Swedbank Ab Class A · OMXSTO:SWED_A
Swedbank Ab Class A — Q2 2025 Earnings Presentation
25 slides from Swedbank Ab Class A's earnings presentation, Jul 17, 2025
Slide 1: Second quarter results 2025
Second quarter results 2025
Slide 2: Global economy continues to be marked by uncertainty
Sweden Estonia Latvia Lithuania ● Global economy continues to be marked by uncertainty 2.7% 2.8% 2.5% 2.5% 2.3% ● Rate cuts from the ECB and the Riksbank during Q2 1.5% 1.2% 1.5% 2.0% 0.9% ● Better GDP growth outlook for 2026 in our home markets than in the eurozone and US -0.2% -0.4% 2024 2025F 202
Slide 3: Net profit SEK 7.9bn
▲ ● Net profit SEK 7.9bn Net interest income 10 917 11 489 -5% Net commission income 3 902 4 052 -4% ● Cost/Income ratio 0.36 Net gains and losses 856 541 +58% ● Return on equity Other income 1 286 1 247 3% 15.4 per cent Total income 16 962 17 329 -2% Total expenses 6 119 6 115 0% ● EPS after diluti
Slide 4: Solid credit quality
● Solid credit quality ● Credit impairments of SEK 150m – 0.03% impairment ratio ● CET1 capital buffer of 4.5 percentage points ● Strong liquidity position © Swedbank 4
Slide 5: Business priorities and financial plan
● Business priorities and financial plan – Continue to deliver RoE of at least 15% – C/I ratio shall not exceed 0.4 ● Three main areas – Strengthen customer interactions – Grow volumes – Increase efficiency More information about Swedbank 15/27 is available here. © Swedbank 5
Slide 6: Leader in mortgages in all our four home markets
● Leader in mortgages in all our four home markets ● Swedish mortgage market – Lending increased – Own channels increased with SEK 3.5bn ● Baltic mortgage market – Lending increased ● Stabelo acquisition – Developing the mortgage business ● Savings, pensions & insurance – Positive development © Swed
Slide 7: Swedish corporate market
● Swedish corporate market – Lending increased – Good activity in real estate and manufacturing as well as SMEs ● Baltic corporate market – Lending increased – Increasing demand for credit related to energy transition ● Higher activity in Norway – Partnership strategy is working well © Swedbank 7
Slide 8: Sustainable asset register increased by SEK 6bn
● Sustainable asset register increased by SEK 6bn ● 48% of arranged bonds were sustainability bonds ● Financial health – Important during uncertain times © Swedbank 8
Slide 9: Robust capital generation
● Robust capital generation ● Dividend payout ratio of 60-70 per cent ● Normalised CET1 capital ratio buffer of 200bps ● RoE of at least 15 per cent ● C/I ratio not above 0.40 ● Ensure long-term shareholder value © Swedbank 9
Slide 10: Banking
QoQ +1.6% QoQ +0.9% 1 516 2 11 1 529 +21 8 1 810 7 1 817 13 1 789 Q1 2025 Private Corporate Q2 2025 QoQ +2.9% 4 4 281 273 Q1 2025 Sweden1) Baltic Q2 excl. FX FX Q2 2025 Q1 2025 Private Corporate Q2 2025 Banking 1) Sweden including Swedish Banking, Premium and Private Banking, Corporates and Institut
Slide 11: Banking
QoQ +3.0% QoQ +2.5% 850 19 2 871 +27 6 1 288 10 1 298 21 Q1 2025 Private Corporate Q2 2025 1 261 QoQ +1.4% 410 7 416 -1 Q1 2025 Sweden Baltic Q2 excl. FX FX Q2 2025 Q1 2025 Private Corporate Q2 2025 Banking 1) Sweden including Swedish Banking, Premium and Private Banking, Corporates and Institutions
Slide 12: Lower income from central bank placements
QoQ -5.0% ● Phase-in effects on lending partly -572 offset by higher volumes and lower customer deposit rates 11 489 666 ● Lower income from central bank 286 10 917 placements -739 ● Decreased wholesale funding costs -786 Q1 2025 Lending Deposit Cash with Wholesale Q2 2025 income expense central fun
