SBAB Bank (SBAB) Q4 2024 earnings summary

Executive summary

• SBAB delivered stable financial results for 2024, with continued growth in lending and deposits, strong credit quality, and high customer satisfaction, despite a challenging market with low growth and high competition.

• Total lending increased by 3.9% to SEK 537.8bn and deposits by 18.9% to SEK 255.9bn year-over-year.

• Return on equity reached 10.4%, exceeding the long-term target of 10%.

• SBAB maintained its position as Sweden's fifth largest mortgage bank and reported the highest customer satisfaction in the sector.

Financial highlights

• Operating profit for 2024 was SEK 2,900m, down 5.5% from SEK 3,070m in 2023, mainly due to lower net interest income and higher costs.

• Net interest income decreased by 2.9% to SEK 5,288m, primarily due to lower deposit margins.

• Net credit losses were SEK 0m (down from SEK 93m), reflecting reduced credit loss provisions.

• Cost/income ratio increased to 35.5% (from 31.0%), and return on equity was 10.4% (down from 11.5%).

• Core Tier 1 capital ratio improved to 12.7% (from 12.3%).

Outlook and guidance

• The board intends to propose a dividend of 40% of net profit, amounting to SEK 913m, in line with the dividend policy.

• Lower inflation and interest rates are expected to support increased housing market activity and economic recovery in 2025.

• SBAB aims to continue growing lending and deposits, with a long-term goal of 10% mortgage market share and 20% in corporate lending by 2030.