Swedbank Ab Stock Earnings Reports

Swedbank reported a strong Q3 driven by rising income, lower costs and credit impairment reversals. Key financials: return on equity 16%, earnings per share SEK 7.53, cost-to-income 0.35, CET1 ratio 19.7% (about 480 bps buffer over regulatory requirement). Net interest income edged down QoQ (‑0.9%) primarily from lower mortgage rates; timing of NII pressure is driven by central bank cuts (approx. 3 months lag in Sweden, 6 months in the Baltics) and volume growth partially offsets margin effects. Lending growth was broad-based (notably in the Baltics and Swedish mortgages through owned channels); deposits were broadly stable. Asset quality remains solid with credit impairment reversals of SEK 398m in the quarter and a reduced post-model adjustment. Capital relief was partly realized via SREP adjustments (‑40 bps) and partial approval of a non‑maturing deposit model; further IRB model updates are expected next year. Strategic items: ongoing push on Swedbank 15/27 (customer interactions, volume growth, efficiency), acquisition intent for remaining Entercard to create the largest Nordic‑Baltic card business, stake in SB1 Markets launched in Sweden, and SEK 9bn net inflows into Swedbank Robur. Operationally, strict cost control and AI/digital tools are improving availability and advisory capacity. Outstanding uncertainties: remaining U.S. investigations (timing and potential fines unknown) and the outcome/timing of VAT recovery claims. Full‑year 2025 cost guidance: approx. SEK 25.3bn (includes already received VAT recoveries); no further VAT assumed in guidance.