Enity Holding AB (CHIX:ENITYs) (Q3 2026) Earnings Call Highlights: Record Net Interest Income …

This article first appeared on GuruFocus.

Release Date: November 05, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Net interest income increased by 11% year-on-year to a record high of SEK 342 million.

• Net interest margin remained stable at around 4.2%, demonstrating disciplined pricing and diversified funding.

• Return on tangible equity was strong at 25% for the quarter and 20% over the last 12 months, in line with financial targets.

• Credit quality improved with declining Stage 2 and Stage 3 loan shares, and the CET1 ratio returned to target at 14.2%.

• Loan book grew by 11% over the last 12 months, with growth driven by all three markets and supported by a stronger Norwegian krona.

Negative Points

• Loan growth adjusted for FX was 5% year-on-year, below the company’s 8-10% target, and market activity remains subdued.

• Credit losses increased to SEK 26 million, with a credit loss ratio of 31 basis points, impacted by write-offs from property sales.

• Net commission income was lower and net financial transactions had a negative mark-to-market impact of SEK 3 million.

• Operating expenses increased year-over-year due to the consolidation of Uno Finance, and are expected to revert to higher levels in Q4.

• The broker business review may lead to divestment, and commission income was disappointing due to constrained lending volumes and challenging market conditions.

Q & A Highlights

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Q: Can you explain the strategic review of the broker holdings, given the recent acquisition of the remaining shares in Uno Finance? Wasn’t the capital impact known beforehand? A: CEO Bjorn clarified that Enity has been a shareholder in Uno Finance since 2020 and in A&O Finance since 2023, so these are not new investments. The acquisition of the remaining Uno shares was a pre-existing commitment. The review is a natural step to assess whether capital tied up in these capital-consuming broker businesses can be deployed more efficiently, either through organic growth in the Nordics or expansion into new markets. No conclusion has been reached, and outcomes could range from continued ownership to partial or full divestment.

Q: How much capital could potentially be released in a divestment of the broker businesses? A: CFO Pontus stated that the broker holdings are mostly intangible assets that must be deducted from the capital base, amounting to around SEK600 million. This deduction was the main reason for the low point in the CET1 ratio following the Uno Finance acquisition. There are also additional risk-weighted elements, but the SEK600 million is the core capital consumption.