NOBA Bank Group (NOBA) Q1 2025 earnings summary

Executive summary

• Loan portfolio grew 8% year-over-year to SEK 123.9bn, with 11% growth in local currencies.

• Operating income increased 20% to SEK 2,734m, and net profit more than doubled to SEK 820m.

• Adjusted core operating profit rose 73% to SEK 1,124m, driven by revenue growth and lower credit losses.

• Return on tangible equity (Core ROTE) reached 25.9%, up from 17.4% a year earlier.

• Completed IT transformation and received a BBB credit rating with stable outlook.

Financial highlights

• Net interest income rose to SEK 2,527m (up from SEK 2,147m year-over-year).

• Cost/income ratio improved to 23.0% (27.1%), and adjusted C/I ratio to 21.8% (24.8%).

• Credit loss level decreased to 3.3% (3.9%).

• Operating profit nearly doubled to SEK 1,048m (535m), and EPS increased to SEK 1.54 (0.74).

• Common Equity Tier 1 capital ratio improved to 13.8% (13.1%).

Outlook and guidance

• Medium-term targets: annual organic loan growth of at least 10%, Core ROTE of ~30%, adjusted C/I ratio below 20%, and CET1 ratio of 13–15%.

• Dividend policy set at 40% of adjusted core profit to shareholders, with inaugural dividend expected in 2026.

• Management remains confident in achieving volume and return targets despite external volatility.