Enity (ENITY) Q2 2025 earnings summary

Executive summary

• Achieved strong organic loan book growth of 9.3% year-over-year, with all markets contributing positively; lending to the public up 6.0% year-over-year (9.3% currency-adjusted).

• Adjusted operating profit rose 38% year-over-year to SEK 177 million and 29.3% to 308.6 MSEK for January–June 2025, driven by stable margins and growth.

• Net credit losses remained low and stable at 24 basis points over the last 12 months, though increased to 42.7 MSEK due to non-recurring items.

• Completed IPO in mid-June 2025, broadening shareholder base, optimizing capital structure, and enhancing capital market access.

• Acquired remaining shares in Eiendomsfinans and fully integrated Bank2.

Financial highlights

• Lending to public reached SEK 29.6 billion, up 9.3% year-over-year; deposits from the public totaled 23,769 MSEK.

• Net interest margin stable at 4.2% in Q2, slightly improved from last year; net interest income rose 10.7% to 603.4 MSEK.

• Adjusted operating profit after tax was SEK 141 million, up 38% year-over-year; adjusted net profit was 245.0 MSEK.

• Cost-to-income ratio improved to 44% at group level; adjusted C/I ratio: 45.0% (53.6% prior year).

• Return on tangible equity reached 23.9% in Q2 and 21% for the first half; adjusted ROTE: 20.8%.

Outlook and guidance

• Targets maintained: 8-10% loan book growth, ~20% adjusted return on tangible equity, CET1 ratio 200-300 bps above regulatory minimum, and dividend payout of 20–40% of profit.

• Currency-adjusted lending growth of 9.3% and ROTE of 20.8% for the period are in line with targets.

• Expect continued organic growth and efficiency improvements, with focus on automation, digitalization, and customer experience.

• Regulatory proposals in Sweden and Norway expected to positively impact first-time buyers and support growth.

• Net interest margin guidance remains at 3.5-4% over the medium term, with some margin compression possible.