Sweden's Avarda Bank Q3 loans climb 20%, profit up 29%

Avarda Bank AB

14/10/2026 05:41

Overview
Sweden consumer finance bank's Q3 loans to public rose 20% yr/yr
Q3 operating profit rose 29% yr/yr; EPS up 30%
Everyday Finance segment now 66% of loan portfolio, 77% of operating income

Outlook
Company did not provide specific guidance for future quarters or the full year in the press release

Result Drivers
CREDIT CARD ACTIVITY - Co said increased credit card activity is a key driver of long-term growth, enabling more informed credit decisions and revenue opportunities
APP-USERS GROWTH - Co said strong customer engagement led to a 35% increase in app-users to 593,685
SEGMENT SHIFT - Co said strategic shift from Consumer Lending to Everyday Finance segment continues, with Everyday Finance now accounting for 66% of loan portfolio and 77% of operating income

Company press release: ID:nWkr2dXlmY

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
SEK 3.51
 
Q3 Operating Profit
 
SEK 297.60 mln
 
Q3 ROE
 
28.10%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Avarda Bank AB is SEK229.00, about 16.1% above its October 13 closing price of SEK197.20
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads
Oct 12 - Sweden's Avtech Q3 net sales fall 16% on lower customer usage
Oct 12 - Swedish industrial tech firm Karnell's prelim Q3 sales jump amid strong demand
Oct 13 - Major US banks post solid third quarter loan growth, but see more competition for deposits

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)