, with improved cost/income ratios and a continued focus on profitable growth.

• Strategic transformation continues, including a planned rebranding to Avarda Bank AB and expansion into pan-European markets.

• Extraordinary dividend of SEK 5.00 per share distributed in June, and a 3:1 share split executed in July.

Financial highlights

• Total loan book grew 20% year-over-year in local currencies, reaching over SEK 22 billion.

• Credit Cards loan book grew 41% year-over-year, surpassing SEK 10.9 billion, with operating profit up 77% to SEK 296 million.

• Operating income for Q3 2025 was SEK 748 million, with a risk-adjusted margin of 8.9%.

• Return on equity was 22.7% (adjusted 22.8%), and total capital ratio increased to 17.4%.

• Net interest income increased by 18% to SEK 1,943 million, while net fee and commission income grew 23% to SEK 161 million.

Outlook and guidance

• The bank aims to achieve a loan portfolio of SEK 35 billion by the second half of 2027 while maintaining a return on equity well above 20%.

• Continued execution of the commercial plan with a pan-European focus and ongoing portfolio build-up with major retailers in Ecommerce Solutions.

• All capital ratios are targeted to exceed regulatory requirements by at least 2.5 percentage points.

• The bank expects continued profitable growth, stable credit quality, and strong capital ratios.

• Pillar 2 Guidance set at 0% by the Swedish FSA, confirming internal capital requirements.