Swedbank AB (SWDBY) AI Stock Analysis

Compare

114 Followers

SWDBY Dividends

Top Page

Swedbank AB

(OTC:SWDBY)

78Outperform

Swedbank demonstrates strong financial performance with robust profit margins and revenue growth. The stock's valuation is attractive, supported by a low P/E ratio and a healthy dividend yield. Technical indicators show strong upward momentum, though caution is warranted due to overbought signals. While the earnings call highlighted both achievements and challenges, the company's financial resilience and strategic focus on efficiency and profitability strengthen its overall position.

Swedbank AB (SWDBY) vs. S&P 500 (SPY)

Market Cap

$24.24B

Dividend Yield8.83%

Average Volume (3M)16.07K

Price to Earnings (P/E)7.5

Beta (1Y)0.82

Revenue Growth12.57%

EPS Growth2.62%

CountryUS

Employees17,567

SectorFinancial

Sector Strength76

IndustryBanks - Regional

Share Statistics

EPS (TTM)0.68

Shares Outstanding1,132,006,000

10 Day Avg. Volume6,649

30 Day Avg. Volume16,074

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)4.01

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Swedbank AB Business Overview & Revenue Model

Company DescriptionSwedbank AB (SWDBY) is a leading financial institution based in Sweden, operating primarily in the Nordic and Baltic regions. The bank provides a wide range of financial services, including retail, corporate, and investment banking, asset management, and insurance products. With a strong emphasis on sustainability and digital innovation, Swedbank aims to meet the diverse financial needs of its customers through comprehensive and tailored solutions.

How the Company Makes MoneySwedbank AB generates revenue through multiple streams. A significant portion of its income comes from interest earned on loans and advances to both retail and corporate clients. The bank also earns fees and commissions from a variety of financial services such as asset management, investment banking activities, and payment processing. Additionally, Swedbank's insurance products contribute to its revenue through premiums collected. The bank benefits from strategic partnerships with businesses and financial institutions, enhancing its ability to offer competitive financial solutions. Swedbank's focus on digital banking services helps in cost reduction and expands its customer base, further driving profitability.

Swedbank AB Financial Statement Overview

Summary

Swedbank AB's financial performance is strong, driven by impressive profit margins and revenue growth. The balance sheet reflects stability with no debt, though the equity ratio indicates a higher leverage. Cash flow has improved significantly, showing better cash management. While the company is financially robust, attention to operational efficiencies can further enhance performance.

Income Statement

Very Positive

Swedbank AB has shown strong revenue growth with a consistent increase year-over-year, notably a 4.8% increase from 2023 to 2024. The net profit margin is robust at 47.5% in 2024, indicating high profitability. However, there is no reported EBIT or EBITDA margin for 2024, which limits a comprehensive understanding of operational efficiency.

Balance Sheet

Very Positive

The balance sheet is strong, with no reported debt in 2024, demonstrating excellent financial stability. The equity ratio is healthy at 7.3%, and the return on equity is impressive at 15.9%, indicating efficient use of equity to generate profits. However, the comparatively low equity ratio suggests high leverage relative to industry norms.

Cash Flow

Positive

Operating cash flow improved significantly to 80.8 billion in 2024, showing a positive turnaround from negative cash flow in 2023. Free cash flow also improved considerably. However, the operating cash flow to net income ratio is approximately 2.3, which indicates strong cash generation relative to net income but could be better balanced.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
73.33B	72.25B	52.48B	45.91B	45.09B
	Gross Profit
74.37B	73.12B	52.48B	45.91B	45.09B
	EBIT
44.19B	47.42B	39.48B	25.82B	16.78B
	EBITDA
46.36B	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
34.87B	34.13B	21.36B	20.87B	12.93B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
325.60B	252.99B	365.99B	360.15B	293.81B
	Total Assets
3.01T	2.86T	2.85T	2.75T	2.59T
	Total Debt
916.01B	866.22B	881.36B	806.11B	770.22B
	Net Debt
590.41B	-252.99B	515.37B	445.96B	476.41B
	Total Liabilities
2.79T	2.66T	2.68T	806.11B	770.22B
	Stockholders Equity
218.87B	198.76B	176.06B	161.67B	155.17B
Cash Flow		Free Cash Flow
80.41B	-146.00B	-18.98B	49.16B	108.87B
	Operating Cash Flow
80.82B	-145.15B	-18.62B	49.41B	109.24B
	Investing Cash Flow
-147.00M	-418.00M	691.00M	628.00M	1.38B
	Financing Cash Flow
-12.64B	32.17B	10.02B	14.15B	-8.70B

Swedbank AB Technical Analysis

Technical Analysis Sentiment

Positive

Last Price22.97

Price Trends

50DMA

22.63

Positive

100DMA

20.83

Positive

200DMA

19.95

Positive

Market Momentum

MACD

-0.13

Negative

RSI

55.10

Neutral

STOCH

99.04

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SWDBY, the sentiment is Positive. The current price of 22.97 is above the 20-day moving average (MA) of 22.17, above the 50-day MA of 22.63, and above the 200-day MA of 19.95, indicating a bullish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 55.10 is Neutral, neither overbought nor oversold. The STOCH value of 99.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWDBY.

