Skandiabanken (SBANK) Q2 2025 earnings summary

Executive summary

• Stable financial results and continued profitability in the first half of 2025, despite a challenging macroeconomic environment and intense mortgage market competition.

• Mortgage rates were lowered due to a declining interest rate environment and a lower policy rate; deposit volumes increased while lending volumes slightly decreased.

• Underlying earnings remain solid, with ongoing focus on simple, transparent, and sustainable banking services.

• The bank published its first investor report on green assets, highlighting annual energy savings and reduced CO2 emissions.

Financial highlights

• Q2 2025 operating profit was 138 MSEK, down from 169 MSEK in Q1 2025; return on equity was 7.53% (Q1: 9.48%).

• Q2 2025 revenues were 380 MSEK (Q1: 395 MSEK); net interest income was 338 MSEK (Q1: 349 MSEK).

• Costs increased to 240 MSEK in Q2 2025 (Q1: 223 MSEK), mainly due to higher personnel and IT-related expenses.

• For H1 2025, operating profit was 307 MSEK (H1 2024: 335 MSEK); revenues rose 3% to 775 MSEK, while costs increased 9% to 463 MSEK.

• Net credit losses for H1 2025 were -5 MSEK, compared to 11 MSEK in H1 2024.

Outlook and guidance

• The bank remains well positioned for further growth, with a stable capital and liquidity situation.

• Riksbanken's policy rate cut to 2.00% and potential further reductions may stimulate the economy and mortgage market activity.

• Ongoing economic uncertainty and weak housing market conditions are expected to persist.