Sweden's Riksbank has decided not to make any financial risk provisions or reversals for the 2025 financial year, aiming instead to use the expected profit of around SEK 5.3 billion to strengthen its equity position. Equity stood at SEK 23 billion at end-2025 versus an expected target level of around SEK 64 billion under the Sveriges Riksbank Act, and the Riksbank assessed that adding profits directly to equity is the most effective way to increase balance sheet resilience because equity can absorb losses across all risks, unlike provisions which are limited to specific risks. With no provisions made for 2024 and no previously allocated funds, there are no provisions to reverse and reported provisions for 2025 remain unchanged compared with 2024. The equity target level is adjusted annually by the annual percentage change in the consumer price index, with the December 2025 outcome due to be published by Statistics Sweden on 15 January 2026.
Riksbank 2026-01-09
Sweden's Riksbank decides against risk provisions for 2025 to channel expected SEK 5.3bn profit into equity rebuild
Sweden's Riksbank will not make financial risk provisions or reversals for 2025, opting to use an expected profit of SEK 5.3 billion to bolster its equity position. Equity stood at SEK 23 billion at the end of 2025, below the target of SEK 64 billion under the Sveriges Riksbank Act. The Riksbank believes adding profits directly to equity enhances balance sheet resilience, as equity can absorb losses across all risks.