Skandiabanken (SBANK) Q3 2024 earnings summary

Executive summary

• Operating profit for Q3 2024 was 168 MSEK, nearly unchanged from Q2, with stable profitability and 7% growth in operating profit for the first nine months year-over-year.

• Return on equity for Q3 was 8.38%, and for the nine-month period 8.70%.

• Mortgage volumes increased 6% since year-end, reaching 107,643 MSEK.

• Customer satisfaction remains high, with a top-three ranking in the Swedish Quality Index.

Financial highlights

• Q3 2024 income was 372 MSEK, down 3 MSEK sequentially; costs fell to 197 MSEK from 221 MSEK.

• Net interest income for Q3 was 326 MSEK, with a net interest margin of 1.05%.

• Provisions net for Q3 was 38 MSEK; net result from financial transactions was 1 MSEK.

• Net credit losses for Q3 were -7 MSEK, reflecting a change in the definition of impaired loans.

• For Jan–Sep 2024, operating profit rose to 503 MSEK (+7% YoY), with income up 4% to 1,122 MSEK and costs up 5% to 623 MSEK.

Outlook and guidance

• Swedish inflation is low and in line with central bank targets; further rate cuts are expected, supporting household finances.

• Swedish economic growth is expected to pick up in 2025, though risks remain from geopolitics, currency, and the US election.

• Housing market activity is recovering, with stable prices and increased mortgage applications.