SBAB Bank (SBAB) Q1 2025 earnings summary

Executive summary

• Achieved strong growth in residential mortgages and maintained best-in-class asset quality amid a competitive market and margin pressure.

• Lending increased by 0.5% quarter-over-quarter and 3.7% year-over-year to SEK 540.4bn, while deposits decreased 0.3% QoQ but increased 10.5% YoY to SEK 255.0bn.

• Operating profit declined 2.9% QoQ and 11.8% YoY to SEK 710mn, mainly due to lower net result from financial transactions.

• Return on equity at 10.1%, down from 11.9% YoY; cost/income ratio improved to 35.4% from 38.5% QoQ.

• Strengthened capital position following Basel 4/CRR 3 implementation, with CET1 capital ratio rising to 14.4%.

Financial highlights

• Net interest income was SEK 1,335mn, down 0.3% QoQ and 2.7% YoY, mainly due to higher deposit guarantee fees and lower deposit margins.

• Net result from financial transactions was SEK -3m, down from SEK 73m previous quarter and SEK 40m YoY.

• Costs fell to SEK 472m, down 13.2% sequentially, mainly due to lower IT costs and one-off depreciation in the previous quarter.

• Net credit losses were SEK 6m, compared to a net recovery of SEK 5m previous quarter and SEK 23m loss YoY; credit quality remains strong.

• Total assets increased to SEK 694.5bn, with a liquidity coverage ratio of 309% and NSFR of 132%.

Outlook and guidance

• Funding guidance for 2025 set at approximately SEK 90bn, with front-loaded issuance to address higher needs and redemptions.

• The bank expects continued uncertainty due to global trade tensions and volatile financial markets, but maintains a strong capital and liquidity position.

• Mortgage market growth is expected to gradually improve as the economy recovers, but competition remains intense and margins are under pressure.

• Long-term targets include a return on equity of at least 10% and a 10% mortgage market share by 2030.