Skandiabanken (SBANK) Q2 2024 earnings summary

Executive summary

• Strong first half of 2024 with stable profitability and increased market share in Swedish mortgage lending; repeated mortgage rate cuts during spring to benefit customers.

• Operating profit for H1 2024 reached 335 MSEK, up 4% year-over-year; return on equity at 8.85%.

• Mortgage volumes grew 3% to 105,300 MSEK since year-end; customer base expanded to 408,000.

• New digital features launched to enhance customer experience, including card blocking in the app and improved portfolio analysis tools.

• Marketing campaign launched to highlight transparent, negotiation-free mortgage rates.

Financial highlights

• Q2 2024 revenues stable at 375 MSEK; operating profit increased to 169 MSEK from 166 MSEK in Q1.

• Net interest income for Q2 rose to 331 MSEK (322 MSEK in Q1); net interest margin improved to 1.09%.

• Costs increased to 221 MSEK in Q2 (205 MSEK in Q1), mainly due to higher personnel and IT development expenses.

• Net credit losses in Q2 were 15 MSEK, reflecting a change in the definition of credit-impaired loans.

• H1 2024 revenues up 1% to 750 MSEK; net interest income up 2% to 653 MSEK; net credit losses for H1 at 11 MSEK.

Outlook and guidance

• Anticipation of further Riksbank rate cuts in H2 2024, potentially boosting housing market activity.

• Market shows early signs of recovery, with expectations of increased mobility and transactions in the housing sector.