Lea Bank (LEA) Q1 2025 earnings summary

Executive summary

• Completed redomiciliation and merger, now operating as Lea Bank AB in Sweden with HQ in Gothenburg, listed on Nasdaq First North Premier Growth Market in Stockholm as of January 2025.

• Share price increased 39% since relisting.

• Focused on unsecured digital consumer lending and deposits in the Nordics, Spain, and other EU markets, leveraging a scalable digital platform.

• Q1 2025 marks the first full quarter post-merger, with no prior year Q1 comparables.

Financial highlights

• Q1 2025 profit before tax: 27.7 MSEK; net profit after tax: 21.1 MSEK; annualized ROE: 6.0% (9.7% adjusted).

• Gross loans increased by 291 MSEK to 7,890 MSEK since merger.

• Interest income: 198.9 MSEK; interest expense: 62.1 MSEK; net interest income: 136.7 MSEK.

• Net credit losses: 72.0 MSEK; annual loan loss ratio: 3.7%.

• Deposits from customers: 7,479 MSEK; deposit ratio: 103%.

Outlook and guidance

• Strategic focus on core business, margin improvement, and profitable growth following redomiciliation.

• Commercial launch of credit card product planned in collaboration with partners.

• Monitoring regulatory changes in Sweden that may affect loan intermediaries and distribution mix.

• Plans to leverage new banking platform for growth and dividend capacity.