Lea Bank (LEA) Q1 2025 earnings summary

Executive summary

• Completed redomiciliation and merger, now operating as Lea Bank AB in Sweden with HQ in Gothenburg, listed on Nasdaq First North Premier Growth Market as of January 2025.

• Q1 2025 marks the first full quarter post-merger, with no prior year Q1 comparables.

• Focused on digital consumer lending and deposits across Sweden, Norway, Finland, Spain, and other EU markets, leveraging a scalable digital platform.

• Share price up 39% since relisting on Nasdaq Stockholm.

• Strategic focus on core business, margin improvement, and new product launches such as credit cards.

Financial highlights

• Q1 2025 profit before tax: 28 MSEK; net profit after tax: 21.1 MSEK; annualized ROE: 6.0% (9.7% adjusted).

• Net interest income: 137 MSEK; interest income: 198.9 MSEK; interest expense: 62.1 MSEK.

• Gross loans increased by 291 MSEK to 7,890 MSEK since merger.

• Net credit losses were 72 MSEK, with an annual loan loss ratio of 3.7% (down from 4.5% previous year).

• Deposits from customers stood at 7,479 MSEK, with a deposit ratio of 103%.

Outlook and guidance

• Prioritizing margin improvement, risk-adjusted growth, and active management of non-performing loans.

• Commercial launch of credit card product anticipated in collaboration with partners.

• Monitoring regulatory changes in Sweden that may affect loan intermediaries and distribution mix.

• Plans to leverage new banking platform for growth and dividend capacity.

• Opportunities for organic growth and potential acquisitions.