Sparbanken Skåne (SK) Q1 2025 earnings summary

Executive summary

• Operating profit for Q1 2025 was SEK 378 million, down from SEK 462 million year-over-year and SEK 385 million sequentially, reflecting lower net interest income due to falling market rates.

• The bank maintained a strong financial position, with a core capital ratio of 28.0% and a liquidity coverage ratio of 267%.

• Business volume decreased by 1.7% during the quarter to SEK 260 billion, mainly due to lower fund and insurance volumes amid weak stock market performance.

• The macroeconomic environment remained challenging, with continued recession, high inflation, and increased geopolitical risks impacting both households and businesses.

• Sustainability initiatives advanced, including a green bond impact report showing 11,300 tons of CO2 emissions avoided in 2024 and ongoing work toward net-zero emissions.

Financial highlights

• Net interest income for Q1 2025 was SEK 518 million, down from SEK 619 million year-over-year and SEK 571 million sequentially.

• Net commission income increased to SEK 143 million from SEK 133 million year-over-year, driven by higher securities commissions.

• Costs excluding credit losses rose to SEK -314 million from SEK -288 million year-over-year, mainly due to higher personnel, consulting, and IT expenses.

• Credit losses had a positive impact of SEK 24 million, primarily from reduced provisions for expected credit losses.

• Return on equity was 11.4% for Q1 2025, down from 15.4% a year earlier.

Outlook and guidance

• Economic recovery is expected to be delayed due to persistent global political uncertainty and the impact of new US trade tariffs.

• The bank anticipates continued cautious lending demand and high competition in the lending market.

• The housing market shows signs of improvement, but overall economic uncertainty is expected to keep consumption and investment subdued.