SBAB Bank (SBAB) Investor Presentation summary

Ownership and business profile

• Fully owned by the Kingdom of Sweden, focusing on Swedish residential mortgages and ranking as the 5th largest mortgage player in the country.

• Operates exclusively in Sweden with SEK-denominated lending, primarily in metropolitan and growth regions.

• No traditional branches for retail; services are provided online or by phone.

• Two main business areas: Retail and Corporate Clients & Tenant-Owners' Associations.

• Recognized for high customer satisfaction in both retail and corporate segments.

Financial performance and targets

• Total lending reached SEK 535 billion at Q3 2024, up 3.3% YoY; deposits at SEK 248.1 billion, up 24% YoY.

• Return on equity at 10.5% for Jan–Sep 2024, with a cost/income ratio of 34.4%.

• CET1 capital ratio at 12.4%, well above regulatory requirements.

• Financial targets include RoE ≥10%, CET1 and total capital ratios above regulatory minimums, and a cost/income ratio below 30%.

• Increased funding needs in 2025, estimated at SEK 85 billion.

Credit portfolio and asset quality

• Lending portfolio is 67% residential mortgages, 20% property companies, and 13% tenant-owners' associations.

• Average LTV for residential mortgages is 59%; for tenant-owners' associations, 32%.

• Asset quality remains strong with a low share of stage 3 loans (0.17%) and minimal credit losses.

• Prudent underwriting and conservative risk management practices.

• EBA stress tests confirm strong resilience and low risk profile.