Swedbank Ab Class A · OMXSTO:SWED_A
Swedbank Ab Class A — Q1 2025 Earnings Presentation
26 slides from Swedbank Ab Class A's earnings presentation, 2025
Slide 1: First quarter results 2025
Slide 2: Rate cuts from the ECB and Riksbank during Q1
Sweden Estonia Latvia Lithuania ● Rate cuts from the ECB and Riksbank during Q1 3.0% 2.7% 2.5% 2.8% 2.5% 2.7% ● Uncertainty has reached new heights 1.5% 1.5% 2.2% 0.9% ● Better outlook for GDP growth in our home markets than in the eurozone and US -0.2% -0.4% 2024 2025F 2026F Sweden Estonia Latvia L
Slide 3: Net profit SEK 8.2bn
▲ ● Net profit SEK 8.2bn Net interest income 11 489 12 274 -6% Net commission income 4 052 4 285 -5% ● Cost/Income ratio 0.35 Net gains and losses 541 923 -41% ● Return on equity Other income 1 247 1 152 8% 15.2 per cent Total income 17 329 18 634 -7% Total expenses 6 115 6 740 -9% ● EPS SEK 7.26 Pr
Slide 4: Solid credit quality and strong capital position
● Solid credit quality ● Credit impairment reversals ● Strong capital and liquidity position ● Raised credit rating from Moody’s after the quarter © Swedbank 4
Slide 5: Swedish and Baltic mortgage markets, savings
● Swedish mortgage market – Leading position – Minor volume decrease ● Baltic mortgage market – Leading position – Increased volumes ● Savings, pensions & insurance – Savings outflows and reallocations ● Premium and Private Banking – Good customer inflow despite market volatility © Swedbank 5
Slide 6: Swedish and Baltic corporate markets
● Swedish corporate market – Corporate lending increased – Focus on corporate business and partner strategy ● Baltic corporate market – Lending decreased slightly – Demand for energy efficiency and green loans remains stable © Swedbank 6
Slide 7: Adjusted branch opening hours and call answering
● Adjusted branch opening hours – Employees can spend more time with customers in scheduled appointments and by phone ● More than 50% of incoming calls answered within three minutes – 20% at beginning of quarter – Our goal is to reach 80% © Swedbank 7
Slide 8: Most sustainable brand among the Swedish banks
● Most sustainable brand among the Swedish banks ● Group Sustainability moving to CFO Office ● Sustainable Asset Register at SEK 136bn ● 33% of arranged bonds were sustainability bonds ● EUR 10m invested in educational foundation in Estonia © Swedbank 8
Slide 9: Net profit SEK 8.2bn
▲ ● Net profit SEK 8.2bn Net interest income 11 489 12 274 -6% Net commission income 4 052 4 285 -5% ● Cost/Income ratio 0.35 Net gains and losses 541 923 -41% ● Return on equity Other income 1 247 1 152 8% 15.2 per cent Total income 17 329 18 634 -7% Total expenses 6 115 6 740 -9% ● EPS SEK 7.26 Pr
Slide 10: Lending volumes and deposits QoQ
QoQ -0.6% QoQ +0.5% SEKbn SEKbn 1 512 10 1 520 -2 +9 1 800 8 1 1 809 1 789 Q4 2024 Private Corporate Q1 2025 -20 QoQ +0.3% SEKbn 288 2 289 -1 1) Q4 2024 Sweden Baltic Banking Q1 excl. FX FX Q1 2025 Q4 2024 Private Corporate Q1 2025 1) Sweden including Swedish Banking, Premium and Private Banking, Co
Slide 11: Deposit and lending volume development
QoQ -1.6% QoQ +0.8% SEKbn SEKbn 847 1 6 853 +6 Q4 2024 Private Corporate Q1 2025 1 281 7 1 287 1 261 -0 -26 QoQ -0.1% SEKbn 434 1 434 -1 Q4 2024 Sweden Baltic Banking Q1 excl. FX FX Q1 2025 Q4 2024 Private Corporate Q1 2025 1) Sweden including Swedish Banking, Premium and Private Banking, Corporates
Slide 12: Net interest income: lower customer rates
QoQ -6.4% SEKm ● Lower customer rates, leading -785 to lower lending income and lower deposit expense 12 274 ● Lower wholesale funding costs 1 002 11 489 ● SEK -204m from FX and day 1 398 count effects -488 -2 697 Q4 2024 Lending Deposit Cash with Wholesale Q1 2025 income expense central banks & fun
Slide 13: Net commission income lower on seasonality
