Ikano Bank (IKANO) H2 2024 earnings summary

Executive summary

• Ingka Group completed its acquisition of Ikano Bank in October 2024, making it a wholly owned subsidiary and enabling closer integration with IKEA's customer base and business strategy.

• The bank reported a full-year operating result of SEK -152m, an improvement from SEK -303m the previous year, mainly due to non-recurring income from VAT recovery.

• Adjusted for non-recurring items, the bank remains loss-making, with profitability impacted by large investments in digital platforms and infrastructure.

• The acquisition of a SEK 3.4bn consumer loan portfolio from Nordnet Bank added 23,000 new customers and contributed to loan growth.

Financial highlights

• Total operating income increased by 6% year-over-year to SEK 6,950m (6,552m).

• Net interest income (excluding leasing) decreased by 5% to SEK 2,067m (2,176m) due to higher interest expenses.

• Net commission income fell 17% to SEK 240m (288m), mainly from lower transaction volumes on card products.

• Loan losses rose 25% to SEK 941m (754m), driven by the acquired loan portfolio and changes in recovery models.

• Operating expenses increased 1% to SEK 6,161m (6,101m), reflecting higher IT and amortisation costs.

• Net result for the year was SEK -186m (previous year: -317m).

Outlook and guidance

• Management plans to intensify efforts to improve profitability and operational efficiency in 2025.

• The bank remains well-capitalised and liquid, supporting continued investment in new products and digital infrastructure.

• Macroeconomic uncertainty and competitive pressure in both lending and deposit markets are expected to persist.