Swedbank (SWED.A) AI Stock Analysis

• Market Cap: kr367.38B
• Dividend Yield: 6.87%
• Average Volume (3M): 1.44M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.94
• Revenue Growth: -14.95%
• EPS Growth: -4.73%
• Country: SE
• Employees: 16,933
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 7.53
• Shares Outstanding: 1,132,005,700
• 10 Day Avg. Volume: 1,629,072
• 30 Day Avg. Volume: 1,444,211
• PEG Ratio: 3.34
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 1.71
• P/FCF Ratio: 3.05
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: kr282.57
• Price Target Upside: -13.75% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: kr325.00 ▼(-0.79% Downside)

Swedbank's strong financial performance and attractive valuation are the primary drivers of its overall score. The bank's robust revenue growth and profitability, combined with a high dividend yield and low P/E ratio, make it a compelling investment. Technical analysis indicates moderate strength, supporting a positive outlook. However, the high leverage and cash flow volatility warrant careful monitoring.

Swedbank Business Overview & Revenue Model

Company Description

Swedbank AB (publ) provides various banking products and services to individuals and companies. The company operates through Swedish Banking, Baltic Banking, and Large Corporates & Institutions segments. It offers savings accounts, mutual funds and insurance savings, pension savings, institutional asset management, and other savings and investment products; private residential lending, consumer financing, corporate lending, leasing, other financing products, trade finance, and factoring services; and current accounts, cash handling, debit and credit cards, card acquiring, other payment products, as well as domestic, international, mobile, and document payments. The company also provides equity trading, structured products, corporate finance, custody services, fixed income and currency trading, and other capital market products; and administrative services, treasury operations, real estate brokerage and management, legal services, safe deposit boxes, and others. In addition, it offers asset management, as well as life insurance and pension services; investment and trading services, including currency, fixed income, and equity and related derivatives services, as well as structured products; advisory and investment banking products and services, such as corporate financing, debt capital market, leveraged finance, and loans and syndication; and transaction banking services comprising cash management, trade finance, securities, commercial payments, account, and clearing and settlement services. Further, the company provides telephone, Internet, and mobile banking services. The company operates 153 branches in Sweden, 17 branches in Estonia, 21 in Latvia, and 42 in Lithuania. It also has operations in Norway, Finland, Denmark, China, the United States, and South Africa. The company was formerly known as ForeningsSparbanken AB and changed its name to Swedbank AB (publ) in September 2006. Swedbank AB (publ) was founded in 1820 and is headquartered in Sundbyberg, Sweden.

How the Company Makes Money

Swedbank generates revenue through various key streams, primarily from interest income, fees, and commissions. The bank earns interest income by lending to customers at higher rates than the interest it pays on deposits. Additionally, it charges fees for services such as account maintenance, transaction processing, and financial advisory. Swedbank also benefits from asset management fees for managing investment funds and portfolios for individual and institutional clients. Significant partnerships with businesses and governmental entities enhance its service offerings and drive additional revenue. Furthermore, Swedbank's engagement in sustainable finance initiatives positions it favorably to attract customers seeking responsible investment options, contributing to its earnings.

Swedbank Financial Statement Overview

Summary

Swedbank demonstrates strong revenue and profit growth with excellent margins, underscoring its effective operations in the banking industry. The balance sheet reflects a well-capitalized institution with high leverage, typical for the sector, yet manageable given current profitability. Cash flow statements show some volatility, but overall liquidity and cash generation remain solid. Swedbank's financials position it well for sustained performance, although attention to leverage and cash flow consistency is advisable.

Income Statement

Swedbank has demonstrated robust revenue growth, with a notable increase of 58.7% from 2024 to TTM (Trailing-Twelve-Months). The gross profit margin remains extremely high at 99.6%, indicating efficient cost management. Net profit margin is solid at 29.3%, driven by strong profitability. EBIT margin is also strong at 38.4%. These metrics highlight Swedbank's effective operational performance and profitability, positioning it well within the banking industry.

Balance Sheet

Swedbank's balance sheet is characterized by a high debt-to-equity ratio of 3.76, indicating significant leverage, which is typical for banks. However, the bank maintains a healthy equity ratio of 6.5%, reflecting a strong capital base. Return on equity is robust at 17.3%, showcasing effective use of shareholder equity to generate profits. Overall, Swedbank's balance sheet shows stability but relies heavily on leverage, which could pose risks if not managed carefully.

