SBAB Bank (SBAB) Investor Presentation summary

Business overview and strategy

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

• Fifth largest mortgage player in Sweden, with SEK 545 bn in total lending and SEK 265 bn in deposits as of Q3 2025.

• Strategic goals to 2030 include ≥10% return on equity, ≥40% customer satisfaction, and a cost/income ratio below 30%.

• High customer satisfaction, ranking first in SKI surveys for both private and corporate lending segments.

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

Financial performance and targets

• Return on equity at 9.6% and CET1 capital ratio at 14.8% as of Q3 2025, both above long-term targets.

• Net interest income for Jan–Sep 2025 was SEK 3,871 mn, down 2% YoY, mainly due to lower deposit margins.

• Cost/income ratio at 36.2% for Jan–Sep 2025, with ongoing investments in IT, digitalization, and regulatory compliance.

• Credit loss ratio remains low at 0.01%, reflecting a low-risk, collateralized loan book.

• Increased funding needs in 2025, with SEK 90 bn planned issuance, up from SEK 35 bn in 2024.

Credit portfolio and asset quality

• Lending portfolio is 69% residential mortgages (average LTV 59%), 19% property companies, and 11% tenant-owner associations.

• Asset quality remains strong, with a 0.12% share of stage 3 loans and prudent underwriting standards.

• Cover pool for covered bonds is SEK 420 bn, with a weighted average LTV of 53.9%.

• Stress tests confirm resilience, with minimal CET1 impact in adverse scenarios.