SBAB Bank (SBAB) Investor Presentation summary

Business overview and strategy

• 100% owned by the Kingdom of Sweden, focused on Swedish residential mortgages, with SEK 538bn in total lending and SEK 256bn in deposits at year-end 2024.

• Fifth largest mortgage player in Sweden, with operations concentrated in major economic hubs and all products offered online or by phone.

• Strategic goals include ≥10% return on equity, CET1 capital ratio above regulatory requirements, and a cost/income ratio below 30%.

• Customer satisfaction is consistently high, ranking first in SKI surveys for both private and corporate clients.

• Strong brand awareness and value proposition based on accessibility, transparency, and consideration.

Financial performance and targets

• Return on equity for FY 2024 was 10.4%, with a CET1 capital ratio of 12.7% and a cost/income ratio of 35.5%.

• Net interest income for FY 2024 was SEK 5,288m, down 2.9% YoY, while operating profit was SEK 2,900m, down 5.5% YoY.

• Total lending grew 3.9% YoY to SEK 537.8bn, and deposits increased 18.9% YoY to SEK 255.9bn.

• Credit loss ratio remained at 0.00% for FY 2024, reflecting very strong asset quality.

• Dividend policy is based on profit after tax, considering capital structure, with a target payout of ≥40%.

Credit portfolio and asset quality

• Lending portfolio is 68% residential mortgages, 20% property companies, and 12% tenant-owner associations, with average LTV ratios of 59%, 60%, and 32% respectively.

• Asset quality is strong, with low loan losses and a 0.16% share of stage 3 loans at year-end 2024.

• EBA stress tests confirm robust capital position and resilience to adverse scenarios.

• Cover pool totals SEK 405bn, with a weighted average LTV of 53.7% and diversified asset types.

• Conservative underwriting and prudent risk management practices are in place for all lending segments.