Swedbank Ab Stock Earnings Reports

Swedbank reported a strong Q2 with profit of SEK 7.2 billion, adjusted return on equity of 15.5% (14.2% including SEK 860m extraordinary restructuring costs) and earnings per share of SEK 6.37. The bank delivered loan growth across its core markets (mortgages up ~3% in local currency; Sweden front‑book market share ~20% in own channels during April–May) and strong asset‑management inflows (Swedbank Robur net inflows SEK 22bn; AUM SEK 2.9tn). Net interest income rose modestly q/q but faces margin pressure from competition and timing effects as funding reprices ahead of asset repricing (asset repricing lag ~3 months Sweden / ~6 months Baltics). Deposit trends were positive (notably private deposits and Baltic deposit inflows), and trading/treasury delivered elevated net gains. Credit quality remained resilient: total credit impairments SEK 313m (6 bps), with some stage migrations tied to a few corporate customers and updated macro assumptions. Capital and liquidity are strong: CET1 ratio 17.4% (buffer ~260 bps over requirements) and both Fitch and Moody’s upgraded ratings. Swedbank reached a $50m settlement with NY DFS, closing the remaining historical U.S. investigations. The bank is progressing its Swedbank 15/27 plan and a restructuring program: SEK 860m of SEK 1.3bn extraordinary costs were booked in Q2, cost guidance for 2026 is unchanged at SEK 27.5bn (excl. extraordinary costs and FX), FTEs are expected to be ~16,800 by end‑2027, and run‑rate savings of SEK 1bn are expected once changes are fully implemented (by end‑2028). Management flagged continued uncertainty around IRB model approvals (Swedish and Baltic) and noted Entercard and PayEx sales processes (Entercard sale expected to reduce NII by ~SEK 600m and add ~1–2 bps to group cost of risk while owned).