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Swedbank AB
(OTC:SWDBY)
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Rating:66Neutral
Price Target:
$40.00
▲(4.66% Upside)
Action:Downgraded
Date:07/18/26
Overall score reflects strong profitability and constructive earnings-call fundamentals (capital strength, momentum, legal overhang reduced), supported by attractive valuation (moderate P/E and high dividend yield). The main constraint is financial quality risk from negative/volatile operating and free cash flow and higher leverage, while technicals are moderately supportive rather than strongly bullish.
Positive Factors
High profitability and ROE
Sustained high margins and ~15% ROE indicate durable earnings power across lending and fee businesses. This profitability provides internal capital generation and resilience to support dividend policy and investments over the next 2–6 months despite cycle variability.
Negative Factors
Elevated and rising leverage
Higher leverage increases sensitivity to funding costs, market stress and credit losses. A rising debt-to-equity ratio narrows capital headroom and amplifies earnings volatility from rate or credit shocks, limiting strategic flexibility across the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and ROE
Sustained high margins and ~15% ROE indicate durable earnings power across lending and fee businesses. This profitability provides internal capital generation and resilience to support dividend policy and investments over the next 2–6 months despite cycle variability.
Read all positive factors
Swedbank AB (SWDBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$44.84B
Dividend Yield8.27%
Average Volume (3M)1.10K
Price to Earnings (P/E)13.7
Beta (1Y)0.79
Revenue Growth-3.34%
EPS Growth2.06%
CountryUS
Employees18,638
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)27.77
Shares Outstanding1,132,005,700
10 Day Avg. Volume1,245
30 Day Avg. Volume1,096
Financial Highlights & Ratios
PEG Ratio-1.84
Price to Book (P/B)1.59
Price to Sales (P/S)3.14
P/FCF Ratio-7.67
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.84
Revenue Forecast (FY)$7.43B
Swedbank AB Business Overview & Revenue Model
Company Description
Swedbank AB (publ) is a prominent financial institution that delivers a wide array of banking services and products to both individual customers and corporate entities. The company’s operations are structured across three primary segments: Swedish...
How the Company Makes Money
Swedbank makes money mainly through net interest income, net fee and commission income, and other income from financial activities.
1) Net interest income (core earnings driver): The bank earns interest on loans—especially residential mortgages a...
Swedbank AB Earnings Call Summary
Earnings Call Date:Jul 17, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed a generally positive operational and financial performance: strong quarterly profit, healthy capital position, ratings upgrades, robust lending and asset‑gathering momentum, and the closure of major U.S. investigations. Offsetting these positives were near‑term headwinds including SEK 860m in extraordinary restructuring costs, pressure on lending margins and funding timing effects impacting NII, model/provision volatility and some IRB/RWA uncertainty. On balance, the highlights (profitability, capital strength, market share gains and inflows) materially outweigh the lowlights, which are primarily transitional or related to ongoing program costs and model approvals.Positive Updates
Strong quarterly profitability
Profit for the quarter amounted to SEK 7.2 billion; adjusted return on equity (excl. extraordinary restructuring costs) was 15.5%; earnings per share were SEK 6.37.
Negative Updates
Extraordinary restructuring costs hit results
SEK 860 million of extraordinary costs were incurred this quarter (part of an announced SEK 1.3 billion program), which reduced adjusted metrics: including these costs, ROE was 14.2% and cost‑to‑income ratio ~43% versus 39% excluding them.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong quarterly profitability
Profit for the quarter amounted to SEK 7.2 billion; adjusted return on equity (excl. extraordinary restructuring costs) was 15.5%; earnings per share were SEK 6.37.
