SBAB Bank (SBAB) Q3 2026 earnings summary

Executive summary

• Jan–Sep operating profit was SEK 2.059bn, down 1.4% YoY; ROE was 9.7%, with exceptionally low credit losses and continued cost discipline.

• Lending rose 1.1% YoY to SEK 550.8bn and deposits increased 4.6% to SEK 277.0bn; compressed lending margins weighed on earnings.

• Q3 lending grew 0.6% QoQ, mainly from residential mortgages, while corporate and housing-association lending contracted; competition remained intense.

• Management maintained cost controls and strategic changes to improve customer experience, efficiency and competitiveness; investment activity is expected to rise somewhat in Q4.

Financial highlights

• Jan–Sep net interest income was SEK 3.762bn, down 2.8% YoY; Q3 was SEK 1.201bn, down 5.5% QoQ, mainly due to higher deposit costs and lower lending margins.

• Jan–Sep costs fell 2.9% YoY to SEK 1.366bn; Q3 costs were SEK 456m, down 0.9% QoQ.

• Jan–Sep operating profit was SEK 2.059bn, down from SEK 2.088bn; Q3 operating profit was SEK 640m, down from SEK 660m QoQ as lower NII and financial transaction results outweighed lower credit losses and fees.

• Q3 net income was SEK 506m versus SEK 520m QoQ; Jan–Sep net income was SEK 1.625bn versus SEK 1.643bn YoY.

• Jan–Sep loan losses were a SEK 12m net recovery; Q3 net credit losses were a positive SEK 32m.

Outlook and guidance

• Estimated 2026 funding needs were revised down from ~SEK 70bn to ~SEK 60bn; close to all full-year needs were secured by end-Q3.

• October forecasts put Swedish GDP growth at 2.5% in 2026 and 2.6% in 2027, CPIF inflation at 2.8% and 3.4%, and average policy rates at 1.79% and 2.47%, respectively.

• 2026 financial targets include ROE of at least 10%, CET1 1–3 percentage points above supervisory requirements, and an ordinary dividend payout ratio of 20–40% of annual profit after tax, subject to capital and regulatory needs.

• Strategic 2030 ambitions include residential mortgage market share of 20%, corporate market share of 10%, C/I below 30% and CET1 1–3 percentage points above requirements.

• Investment activity is expected to increase somewhat in Q4 while cost efficiency and control remain priorities.