SBAB Bank (SBAB) Investor Presentation summary

Business model and market position

• Focuses on collateralized lending in Sweden, mainly residential mortgages, with no traditional branches and strong digital presence.

• Fifth largest mortgage player in Sweden, with SEK 371bn in residential mortgages and significant market shares in property companies and tenant-owner associations.

• Lending is concentrated in metropolitan and growth regions, targeting both retail and large corporate clients.

• Strong brand awareness and high customer satisfaction, ranking first in SKI surveys for both private and corporate lending segments.

• Value proposition centers on accessibility, transparency, and customer care, with a growing share of deposits in the funding mix.

Financial performance and targets

• Total lending reached SEK 541bn and deposits SEK 262bn as of June 2025.

• Return on equity for Jan-Jun 2025 was 9.7%, with a cost/income ratio of 36.7% and a CET1 capital ratio of 14.5%.

• Net interest income declined 4.9% YoY in H1 2025, mainly due to lower lending and deposit margins.

• Expenses increased 5.0% YoY in H1 2025, driven by investments in IT, regulatory compliance, and digitalization.

• Owner's long-term targets include ≥10% ROE, CET1 ratio 1-3% above regulatory requirement, and cost/income ratio below 30% by 2030.

Credit portfolio and asset quality

• Lending portfolio is 68.7% residential mortgages (average LTV 58%), with low exposure to consumer loans.

• Asset quality remains strong, with a credit loss ratio of 0.01% and share of stage 3 loans at 0.13% as of June 2025.

• Prudent underwriting criteria and stress-tested affordability assessments support resilience.

• Cover pool is diversified, with a weighted average LTV of 53.7% and significant over-collateralization.