Slide 13: Asset management impacted by stock market performance
QoQ -3.7% ● Card commissions seasonally higher -150 ● Asset management impacted by 138 stock market performance 4 052 3 902 -204 -29 -54 Q1 2025 Cards & Asset Insurance & Other Q2 2025 Payments Management Service concepts © Swedbank 13
Slide 14: High business activity in fixed income and FX sales & trading
● High business activity in fixed income and FX sales & trading ● Negative revaluations from 180 856 derivatives in Treasury 72 691 ● Positive revaluation of equity -82 -4 holdings Client Bond Treasury Liquidity Equity Total NGL trading inventories portfolio holdings & Q2 2025 Other © Swedbank 14
Slide 15: Stable underlying net insurance income
QoQ +3.2% ● Stable underlying net insurance +39 income 59 3 17 1 286 ● Stable results from partly owned 1 247 companies (Associates) -5 -34 ● Increased income from services sold +54 to savings banks Net insurance Q1 2025 Underlying Revaluations Associates Services to Other Q2 2025 insurance Savings
Slide 16: Higher IT- and consultancy costs
QoQ +0.1% ● Reduced staff cost due to fewer FTEs Expenses C/I ratio ● Higher IT- and consultancy costs +3 6 740 ● Lower marketing cost due to one-off 6 465 in Q1 6 185 6 115 6 119 5 986 ● VAT recovery for 2018 of SEK 174m 0.36 0.36 0.35 0.35 0.34 0.31 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025
Slide 17: Q2 credit impairments of SEK 150m corresponds to impairment ratio of 3bps
● Q2 credit impairments of SEK 150m 176 corresponds to an impairment ratio of 150 3bps 32 95 -24 ● Remaining post model adjustment of SEK 594m -129 Macro Rating & stage Post model Individual Other, incl. Total credit scenarios migrations adjustments assessment repayments impairments, & write-offs Q2
Slide 18: Total REA increased by SEK 12bn
● Total REA increased by SEK 12bn +12 ● Credit risk increased REA – Lending SEK 7bn – FX effect of SEK 3bn 10 2 889 877 Q1 2025 Credit risk Market risk & other Q2 2025 © Swedbank 18
Slide 19: CET1 capital ratio of 19.7 per cent
● CET1 capital ratio of 19.7 per cent ● 100-300bps capital buffer range ~450bps buffer1) 19.7% 0.3% 19.7% -0.2% -0.1% 15.2% Q1 2025 Profit after Credit risk Other Q2 2025 CET1 capital anticipated ratio dividend requirement © Swedbank 1) Over and above Pillar2 Guidance 19
Slide 20: Return on equity 15.4 per cent
● Return on equity 15.4 per cent ● Cost to income ratio 0.36 ● Solid credit quality ● Strong liquidity and capital position – Capital buffer at 4.5 percentage points © Swedbank 20
Slide 21: Appendix
Appendix
Slide 22: +50bps = +3.1 SEKbn NII
SEKbn (rounded), Q2 2025 ● +50bps = +3.1 SEKbn NII = Administrative rate pricing = Base rate pricing -50bps = -4.1 SEKbn NII (fully priced in) 210 Equity SEK 640bn equity and Assuming zero passthrough on 430 Transaction deposits zero-interest rate funding transaction deposits and full Swedish mortga
Slide 23: Average loan-to-value of 57 per cent
Q2 2025, private mortgage loans, SEKbn 20 16 97% of portfolio below 70% LTV ● Average loan-to-value of 12 57 per cent 8 4 0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58 61 64 67 70 73 76 79 82 85 88 91 94 97 100 LTV per cent 2004 – Q2 2025, per cent and SEKm of private mortgage loans in
Slide 24: Liquidity Coverage Ratio
164% Liquidity Coverage Ratio Q2 2025, SEKbn Q2 2025, SEKbn 9 5 95 128% 127 4 Net Stable Funding Ratio 320 334 229 210 >2Y Survival horizon Cash and balances with central banks SEK EUR USD OTHER Sovereigns, central banks or multilateral development banks1 Municipalities or public service entities Ex
Slide 25: Swedbank
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