Sparbanken Skåne (SK) Q2 2025 earnings summary

Executive summary

• Operating profit for Q2 2025 was SEK 356 million, down from SEK 378 million in Q1 2025; for H1 2025, operating profit was SEK 734 million, a decrease from SEK 929 million in H1 2024.

• Net interest income declined to SEK 507 million in Q2 and SEK 1,025 million for H1, mainly due to lower market rates and compressed margins.

• Provisions for credit losses were positive, reflecting reduced reserves due to improved macroeconomic conditions.

• The bank maintained a strong focus on sustainability, setting targets for climate neutrality by 2035 (operations) and 2045 (lending/investments).

• Business volume increased to SEK 267 billion, with growth in both lending and deposits.

Financial highlights

• Net interest income for H1 2025 was SEK 1,025 million, down 16% year-over-year.

• Net commission income for H1 2025 was SEK 267 million, slightly lower than SEK 272 million in H1 2024.

• Costs excluding credit losses rose to SEK 643 million in H1 2025, up from SEK 579 million in H1 2024, mainly due to higher personnel and IT expenses.

• Positive credit losses amounted to SEK 69 million in H1 2025, compared to SEK 2 million in H1 2024, driven by reduced reserves.

• Return on equity was 10.9% as of June 2025, compared to 15.2% a year earlier.

Outlook and guidance

• The Swedish economy remains in a prolonged recession, with recovery expected to begin in H2 2025 but to remain weak through 2026.

• The bank expects continued cautious demand for credit from both households and businesses, with some improvement in the housing and construction sectors.

• Riksbanken is anticipated to further lower the policy rate in H2 2025.