Swedbank and SEB in Estonia reported lower profits in the first quarter of 2026 as declining interest income tied to lower market rates offset continued growth in lending.
Swedbank, the commercial bank with the largest market share in Estonia, posted a net profit of EUR 55 million in Estonia in the first three months of 2026. Compared with the same period in 2025, profit declined by EUR 12 million, the bank reported.
Swedbank’s total income in Estonia decreased by EUR 11 million, primarily due to lower interest and net insurance income. Net interest income fell by EUR 6 million as a result of lower market interest rates and loan margins, while other income declined by EUR 5 million due to reduced insurance income.
Swedbank’s expenses decreased by EUR 2 million YoY. The main reason for the drop in expenses was higher support-activity costs in 2025. At the same time, expenses related to personnel, the new headquarters in Tallinn, and services purchased from the Swedbank Group increased. This included higher expenses and investments related to digital solutions.
Estimated credit losses amounted to EUR 2 million in the first three months of the year, compared to EUR 5 million during the same period last year.
In the first three months of the year, Swedbank AS, together with its subsidiaries and group companies operating in Estonia, paid EUR 17.4 million in labor taxes, making it one of the largest payers of labor taxes in Estonia. In addition, Swedbank AS paid EUR 13.6 million in advance corporate income tax.
Loan volumes for Swedbank’s retail customers grew by 6.2%, while business customer loan volumes increased by 10.4%. Deposits grew by 4%.
During the first three months of the year, new loans totaling EUR 331 million were issued to private customers and EUR 524 million to companies.
“From a business perspective, the first quarter of the year was a strong one for Swedbank. Our loan portfolio continues to grow: in the first three months of 2026, we issued new loans totaling over EUR 300 million to private individuals and over EUR 500 million to businesses,” said Olavi Lepp, CEO of Swedbank AS.
The SEB Bank group in Estonia ended the first quarter of the year with a profit of EUR 39.3 million, which was somewhat lower than the EUR 43.3 million recorded in the first quarter of 2025.
The group’s operating income totaled EUR 70.4 million (compared with EUR 74.9 million in the first quarter of 2025), while operating expenses amounted to EUR 22.9 million (EUR 22.1 million in the first quarter of 2025).
SEB Bank increased net expected credit losses by EUR 0.3 million (compared with an increase of EUR 0.9 million in the first quarter of 2025).
Income tax expense totaled EUR 7.9 million (EUR 8.6 million in the first quarter of 2025).
Commenting on the results of SEB’s Estonian units, SEB Bank CEO Allan Parik said that business activity picked up at the beginning of 2026, which also supported SEB’s strong financial performance.
“In recent years, SEB’s focus has been on building an efficient and sustainable business model. We have done a good job developing investment products for retail customers and supporting the growth ambitions of corporate clients,” Parik said.
SEB’s loan portfolio in Estonia grew by 7.6% and now stood at EUR 7.8 billion.
In the first quarter, SEB issued new loans and leases to retail customers worth EUR 197 million, up by 13%.
“Although demand for loans from corporate clients was twice as high as a year ago, the environment remains tense. Transactions continue to be dominated by real estate, energy, and corporate acquisitions,” Parik said.
Deposits at SEB grew by 1.2%, reaching nearly EUR 6.5 billion. Growth is being driven by retail customers, whose deposit volumes at SEB increased by 4.9% compared with last year. (ERR)