TF Bank (TFBANK) Q4 2025 earnings summary

Executive summary

• Operating profit for Q4 2025 reached SEK 242 million, a 29% increase year-over-year, and full-year profit rose 25% to SEK 855.8 million, driven primarily by the Credit Cards segment and strong loan growth.

• Earnings per share rose 36% to SEK 2.83, with adjusted EPS up 29% to SEK 9.95; a dividend of SEK 5.00 per share is proposed.

• The business continues to scale efficiently, with improved cost/income ratios and strong profitability.

• The company is progressing with its rebranding to Avarda Bank, expanding from a Nordic niche to a pan-European platform.

• The loan portfolio grew 23% year-over-year to SEK 23.7 billion, with Germany as the largest market.

Financial highlights

• Loan book grew 23% year-over-year, reaching close to SEK 27 billion.

• Operating income increased 19% to SEK 2,905 million, with 92% from net interest income.

• Net loan losses rose 21% to SEK 995.8 million, mainly from Credit Cards segment growth.

• Deposits from the public totaled SEK 24.7 billion, with an 18% liquidity reserve.

• Total capital ratio at year-end was 16.1%, down from 16.7% due to dividend deduction.

Outlook and guidance

• Strong opportunities for further growth in Credit Cards are anticipated, especially in Germany.

• New financial targets set: loan portfolio to reach SEK 35 billion by H2 2027, implying 20% annual growth.

• Return on equity target remains well above 20%.