Morrow Bank (MORROW) Q2 2026 earnings summary

Executive summary

• Achieved profit before tax of SEK 100 million in Q2 2026, up 17% year-over-year, with EPS rising to SEK 0.31 from SEK 0.27, driven by loan book expansion and improved credit quality, partially offset by integration and transaction costs.

• Completed the acquisition of MedMera Bank on 1 July 2026, increasing the loan book by ~65% to SEK ~30 billion and establishing a top-3 position in the Nordic consumer finance market.

• Successfully raised SEK ~1.1bn through rights issue and bonds, finalizing the SEK ~2bn financing for the acquisition.

• Organic growth continued, with gross loans up 19% year-over-year to SEK 18.0 billion, despite the sale of a SEK 440 million non-performing loan portfolio.

Financial highlights

• Total income for Q2 was SEK 372 million, up 13% year-over-year, driven by higher gross loans; H1 2026 total income was SEK 742 million, also up 13%.

• Cost/income ratio at 27.7% in Q2 (excluding one-offs), with operating expenses at SEK 113.2 million; H1 ratio at 26.0% (excluding one-offs).

• Loan loss ratio improved to 3.5% in Q2 2026, down from 4.3% in Q2 2025, reflecting better credit quality.

• EPS reached SEK 0.31 in Q2 and SEK 0.57 for H1 2026.

• Return on equity (ROE) at 11.9% in Q2 and 11.3% for H1; return on target equity (ROTE) at 16.3% in Q2 and 15.3% for H1.

Outlook and guidance

• EPS expected to more than double by 2028 compared to 2025, driven by scale and synergies.

• Combined ROTE target above 20% and cost/income ratio ambition of ~20% by 2028, including SEK ~150m in synergies.

• Focus remains on efficient integration, organic growth, and disciplined capital allocation for long-term shareholder value.

• Stable macroeconomic outlook in the Nordics supports continued loan demand and limits credit risk.