Sparbanken Skåne (SK) Q2 2025 earnings summary

Executive summary

• Operating profit for Q2 2025 was SEK 356m, down from SEK 378m in Q1; H1 2025 profit was SEK 734m, down from SEK 929m year-over-year.

• Net interest income decreased to SEK 507m in Q2 and SEK 1,025m for H1, mainly due to lower market interest rates.

• Expenses excluding credit losses increased, mainly from higher personnel and consulting costs.

• Credit losses had a positive impact, with SEK 45m in Q2 and SEK 69m for H1, reflecting improved macroeconomic conditions.

• Business volume grew to SEK 267bn, with increased deposit and loan volumes, especially in residential mortgages.

Financial highlights

• Net fee and commission income fell to SEK 124m in Q2 and SEK 267m for H1, mainly due to lower securities and loan commissions.

• Cost/income ratio before credit losses rose to 0.49 in Q2 from 0.47 in Q1; return on equity was 10.9% in Q2, down from 11.4% in Q1.

• Allowance ratio for stage 3 loans decreased to 18% from 21% at year-end.

• Loan loss ratio increased to 0.07% in Q2 from 0.02% in Q1.

• CET1 and total capital ratios improved to 29.1% from 24.4% at year-end.

Outlook and guidance

• Swedish economy remains in recession, with recovery expected to begin in H2 2025 but to remain weak into 2026.

• Uncertainty persists due to global political turbulence, trade policy, and geopolitical conflicts.

• The bank expects continued modest lending growth and increased deposit volumes, with a focus on sustainability and climate targets.