Read all positive updates
Company Guidance
Management reiterated cost guidance of SEK 27.5bn for 2026 (excluding extraordinary costs and FX) and confirmed the SEK 1.3bn restructuring (SEK 860m incurred this quarter) is on track, with FTEs expected to be ~16,800 “by the end of next year,” elevated investment in 2027 (synergies to offset additional costs) and a SEK 1bn lower annual cost run‑rate targeted by end‑2028; capital policy remains to target the midpoint of a 100–300bp CET1 buffer (~200bp) with a 60–70% dividend payout policy (quarter‑end CET1 17.4%, ~260bp buffer); they flagged an NII reduction of ~SEK 600m if Entercard’s SEK 11bn consumer book is sold (with a 1–2bp permanent cost‑of‑risk effect), noted PayEx savings sit outside the SEK 1.3bn programme, and that funding was front‑loaded (~80/130 of the year). Key reported metrics used to frame guidance include adjusted ROE 15.5% (14.2% incl. SEK 860m extra cost), cost/income 0.39 excl. (0.43 incl.), quarterly profit SEK 7.2bn, EPS SEK 6.37, credit impairments SEK 313m (6bps; macro add SEK 108m; post‑model adjustment SEK 161m), AUM SEK 2.9trn with SEK 22bn net inflows to Swedbank Robur, and a SEK 179bn sustainable asset register.Swedbank AB Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
63
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 115.04B | 114.35B | 144.06B | 131.14B | 64.54B | 49.66B |
| Gross Profit | 70.27B | 67.90B | 73.33B | 72.25B | 51.29B | 46.70B |
| EBITDA | 41.25B | 43.48B | 47.15B | 45.63B | 29.58B | 27.50B |
| Net Income | 31.09B | 32.76B | 34.87B | 34.13B | 21.36B | 20.87B |
Balance Sheet | ||||||
| Total Assets | 3.31T | 3.06T | 3.01T | 2.86T | 2.85T | 2.75T |
| Cash, Cash Equivalents and Short-Term Investments | 395.90B | 263.63B | 413.62B | 252.99B | 365.99B | 360.15B |
| Total Debt | 1.02T | 909.93B | 922.53B | 873.63B | 881.46B | 808.09B |
| Total Liabilities | 3.10T | 2.84T | 2.79T | 2.66T | 2.68T | 2.59T |
| Stockholders Equity | 207.04B | 225.80B | 218.87B | 198.76B | 176.05B | 161.67B |
Cash Flow | ||||||
| Free Cash Flow | -31.05B | -46.83B | 80.41B | -146.00B | -18.98B | 49.16B |
| Operating Cash Flow | -30.58B | -46.34B | 80.82B | -145.15B | -18.62B | 49.41B |
| Investing Cash Flow | -3.74B | -3.67B | -147.00M | -418.00M | 691.00M | 628.00M |
| Financing Cash Flow | -27.21B | -1.43B | -12.64B | 32.17B | 10.02B | 14.15B |
Swedbank AB Technical Analysis
Positive
38.22
Price Trends
38.02
Positive
36.56
Positive
34.61
Positive
Market Momentum
0.63
Positive
59.54
Neutral
20.52
Neutral
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 38.22 is below the 20-day moving average (MA) of 39.44, above the 50-day MA of 38.02, and above the 200-day MA of 34.61, indicating a bullish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 59.54 is Neutral, neither overbought nor oversold. The STOCH value of 20.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SWDBY.
Swedbank AB Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $36.69B | 13.62 | 10.66% | 2.40% | 0.31% | 22.76% | |
74 Outperform | $52.65B | 19.46 | 8.43% | 2.79% | 17.05% | -8.65% | |
74 Outperform | $36.19B | 13.20 | 8.58% | 3.57% | 18.13% | -3.57% | |
71 Outperform | $27.18B | 12.78 | 11.79% | 3.43% | 0.26% | 14.72% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $25.44B | 12.02 | 10.68% | 0.38% | -1.38% | 10.35% | |
66 Neutral | $44.84B | 13.67 | 14.70% | 8.65% | -3.34% | 2.06% |
* Financial Sector Average
SWDBY
Swedbank AB
39.97
13.61
51.66%
FITB
Fifth Third Bancorp
57.60
16.21
39.15%
FCNCA
First Citizens BancShares
2,248.18
354.69
18.73%
HBAN
Huntington Bancshares
17.95
1.93
12.05%
MTB
M&T Bank
252.86
67.99
36.78%
RF
Regions Financial
31.70
6.97
28.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.