Swedbank AB Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWDBY	78 Outperform	$24.24B	7.51	16.69%	8.83%	12.57%	2.62%
FCNCA	77 Outperform	$22.64B	8.90	12.77%	0.43%	18.05%	-75.88%
FITB	73 Outperform	$22.26B	10.58	11.71%	4.38%	6.12%	0.68%
HBAN	73 Outperform	$19.68B	10.36	10.30%	4.60%	7.89%	17.47%
RF	72 Outperform	$17.29B	9.22	11.33%	5.18%	1.23%	12.14%
Sector *	63 Neutral	$12.07B	9.35	8.15%	79.57%	12.85%	-5.13%
MTB	63 Neutral	$25.95B	10.79	9.39%	3.44%	1.41%	1.12%

* Financial Sector Average

Performance Comparison

SWDBY

Swedbank AB

23.17

4.36

23.18%

FITB

Fifth Third Bancorp

34.65

-1.07

-3.00%

FCNCA

First Citizens BancShares

1,734.53

117.61

7.27%

HBAN

Huntington Bancshares

13.93

0.87

6.66%

MTB

M&T Bank

162.00

19.49

13.68%

Regions Financial

19.78

1.24

6.69%

Swedbank AB Earnings Call Summary

Earnings Call Date: Jan 23, 2025 | % Change Since: 14.85% | Next Earnings Date: Apr 29, 2025

Earnings Call Sentiment Neutral

Swedbank's 2024 performance showed resilience with a modest profit increase, strong return on equity, and solid credit quality. However, challenges such as a decline in net interest income and mortgage volumes in Sweden, as well as new bank taxes in Latvia, present significant concerns. The sentiment of the call is balanced, reflecting achievements in sustainable asset growth and a strong dividend proposal, offset by operational challenges and external tax pressures.

Highlights

Profit Increase

The profit for the full year 2024 increased by 2% compared to the previous year, with a strong fourth-quarter result of SEK8.5 billion.

Return on Equity

For the full year 2024, Swedbank delivered a return on equity of 17.1%, and for the fourth quarter, a return of 15.8%.

Credit Quality

Swedbank's credit quality remains solid with credit impairment provision recoveries in the fourth quarter as well as for the full year.

Dividend Proposal

The Board of Directors intends to propose a dividend for 2024 of SEK21.70 per share, corresponding to 70% of the profit.

Sustainable Asset Growth

Swedbank's sustainable asset register exceeded SEK120 billion at the end of 2024, after increasing by more than 70% during the year.

Lowlights

Net Interest Income Decline

Net interest income declined during 2024 and was stable during the quarter, impacted by lower customer interest rates on lending offset by lower funding costs.

Mortgage Volume Decline in Sweden

Swedbank's mortgage volumes in Sweden declined slightly during the third and fourth quarters, attributed to low availability at critical times.

Latvia Bank Tax Impact

The new bank tax in Latvia, which excludes income from new lending, is anticipated to negatively impact Swedbank's business strategy in the region.

Temporary Write-Downs

A write-down of SEK757 million was reported due to the regular accounting review of intangibles following front-loaded IT investments.

Company Guidance

During the Swedbank Q4 2024 conference call, the company provided guidance highlighting several financial metrics. Swedbank reported a 2% increase in profit for the full year 2024 compared to the previous year, with a fourth-quarter profit of SEK8.5 billion. The net interest income remained stable, while net commission income increased during the year. The cost-to-income ratio was 0.34 for the full year and 0.36 for the quarter. The return on equity was 17.1% for the full year and 15.8% for the quarter. Swedbank's Board of Directors revised the dividend policy to 60-70% of profit, proposing a 2024 dividend of SEK21.70 per share. Credit impairment provision recoveries were recorded, reflecting solid credit quality. The CET1 capital ratio stood at 19.8%, with a capital buffer of 460 basis points above requirements. Swedbank anticipates further rate cuts by central banks in 2025 and expects its home markets to be fast-growing in Europe, supported by strong public finances and lower interest rates. The bank remains focused on efficiency and profitability, with a cost guidance of SEK26.5 billion for 2025, including SEK1 billion for temporary investments.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.