SBAB Bank (SBAB) Investor presentation summary

Business update

• Fifth-largest mortgage lender in Sweden with a low-risk residential mortgage portfolio and strong customer satisfaction, holding #1 ranking for seven consecutive years.

• Lending and deposit growth remain robust, with total lending at SEK 547.5bn and deposits at SEK 273.6bn as of June 2026.

• Digital-first service model with no traditional branches, focusing on metropolitan and growth regions.

• Strategic ambitions include increasing market share in residential mortgages, tenant-owner associations, and corporates by 2030.

• Funding needs for 2026 are estimated at approximately SEK 70bn, with a focus on covered bonds and deposits.

Credit portfolio and asset quality

• Lending portfolio is 70.6% residential mortgages, 10.9% tenant-owner associations, and 18.2% property companies, with an average LTV of 60%.

• Credit losses remain exceptionally low at 0.01% for H1 2026, and the share of stage 3 loans is 0.21%.

• Strong and resilient cover pool with SEK 381bn in mortgage assets and a weighted average LTV of 53.8%.

• Prudent underwriting criteria and robust asset quality through economic cycles.

• Additional lending of SEK 133.7bn qualifies for the cover pool if needed.

Financial update

• Operating profit for H1 2026 was SEK 1.4bn, with ROE at 10.1% and CET1 ratio at 14.1%.

• Net interest income declined 1% YoY due to compressed lending margins, but cost discipline led to a 5% YoY reduction in costs.

• C/I ratio improved to 34.7% in H1 2026, reflecting efficiency gains.

• Profitability remains stable, supported by low credit losses and disciplined cost management.

• NIM for Q2 2026 was 0.76%, with resilient revenues despite margin pressure.