SBAB Bank (SBAB) Q1 2026 earnings summary

Executive summary

• Geopolitical uncertainty, interest rate volatility, and inflation risks are impacting economic recovery, housing market activity, and lending margins.

• Operating profit rose to SEK 759m in Q1 2026, mainly due to lower costs and reduced fees, with return on equity at 10.9% and cost/income ratio improved to 33.6%.

• Lending volumes were stable at SEK 544.2bn, while deposits grew 0.8% to SEK 266.8bn.

• Cost-saving initiatives have been launched due to slower than expected revenue growth.

• Sweden's most satisfied customers for both retail and corporate segments, according to SKI 2025.

Financial highlights

• Q1 2026 operating profit rose 12.2% sequentially to SEK 759 mn; return on equity at 10.9%.

• Net interest income increased 1.6% QoQ to SEK 1,290m but declined 3.4% YoY; net interest margin at 0.77%.

• Costs decreased 13.5% QoQ to SEK 450 mn, mainly due to lower headcount, IT, and marketing expenses.

• Loan losses remained minimal, with a 0.00% loan loss ratio in Q1 2026 and net credit losses at SEK -6m.

• Deposits grew 0.8% QoQ to SEK 266.8 bn; lending stable at SEK 544.2 bn.

Outlook and guidance

• Inflation expected to remain below Riksbank's target until spring 2027.

• Wholesale funding for FY 2026 projected at around SEK 70 bn.

• Updated financial targets reaffirmed for 2026: ROE ≥10%, CET1 capital ratio 1–3 percentage points above regulatory requirements, and ordinary dividend of 20–40% of net profit.

• Lending growth is expected to remain subdued due to competitive pressure and macro uncertainty.

• New mortgage rules effective April 2026 are expected to support first-time buyers but may limit additional borrowing.