Skandiabanken Limited Company, part of Sweden's Skandia Group, has reported “strong” financial results in the first quarter of 2025, with a rise in its operating profit from SEK 156m in the fourth quarter of 2024 (Q4) to SEK 169m in the first quarter of 2025 (Q1).

According to its results, its return on equity also increased in Q1, up from 7.92 per cent in Q4 2024 to 9.48 per cent in Q1 2025.

In addition to this, the company’s costs decreased in Q1 2025 to SEK 223m.

Commenting on these results, Skandiabanken CEO, Arvid Krönmark, said: “Skandiabanken delivered a strong financial result for the Q1 with an operating profit of SEK 169m and a return on equity of just over nine per cent.”

However, its results also showed that revenues were down in Q1, from SEK 407m in Q4 2024 to SEK 395m in Q1 2025.

The results also showed that The Common Equity Tier 1 capital ratio increased by 1 percentage point from 17.8 at the turn of 2024 to 17.9 in Q1 2025.

Krönmark explained that a key priority for the company this year is to establish a clearer climate strategy and to continue its growth journey with a focus on “simplicity, sustainability and transparency”. 
  
He said the company will create an overall strategy for how it can best manage climate change within its business, with its green bond framework playing a central part of this strategy.

“We are very pleased to report that our green asset base grew by over 50 per cent in 2024, exceeding our expectations. This reinforces our belief that our sustainability focus is the right way forward and gives us the opportunity to expand our green bond program going forward,” he stated.

However, Krönmark noted the “great uncertainty” in the world and suggested that future developments are "extremely difficult" to assess.

“The Swedish inflation and economic outlook are expected to largely hold up, however, Sweden, which is a small and open economy, is also affected by the rest of the world. The recovery in the Swedish economy has begun, although the economic situation is still weak,” he said.

“The inflation rate is expected to be between 2 and 3 per cent this year, before gradually falling and stabilising at the target of 2 per cent. The executive board of the Riksbank has decided to keep the policy rate unchanged at 2.25 per cent, with the assessment that this level will remain unchanged for some time to come.”

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