Morrow Bank (MORROW) Q1 2026 earnings summary

Executive summary

• Achieved strong organic loan growth of 7% in Q1 and 23% year-over-year, with gross loans reaching SEK 18.1 billion.

• Completed redomiciliation to Sweden, Nasdaq Stockholm listing, and announced transformative MedMera Bank acquisition, expected to increase the loan book by ~65% to nearly SEK 30 billion.

• Profit before tax for Q1 was SEK 87 million, up 10% year-over-year; EPS for the quarter was EUR 0.26.

• Return on equity at 10.7% and return on tangible equity at nearly 14%.

• Medium-term ambition raised to more than double EPS by 2028, driven by scale, cost synergies, and MedMera integration.

Financial highlights

• Total income for Q1 2026 was SEK 370 million, up 11% year-over-year, driven by higher gross loans.

• Net interest margin for performing consumer loans was 10.2% in Q1, impacted by product mix and funding costs.

• Operating expenses totaled SEK 103.8 million, including SEK 13.5 million in one-off costs related to redomiciliation and acquisition.

• Loan loss ratio at 4.1%, in line with targets, with a SEK 440 million NPL sale completed to improve asset quality.

• Profit after tax reached SEK 67.8 million.

Outlook and guidance

• Confident in delivering more than double EPS by 2028, supported by scale, cost synergies, and MedMera acquisition.

• Targeting a return on tangible equity above 20% by end of 2028.

• Cost/income ratio expected to decline to ~20% post-integration of MedMera, with SEK ~150 million in annual cost savings.

• Loan loss ratio for the combined entity projected at 3.2% in 2025.

• Dividend payments possible from 2027, depending on post-acquisition performance.