Cash Flow

The cash flow analysis reveals a significant decline in operating cash flow compared to prior periods, but the current free cash flow of 43.8 billion is a positive indicator of liquidity. The operating cash flow to net income ratio is 1.28, reflecting solid cash generation relative to net income. Despite recent fluctuations, the cash flow position remains strong, providing Swedbank with the financial flexibility needed for future growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	124.37B	144.06B	131.14B	64.54B	49.66B	51.86B
Gross Profit	69.12B	73.33B	72.25B	51.29B	46.70B	45.09B
EBITDA	43.94B	47.15B	45.63B	29.58B	27.50B	18.36B
Net Income	33.07B	34.87B	34.13B	21.36B	20.87B	12.93B
Balance Sheet
Total Assets	3.13T	3.01T	2.86T	2.85T	2.75T	2.59T
Cash, Cash Equivalents and Short-Term Investments	0.00	325.60B	252.99B	365.99B	360.15B	293.81B
Total Debt	1.05T	923.10B	873.63B	881.36B	808.09B	770.68B
Total Liabilities	2.91T	2.79T	2.66T	2.68T	2.59T	2.44T
Stockholders Equity	217.74B	218.87B	198.76B	176.06B	161.67B	155.17B
Cash Flow
Free Cash Flow	57.32B	80.41B	-146.00B	-18.98B	49.16B	108.87B
Operating Cash Flow	57.82B	80.82B	-145.15B	-18.62B	49.41B	109.24B
Investing Cash Flow	-580.00M	-147.00M	-418.00M	691.00M	628.00M	1.38B
Financing Cash Flow	-12.85B	-12.64B	32.17B	10.02B	14.15B	-8.70B

Swedbank Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 327.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:SWED.A, the sentiment is Positive. The current price of 327.6 is above the 20-day moving average (MA) of 315.05, above the 50-day MA of 302.05, and above the 200-day MA of 267.58, indicating a bullish trend. The MACD of 7.19 indicates Negative momentum. The RSI at 76.11 is Negative, neither overbought nor oversold. The STOCH value of 79.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:SWED.A.

Swedbank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWED.A	74 Outperform	kr367.38B	11.14	15.50%	6.87%	-14.95%	-4.73%
SEB.A	71 Outperform	kr399.01B	12.71	13.97%	4.41%	-13.83%	-12.61%
AZA	68 Neutral	kr53.80B	20.47	42.92%	3.34%	7.33%	23.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SHB.A	67 Neutral	kr272.54B	10.94	12.67%	11.24%	-18.75%	-11.69%
SAVE	64 Neutral	€66.80B	23.59	41.80%	3.01%	2.54%	4.51%

Swedbank Corporate Events

Swedbank Acquires Entercard, Expanding Nordic-Baltic Card Business

Swedbank has completed the acquisition of Entercard, making it the sole owner of one of the Nordic region’s leading credit market companies. This strategic move positions Swedbank as the largest card business in the Nordic-Baltic region, enhancing customer value through integrated offerings and cross-selling opportunities. The acquisition, valued at approximately SEK 2.75 billion, is expected to impact Swedbank’s CET1 capital ratio and credit loss provisions but is anticipated to contribute positively to the Group’s return on equity in the medium term.

The most recent analyst rating on ($SE:SWED.A) stock is a Sell with a SEK280.00 price target. To see the full list of analyst forecasts on Swedbank stock, see the SE:SWED.A Stock Forecast page.

Swedbank Secures SEK 837 Million VAT Refund

Swedbank has been granted a VAT refund of SEK 837 million by the Swedish Tax Agency for overpayments made in 2019, 2020, 2022, and 2023. This decision follows the approval of a new method for calculating deductible VAT, reflecting positively on Swedbank’s financial position and potentially impacting its stakeholders by enhancing its operational efficiency.

The most recent analyst rating on ($SE:SWED.A) stock is a Hold with a SEK289.84 price target. To see the full list of analyst forecasts on Swedbank stock, see the SE:SWED.A Stock Forecast page.

Swedbank Reports Strong Q3 2025 Performance with Increased Profit

Swedbank’s third-quarter 2025 report highlights a return on equity of 16.0% and solid credit quality, maintaining its position as the most loved brand in the Baltics for the seventh consecutive year. Despite a slight decline in total income and net interest income compared to the previous year, the bank reported an 8% increase in profit for the period, reflecting the effectiveness of its customer-focused strategy.

The most recent analyst rating on ($SE:SWED.A) stock is a Hold with a SEK276.00 price target. To see the full list of analyst forecasts on Swedbank stock, see the SE:SWED.A Stock Forecast page.