Sweden Herald - Latest Sweden News | Bank profitability under pressure after decline in second half of 2025 by Sweden Herald
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Bank profitability in Sweden weakened in the second half of 2025, according to the Swedish Financial Supervisory Authority’s (FI) Bank Barometer, which cites lower net interest and financial income alongside rising costs as the main drivers. While seven large banks hold just over 80 % of public lending, they lost market share during this period, with gains going to mortgage banks, savings banks and consumer‑credit firms. Overall lending to the public rose modestly, up 0.9 % in the fourth quarter of 2025 compared with the same quarter a year earlier, down from a 1.7 % increase recorded in the second quarter.
