WEBULL
WebtradeDownload

Lea Bank (OM:LEA) Stock Sees Profit Growth But Credit Risk Still Dominates

Simply Wall St · 1d ago

Lea Bank stock came into this earnings print with a mixed scorecard. The price closed at SEK12.64 on Friday, only slightly higher over the past month and still down over the past quarter. The headline in the numbers is earnings strength. Second quarter basic earnings per share landed at 0.34 SEK on revenue of 100.88 million SEK and trailing basic earnings per share reached 1.26 SEK.

For a bank that trades on a P/E of 10x against higher sector multiples, that earnings profile is what the market is now weighing against its known credit risks.

Like Lea Bank's earnings profile but want banks with a similar value style and a stronger overall setup? Take a look at our screener of list of solid balance sheet and fundamentals stocks (432 results).

Q2 2026 Earnings Summary

  • Revenue (Q2 2026 vs Q2 2025): 100.88 million SEK vs 88.415 million SEK (up about 14.2%).
  • Net Income (Excl. Extra Items, Q2 2026 vs Q2 2025): 33.211 million SEK vs 28.348 million SEK (up about 17.2%).
  • Basic EPS (Q2 2026 vs Q2 2025): 0.34 SEK vs 0.296784 SEK (up about 14.5%).
  • Non Performing Loans ratio (Q1 2026 trailing vs Q2 2025 trailing): 16.8% of total loans vs 17.4% of total loans (indicating a marginal improvement in credit quality).

Prefer clean charts instead of another wall of earnings tables and credit ratios? See Lea Bank's full valuation picture presented in a simple visual dashboard through our company report for Lea Bank.

OM:LEA Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026
OM:LEA Trailing 12-Month Revenue & Expenses Breakdown as at Aug 2026

Lea Bank earnings momentum and cautious optimism

For a bullish view, Lea Bank’s report gives you some support. Revenue and net income excluding extra items both moved higher year on year and basic EPS also increased. That points to a business model that is still converting its loan book into earnings, despite a demanding unsecured focus. The slight improvement in the non performing loans ratio suggests credit risk is not rapidly escalating. Together, the direction of growth and credit quality fits a cautiously positive take on the bank’s digital consumer and cross border strategy.

Credit risk, share performance and the Lea Bank bear case

Bears focused on unsecured consumer exposure still have points to watch. The non performing loans ratio sits at 16.8% of total loans, which keeps asset quality firmly in the spotlight even if it has inched lower. The share price is down about 12% over 90 days, which shows lingering concern despite better earnings. That mix indicates that credit and cycle risk remain central to the Lea Bank story. The latest numbers cool the most extreme downside fears but do not remove the core risk debate around this lender’s portfolio.

After a 16.8% bad loans ratio and only a 50% allowance, you may want to review our independent risk analysis for Lea Bank which shows 3 important warning signs

Take Control of Your Next Move

If Lea Bank’s mix of earnings strength, value style P/E and elevated credit risk has caught your eye, register for free with Simply Wall St and add it to a Watchlist to track price against fair value and wait for a setup that fits your plan. Once you are invested, use the Portfolio Command Center to keep your holdings organised and focus on the most important updates instead of day to day noise. For a broader view, tap into the Community to see how other investors are thinking about banks with similar risk and return profiles. That way you can surface potential catalysts and risks early and stay ahead of the market.

Curious About Alternative Stock Paths

Fresh ideas do not stay under the radar for long. New themes can build breakout momentum while others start dropping off. Scan these curated shortlists before the crowd and act now.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.