Skandiabanken (SBANK) Q1 2025 earnings summary

Executive summary

• Operating profit for Q1 2025 increased to 169 MSEK from 156 MSEK in Q4 2024, with return on equity rising to 9.48% from 7.92%.

• Revenue decreased to 395 MSEK from 407 MSEK sequentially, while costs fell to 223 MSEK from 248 MSEK.

• Mortgage portfolio grew 1% to 112,386 MSEK; green loans showed the highest growth rate in the portfolio.

• Digitalization of loan documentation improved efficiency and customer experience.

Financial highlights

• Net interest income for Q1 2025 was 349 MSEK, down from 361 MSEK in Q4 2024, mainly due to a lower net interest margin of 1.04% (vs. 1.13%).

• Provisions net increased to 42 MSEK from 37 MSEK, while net result from financial transactions was -4 MSEK (vs. 1 MSEK).

• Net profit for the period was 140 MSEK, up from 125 MSEK in Q4 2024.

• Total assets rose 5% to 135,283 MSEK, mainly due to a larger liquidity reserve.

• Deposits from the public decreased 3% to 53,965 MSEK; loan-to-deposit ratio increased to 209%.

Outlook and guidance

• Management expects continued focus on simplicity, sustainability, and transparency, with a priority to establish a clear climate strategy and set concrete climate goals for the mortgage portfolio.

• Participation in the green bond market will be central to the bank's sustainability strategy in 2025 and beyond.

• Swedish inflation is expected to remain between 2–3% in 2025, with the policy rate held at 2.25% for the foreseeable future.