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Swedbank AB (SWDBY)
OTHER OTC:SWDBY
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Swedbank AB
(OTC:SWDBY)
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Rating:79Outperform
Price Target:―
Swedbank's overall strong financial performance, characterized by high profitability and improved cash flow, is a significant strength. Technical indicators suggest positive momentum, though caution is advised due to potential overbought conditions. Valuation metrics are attractive, with a low P/E ratio and high dividend yield. Earnings call insights reaffirm robust fundamentals but highlight areas of concern, such as declining net interest income and regional tax impacts. These factors collectively position Swedbank as a solid investment choice in the regional banking sector.
Swedbank AB (SWDBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$33.01B
Dividend Yield7.29%
Average Volume (3M)2.68K
Price to Earnings (P/E)10.2
Beta (1Y)0.72
Revenue Growth-5.22%
EPS Growth0.97%
CountryUS
Employees16,933
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.72
Shares Outstanding1,132,005,700
10 Day Avg. Volume0
30 Day Avg. Volume2,684
Financial Highlights & Ratios
PEG Ratio2.97
Price to Book (P/B)1.13
Price to Sales (P/S)3.36
P/FCF Ratio3.06
Enterprise Value/Market Cap3.30
Enterprise Value/Revenue1.30
Enterprise Value/Gross Profit1.53
Enterprise Value/Ebitda10.30
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
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 Earnings Call Summary
Earnings Call Date:Jul 17, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
Swedbank reported strong financial metrics such as return on equity and capital position, alongside strategic growth in mortgage and Baltic banking segments. However, challenges include decreased net interest and commission income, as well as navigating economic uncertainties and cost pressures.Q2-2025 Updates
Positive Updates
Strong Return on Equity
Swedbank reported a return on equity of 15.4% for the second quarter, indicating strong financial performance.
Successful Mortgage Growth
Mortgage volumes in Sweden increased by SEK 2 billion, with a SEK 3.5 billion increase through Swedbank's own channels.
Baltic Banking Growth
Lending in the Baltic Banking segment increased, with private lending up by SEK 4 billion and corporate lending also up by SEK 4 billion.
Strong Capital Position
Swedbank has a solid capital buffer of 4.5 percentage points and a CET1 capital ratio of 19.7%.
Sustainable Finance Initiatives
The sustainable asset register increased by SEK 6 billion, reaching SEK 142 billion.
Partnership and Acquisition
Swedbank announced the acquisition of digital mortgage company Stabelo to enhance its mortgage business.
Negative Updates
Decline in Net Interest Income
Net interest income decreased by SEK 572 million due to falling interest rates and lower deposit rates.
Lower Net Commission Income
Net commission income fell due to lower average stock market performance, impacting asset management commissions negatively.
Challenging Economic Conditions
The global economy is marked by uncertainty, with geopolitical tensions and trade conflicts affecting growth prospects.
Cost Challenges
Although costs remained flat, there are ongoing concerns about managing long-term cost pressures and necessary investments.
Policy Rate Cuts Impact
The timing of policy rate cuts continues to affect Swedbank's interest income dynamics.
Company Guidance
During Swedbank's second quarter results presentation for the fiscal year 2025, the bank reported a return on equity of 15.4% and earnings per share of SEK 6.99. Despite economic challenges, Swedbank maintained strong credit quality with credit impairments of SEK 150 million and a solid capital position, boasting a capital buffer of 4.5 percentage points. Net interest income decreased due to falling interest rates, while net commission income was also down, impacted by lower average stock market performance, although seasonally higher card commissions provided a positive contribution. The bank's cost-to-income ratio stood at SEK 0.36, reflecting strict cost control, with total expenses flat at SEK 6.1 billion. Swedbank's strategic focus includes strengthening customer interactions, growing volumes, and increasing efficiency, supported by a robust business model and a financial plan targeting a sustainable return on equity of at least 15% and a cost-to-income ratio not exceeding SEK 0.4. Additionally, Swedbank announced the acquisition of Stabelo, a fully digital mortgage company, to enhance their mortgage offerings, particularly to younger and more digital customers.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
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.82
Very Positive
Balance Sheet
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.88
Very Positive
Cash Flow
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.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 83.41B | 73.33B | 72.25B | 52.48B | 45.91B | 45.09B |
| Gross Profit | 71.29B | 73.33B | 73.12B | 52.48B | 45.91B | 45.09B |
| EBITDA | 10.56B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 33.93B | 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 | 325.02B | 325.60B | 252.99B | 365.99B | 360.15B | 293.81B |
| Total Debt | 943.36B | 916.01B | 866.22B | 881.36B | 806.11B | 770.22B |
| Total Liabilities | 2.92T | 2.79T | 2.66T | 2.68T | 806.11B | 770.22B |
| Stockholders Equity | 208.68B | 218.87B | 198.76B | 176.06B | 161.67B | 155.17B |
Cash Flow | ||||||
| Free Cash Flow | 36.13B | 80.41B | -146.00B | -18.98B | 49.16B | 108.87B |
| Operating Cash Flow | 36.58B | 80.82B | -145.15B | -18.62B | 49.41B | 109.24B |
| Investing Cash Flow | -180.00M | -147.00M | -418.00M | 691.00M | 628.00M | 1.38B |
| Financing Cash Flow | -23.81B | -12.64B | 32.17B | 10.02B | 14.15B | -8.70B |
Swedbank AB Technical Analysis
Positive
29.59
Price Trends
27.82
Positive
26.97
Positive
24.03
Positive
Market Momentum
0.48
Negative
64.03
Neutral
77.59
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 29.59 is above the 20-day moving average (MA) of 28.84, above the 50-day MA of 27.82, and above the 200-day MA of 24.03, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 64.03 is Neutral, neither overbought nor oversold. The STOCH value of 77.59 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $33.01B | 10.24 | 16.05% | 7.29% | -5.22% | 0.97% | |
78 Outperform | 25.98B | 13.31 | 10.08% | 3.50% | 6.06% | 28.03% | |
77 Outperform | 24.24B | 12.77 | 11.13% | 3.74% | 2.94% | 20.85% | |
76 Outperform | 30.50B | 14.40 | 11.06% | 3.21% | 1.90% | 2.87% | |
76 Outperform | 31.57B | 12.98 | 9.47% | 2.75% | 0.69% | 14.79% | |
72 Outperform | 23.87B | 11.19 | 10.75% | 0.42% | -2.09% | -6.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
SWDBY
Swedbank AB
29.59
9.71
48.84%
FITB
Fifth Third Bancorp
46.08
4.75
11.49%
FCNCA
First Citizens BancShares
1,866.88
-81.52
-4.18%
HBAN
Huntington Bancshares
17.72
3.67
26.12%
MTB
M&T Bank
202.02
29.32
16.98%
RF
Regions Financial
27.16
5.18
23.57%
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.