Swedbank AS reported a net profit of €128 million for the first half of the year, €54 million less than the same period last year — a decrease of nearly 30 percent.

SEB Pank Group ended the first half of 2025 with a profit of €86.2 million, which is €7.7 million less than in the first six months of last year, representing an annual decline of 8.2 percent.

Swedbank's volumes increased

According to a press release from Swedbank AS covering the second quarter of 2025, the bank's private customer loan volumes grew by 4 percent year over year, while business customer loan volumes increased by 6 percent. Deposits grew by 4 percent.

In the first six months of the year, €558 million in new loans were issued to individuals and €684 million to businesses.

The company's revenues declined by €48 million, mainly due to reduced interest income.

Net interest income fell by €56 million, driven by lower market interest rates and loan margins.

Service fee income dropped by €4 million due to a change in package pricing in the last quarter of 2024.

Other income rose by €12 million due to increased insurance revenues.

Expenses rose by €16 million due to higher personnel expenses, support functions, and the cost of services purchased from the Swedbank Group, including increased spending and investments in digital solutions.

Expected credit losses in the first half of 2025 totaled €2 million, the same figure as in the corresponding period of 2024.

Swedbank AS's net profit for the first six months of 2025 was €128 million. Compared with the previous year, profit fell by €54 million.

In the first six months of 2025, Swedbank AS, together with its subsidiaries and group companies operating in Estonia, paid €72 million in corporate income tax and €35 million in labor taxes. This makes it one of Estonia's largest labor tax contributors, the bank noted in its press release.

"Swedbank had a successful second quarter. Although the economic environment was volatile both in the first half of the year and in the second quarter, and declining interest rates impacted the entire banking sector's results, Swedbank's second-quarter financial performance remained stable and strong. One positive development was that falling interest rates boosted activity in the real estate and housing loan market, and during the quarter we also observed some increase in business lending, supported by higher production and export volumes," said Swedbank AS CEO Olavi Lepp.

SEB's operating income declined by nearly one-fifth

SEB Pank Group ended the first half of 2025 with a profit of €86.2 million; in the first half of 2024, the profit was €93.9 million, the bank reported.

The group's operating income totaled €148.4 million, compared with €183.1 million in the first half of 2024—a decrease of 18.9 percent. The group's operating expenses amounted to €44.4 million in the first six months of this year, compared with €42.9 million in the same period last year.

The group's expected net credit losses increased by €0.7 million, whereas in the first half of 2024, those losses had been reduced by €4.4 million.

Income tax totaled €17.1 million (compared with €50.7 million in the first half of 2024).

Based on tax declarations for the first half of 2025, SEB Group paid a total of €33.5 million in various taxes to the Estonian state.

SEB will publish a more detailed overview of its financial results at the end of July.

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