Interest in SME lending among Nordic niche banks is increasing as lenders seek new growth opportunities and broader business models, according to a report published by Nordic Credit Rating (NCR) today. SME lending among the banks included in NCR's expanded sample grew by 21% in the 12 months to June 2026, significantly outpacing overall lending growth.
Earnings performance remained strong across the sector during the first half of 2026. Most banks reported improved profitability, supported by loan growth, better scalability and lower credit-loss provisions. Asset quality metrics also continued to improve overall, with declining Stage 2 volumes and lower loss provisions at many of the sample banks.
"Nordic niche banks continue to deliver strong earnings while benefiting from generally improving credit performance," said NCR credit analyst Sean Cotten. "At the same time, we note a growing interest in SME lending among these lenders."
Increasing investments in the SME segment are likely spurred by both competitive and regulatory pressures in consumer finance and a perceived gap in the market left by larger banks. However, it remains uncertain whether market demand matches the rapid expansion of lending capacity, and asset-quality performance will be an important area to monitor as portfolios mature.
Contacts:
Sean Cotten, lead senior analyst, +46735600337, sean.cotten@nordiccreditrating.com
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com