SBAB Bank (SBAB) Q4 2025 earnings summary

Executive summary

• Founded in 1985, 100% owned by the Kingdom of Sweden, and the 5th largest mortgage player in Sweden, focusing on residential mortgages and related savings products.

• Business model centers on collateralized lending, with a strong digital presence and no traditional branches.

• Total lending increased by 1.3% year-over-year to SEK 544.9bn, while deposits grew 3.4% to SEK 264.7bn.

• Operating profit for the year declined 4.7% to SEK 2,764mn, mainly due to lower net interest income and higher costs.

• Strategic goals for 2030 include ≥10% ROE, 10% market share in residential mortgages, and a 50% reduction in emissions intensity.

Financial highlights

• Net interest income declined 2.8% to SEK 5,141mn due to compressed margins; operating profit fell 4.7% to SEK 2,764mn.

• Costs increased 1.0% to SEK 1,927mn, driven by higher personnel expenses.

• Credit loss ratio remained very low at 0.01% for 2025; net credit losses were positive at SEK 57mn.

• CET1 capital ratio improved to 14.2% at year-end 2025, well above the regulatory requirement.

• Liquidity coverage ratio (LCR) at year-end was 225%, and NSFR was 128%.

Outlook and guidance

• Funding needs for 2025 were approximately SEK 90bn, expected to decrease to SEK 70bn in 2026.

• Lending growth is expected to accelerate in 2026 as the economy and housing market recover, supported by low interest rates and regulatory changes.

• Updated financial targets from 2026: ROE ≥10%, CET1 capital ratio 1-3% above regulatory requirement, and ordinary dividend payout of 20-40% of profit.

• Long-term management targets include a cost/income ratio below 30% by 2030.