QoQ -5.4% SEKm ● NCI lower mainly due to -233 seasonality and calendar effects 4 285 ● Card commissions decreased 43 25 4 052 and payments impacted by -208 -94 higher commission costs ● Asset management impacted by stock market performance and FX effects ● Increased insurance and service concept com
Slide 14: Net gains and losses
SEKm ● Solid fixed income and FX sales & trading 609 22 ● Larger negative revaluation 116 541 from funding and FX related swaps 10 ● Positive revaluation of equity -216 investments Client trading Bond inventories Funding Liquidity Other Total NGL (Treasury) portfolio Q1 2025 © Swedbank 14
Slide 15: Other income: underlying insurance increase
QoQ +8.3% SEKm ● Underlying net insurance +95 income increase partly offset by revaluations 147 53 1 247 1 152 ● Higher results from partly -93 -12 owned companies +54 Net insurance Q4 2024 Underlying Revaluations Associates Other Q1 2025 insurance © Swedbank 15
Slide 16: Expenses: VAT recovery and Estonian endowment
QoQ -9.3% SEKm ● Q1 seasonally lower Expenses C/I ratio -625 ● VAT recovery of SEK 205m ● Estonian endowment of 6 465 6 740 SEK 113m 6 185 6 115 5 986 ● Stable staff cost 0.36 0.35 0.35 0.34 0.31 ● Latvian bank tax base changed Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 from mortgage volumes to NII © S
Slide 17: Credit impairments of SEK -141m
SEKm ● Q1 credit impairments of SEK -141m corresponds to an impairment ratio of -3bps 89 ● Remaining post model 29 17 adjustment buffer of SEK 715m -12 -265 -141 Macro Rating & stage Post model Individual Other, incl. Total credit scenarios migrations adjustment assessment repayments impairments, &
Slide 18: Total REA increased by SEK 5bn
SEKbn ● Total REA increased by SEK 5bn +5 ● CRR 3 day-one impact 20.3 871.9 0.3 876.7 ● Credit risk reduced REA - 15.8 – Lending SEK 3bn – FX SEK -9bn – Improvement in asset quality and shorter loan maturities, SEK -10bn Q4 2024 CRR 3 effect Credit risk Other Q1 2025 © Swedbank 18
Slide 19: CET1 capital ratio of 19.7 per cent
● CET1 capital ratio of 19.7 per cent ~450bps buffer1) ● CET1 capital ratio buffer impact of -46bps from CRR 3 19.8% 0.4% 19.7% 0.3% -0.3% ● 100-300bps capital buffer -0.5% range targeting 200bps 15.2% Q4 2024 CRR 3 effect Profit after Credit risk Other Q1 2025 CET1 capital anticipated requirement d
Slide 20: Summary and Investor Day 4 June
● Return on equity 15.2 per cent ● Cost to income ratio 0.35 ● Solid credit quality ● Strong liquidity and capital position – Capital buffer at 4.5 percentage points ● Investor Day 4 June – updated strategic plan for the coming years © Swedbank 20
Slide 21: Appendix
Appendix
Slide 22: NII sensitivity from 50 bps interest rate shift
SEKbn (rounded), Q4 2024 ● 3.2 SEKbn NII sensitivity from = Administrative rate pricing = Base rate pricing 50 bps interest rate shift (fully priced in) 220 Equity SEK 640bn equity and 0.5% × 640 SEKbn = 3.2 SEKbn Transaction deposits zero-interest rate funding Swedish mortgages 950 420 Assuming zer
Slide 23: NII sensitivity by assets and liabilities
NII sensitivity assumes zero pass-through on transaction deposits and full pass- through on other assets and liabilities 950 Swedish mortgages -4.8 AR 50 Other adm. lending -0.3 290 Market rate connected lending -1.5 BR 830 Market rate connected lending -4.1 BR 640 Cash & cash equivalents -3.2 180 C
Slide 24: Mortgage portfolio loan-to-value and past dues
Q1 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 – Q1 2025, per cent and SEKm of private mortgage loans in
Slide 25: Liquidity and funding ratios
173% Liquidity Coverage Ratio Q1 2025, SEKbn Q1 2025, SEKbn 6 9 124 106 126% 4 303 Net Stable Funding Ratio 359 166 >2Y 243 Survival horizon Cash and balances with central banks SEK EUR USD OTHER Sovereigns, central banks or multilateral development banks1 Municipalities or public service entities E
Slide 26: _. Swedbank em P
~ _. Swedbank em P