Avarda Bank (AVARDA) Q3 2025 earnings summary

Executive summary

• Operating profit for Q3 2025 reached SEK 230.9 million, a 21% increase year-over-year, with earnings per share rising to SEK 2.70 from SEK 2.17, driven primarily by the Credit Cards segment and strong growth in Germany.

• Loans to the public grew 20% year-over-year to SEK 22,797 million, with new lending up 32% to SEK 25,440 million.

• The business is scaling efficiently, with improved cost/income ratios and a continued focus on profitable growth.

• Strategic transformation continues, including a planned rebranding to Avarda Bank AB and expansion into pan-European markets.

• The Board proposed a name change to Avarda Bank AB, reflecting the transformation from a Nordic niche bank to a pan-European credit and payment platform.

Financial highlights

• Operating income for Q3 2025 was SEK 748 million, with a risk-adjusted margin of 8.9%.

• Operating income rose 18% year-over-year to SEK 2,106 million, with an improved operating income margin of 13.0%.

• Credit Cards loan book grew 41% year-over-year, surpassing SEK 10 billion.

• Net interest income increased by 18% to SEK 1,943 million, while net fee and commission income grew 23% to SEK 161 million.

• Return on equity was 25.0% in Q3 2025 and 22.7% for the period, with total capital ratio at 17.4%.

Outlook and guidance

• Continued execution of the commercial plan with a pan-European focus and ongoing portfolio build-up with major retailers in Ecommerce Solutions.

• The bank aims to achieve a loan portfolio of SEK 35 billion by the second half of 2027 while maintaining a return on equity well above 20%.

• All capital ratios are targeted to exceed regulatory requirements by at least 2.5 percentage points.

• Nordic Consumer Lending to be consolidated into TF Bank Nordic.

• Strong capital position supports further growth and shareholder value creation.