SBAB Bank (SBAB) Q2 2026 earnings summary

Executive summary

• Founded in 1985, 100% owned by the Kingdom of Sweden, and the fifth-largest mortgage lender in Sweden with a low-risk residential mortgage portfolio.

• Consistently ranked #1 in customer satisfaction for both residential and property loans for 7-8 consecutive years.

• Proven service model with online and phone-based offerings, no traditional branches, and a focus on metropolitan and growth regions.

• Total lending increased by 0.6% to SEK 547.5bn and deposits rose by 2.6% to SEK 273.6bn compared to the previous quarter.

• Operating profit decreased to SEK 660m from SEK 759m, mainly due to lower net financial transaction results and higher imposed fees.

Financial highlights

• Operating profit for Jan-Jun 2026 was SEK 1.4 bn, with a return on equity of 10.1%.

• Net interest income declined 1.2% YoY due to compressed lending margins, while costs decreased 4.6% YoY.

• Lending grew 1.2% YoY to SEK 547.5 bn; deposits increased 4.3% YoY to SEK 273.6 bn.

• Net interest income fell to SEK 1,271m (from SEK 1,290m) due to calendar effects and slightly lower lending margins.

• Net credit losses rose to SEK 14m (from SEK 6m), with confirmed losses at SEK 6m (from SEK 5m).

Outlook and guidance

• Financial targets for 2026 include ROE ≥10%, C/I ratio below 30%, and CET1 above requirement by 1-3%.

• Strategic ambitions for 2030: 15% market share in residential mortgages, 20% in corporates, and 50% emission reduction.

• Ordinary dividend policy is set at 20-40% of annual profit after tax, considering capital structure and growth plans.

• The bank expects continued strong competition and plans to increase investment pace to maintain long-term competitiveness.

• Funding needs for 2026 estimated at SEK 70 bn, with regular benchmark issuances planned.