Lea Bank (LEA) Q2 2025 earnings summary

Executive summary

• Achieved strong loan book growth in Q2 2025, with gross loans increasing by 572 MSEK to 8,461 MSEK, driven by demand across all core markets.

• Operating profit reached 33.8 MSEK and net profit was 28.3 MSEK, both up from Q1 2025, reflecting improved profitability and operational efficiency.

• Interest income rose to 206.5 MSEK and net interest income to 147.2 MSEK, both increasing sequentially.

• Completed successful issuance of Additional Tier 1 (AT1) and Tier 2 (T2) capital, optimizing the capital structure and supporting future growth.

• Paid a dividend of 172 MSEK (SEK 1.80 per share) during the quarter.

Financial highlights

• Net interest income reached 147.2 MSEK, with a net interest margin of 6.3%.

• Operating profit for Q2 2025 was 33.8 MSEK, with an annualized ROE of 8.5% (13.8% adjusted for excess capital).

• Cost/income ratio improved to 34.6% in Q2 2025, reflecting stabilizing operating expenses post-redomiciliation.

• Loan losses for the quarter were 69.6 MSEK, with a loan loss ratio of 3.4%, continuing a positive trend.

• Deposit base expanded to 7,936 MSEK, and liquidity position remained robust with 1,599 MSEK in liquid assets.

Outlook and guidance

• Focus remains on increasing margins, active management of non-performing loans, and leveraging the new Swedish banking platform for profitable growth.

• The bank aims to maintain dividend capacity while pursuing growth and optimizing risk-reward.

• Continued expansion in Sweden, Norway, Finland, and Spain, with scalable international operations.