SBAB Bank (SBAB) Investor Presentation summary

Ownership and business profile

• Fully owned by the Kingdom of Sweden, focusing on Swedish residential mortgages and property loans, with SEK 528 billion in total lending and SEK 241 billion in deposits as of Q2 2024.

• Operates exclusively in Sweden, with lending concentrated in major metropolitan and growth regions, and offers products online or by phone.

• Recognized for high customer satisfaction among both retail and corporate clients, consistently ranking first in industry surveys.

Financial performance and targets

• Return on equity was 10.7% in Q2 2024, with a cost/income ratio of 34.3% and a CET1 capital ratio of 12.1%.

• Total lending grew by 2.7% year-over-year, while deposits increased by 25% year-over-year, raising the deposit-to-loan ratio to 45.7%.

• Financial targets include a long-term return on equity of at least 10%, a cost/income ratio below 30%, and CET1 capital 1-3% above regulatory requirements.

Credit portfolio and asset quality

• Lending is predominantly residential mortgages (67%), with low average LTV ratios (59% for residential, 60% for corporate, 32% for tenant-owner associations).

• Asset quality remains strong, with a credit loss level of 0.02% and a share of stage 3 loans at 0.16% as of June 2024.

• EBA stress tests confirm strong resilience, with minimal negative CET1 impact under adverse scenarios.