Swedbank Ab Class A · OMXSTO:SWED_A
Swedbank Ab Class A — Q1 2024 Earnings Presentation
26 slides from Swedbank Ab Class A's earnings presentation, 2024
Slide 1: First quarter results 2024
First quarter results 2024
Slide 2: Resilient economies, lower inflation, positive outlook for 2025
Sweden Estonia Latvia Lithuania ● Resilient economies 2.7% 2.8% 2.8% 2.8% ● Lower inflation 1.4% 1.8% 0.1% ● Positive outlook for 2025 -0.2% -0.3% -0.3% -0.5% -3.0% 2023 2024F 2025F Sweden Estonia Latvia Lithuania Riksbank ECB (deposit rate) FED (upper bound) 25% 6.0% 20% 5.0% 4.0% 15% 3.0% 10% 2.0%
Slide 3: Q1 2024 income statement and key figures
▲ ● Net profit SEK 8.4bn Net interest income 12 599 13 329 -5% Net commission income 3 976 3 754 6% ● Return on equity Net gains and losses 682 845 -19% 16.9 per cent Other income 831 1 101 -25% ● Cost/Income ratio 0.34 Total income 18 087 19 029 -5% Total expenses 6 185 6 411 -4% ● EPS after diluti
Slide 4: Solid credit quality and strong liquidity
● Solid credit quality ● Credit impairments SEK 144m ● CET1 capital buffer 4.2 percentage points ● Strong liquidity position ● High level of digital availability © Swedbank 4
Slide 5: Customers in focus
Customers in focus Swedish Banking business segments e—-—-—> -—_ Private customers a 5 Swedish Banking I I — Micro corporate customers -—=<—<—9 r--> Premium and Private Banking Premium and Private Banking | / customers ---> Corporates and Institutions i SME customers -<--7 P © Swedbank
Slide 6: Mortgage markets and savings
● Swedish mortgage market – Low market activity – Increased house prices – Maintaining leading position ● Baltic mortgage market – High market activity – Maintaining leading position ● Savings – Private deposits stable – Competitive rates in all markets – Robur: more than 60 000 customers in the Bal
Slide 7: Corporate loan book
● Corporate loan book – Stable in Baltic Banking – Slightly lower in Sweden ● Signs of higher business activity in Sweden © Swedbank 7
Slide 8: Collaboration for green energy transition
● Collaboration for Green Energy Transition – Hemma – Ramboll – Agronod ● New offering – green loans in Baltic markets © Swedbank 8
Slide 9: Slide 9
Slide 10: Lending volumes
QoQ +0.5% QoQ -0.4% SEKbn SEKbn 1 527 1 521 0 -4 -6 1 782 1 778 12 1 791 2 Q4 2023 Private Corporate Q1 2024 -6 QoQ +0.8% SEKbn 255 1 1 257 Q4 2023 Sweden1) Baltic Banking Q1 excl. FX FX Q1 2024 Q4 2023 Private Corporate Q1 2024 1) Sweden including; Swedish Banking, Premium and Private Banking and C
Slide 11: Deposit volumes
QoQ +2.9% QoQ +1.9% SEKbn SEKbn 845 1 15 861 +19 1 230 16 4 1 249 16 1 266 0 Q4 2023 Private Corporate Q1 2024 QoQ 0.0% SEKbn 383 1 383 -1 Q4 2023 Sweden1) Baltic Group Q1 excl. FX FX Q1 2024 Banking functions Q4 2023 Private Corporate Q1 2024 1) Sweden including; Swedish Banking, Premium and Privat
Slide 12: Net interest income
QoQ -5.5% SEKm ● NII decrease – FX and day count 13 329 40 – Q4 adjustments: Lower deposit guarantee fee and methodology -25 12 599 -311 -83 change in C&I origination fees -351 -379 – Lower average lending volumes in C&I Business-driven NII – Lower deposit margins due to mix shifts – Proactive whol
Slide 13: Net commission income
QoQ +5.9% SEKm ● Asset management impacted by higher average stock +222 market performance and net sales 172 11 33 3 976 ● Securities & Corporate Finance 3 754 6 increased mainly due to DCM activity Q4 2023 Cards & Asset Securities & Other Q1 2024 Payments Management Corporate Finance © Swedbank 13
Slide 14: Net gains and losses
SEKm ● Fixed income and FX performed well 682 ● Negative revaluation from 137 590 30 funding related swaps 30 ● Positive revaluations of equity -105 investments ● High Q4 positive revaluation effects in Treasury – stable this quarter Client trading Bond inventories Funding Liquidity Other Total NGL
Slide 15: Other income
QoQ -24.5% SEKm ● Underlying Net insurance income improved -270 ● Revaluations mainly in Baltic 1 101 Banking decreased Net insurance 831 10 ● Income from partly owned -269 -12 companies were slightly higher Q4 2023 Net insurance Associates Other Q1 2024 © Swedbank 15
Slide 16: Expenses and cost outlook
QoQ -3.5% SEKm ● Temporary investments Underlying expenses Administrative fine and provision C/I ratio ● Salary reviews in Sweden 0.37 ● Third party contracts 0.34 0.34 0.31 0.30 6 410 6 411 6 185 887 5 717 5 562 ● 2024 cost outlook – 2023 level excluding fines 5 523 – Temporary investments of rough
Slide 17: Credit impairments
SEKm ● Credit impairment ratio 3bps ● Remaining Post model 403 adjustments of SEK 1bn 302 76 144 25 -349 -313 Macro Rating & stage Post model Individual Net repayments Other Total credit scenarios migrations adjustments assessments and balances impairments © Swedbank 17
Slide 18: Managing balance sheets
● Managing balance sheets Q4 2023 disclosures, per cent 10% − Divestments of properties 8.4% 7.8% 8.0% 8% 7.2% 7.4% − Restructurings 6.9% 7.0% − Capital injections 6% − Bond buy-backs 4% Q1 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 − Cancelled dividends − CAPEX reductions Q4 2023 disclosures (Q3 2023)
Slide 19: CET1 capital ratio of 19.3 per cent
● CET1 capital ratio of 19.3 per cent ~420bps ● 100-300bps capital buffer buffer target range remains 19.0% 0.5% 0.2% 19.3% -0.3% 15.1% Q4 2023 Profit after Credit risk Other Q1 2024 CET1 capital anticipated requirement dividend © Swedbank 19
Slide 20: Risk exposure amount increased by SEK 12bn
SEKbn ● REA increased by SEK 12bn – Of which FX, SEK 7.3bn 13.8 1.8 859.4 847.1 -2.0 -1.4 Q4 2023 Credit risk Article 3 Market & CVA Q1 2024 Settlement risk © Swedbank 20
Slide 21: Summary of first quarter
● Net profit of SEK 8.4bn ● Return on equity 16.9 per cent ● Cost to income ratio 0.34 ● Low credit impairments ● Strong capital position © Swedbank 21
Slide 22: Appendix
Appendix
Slide 23: Mortgage portfolio: loan-to-value and past due loans
Q1 2024, private mortgage loans, SEKbn 20 20 16 16 96% of portfolio below 70% LTV ● Average loan-to-value of 12 12 59 per cent 8 8 4 4 0 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 2024, per cent and SEKm of private mortg
Slide 24: Property management exposure
● Focus on strong cash flows Q1 2024, per cent Q1 2024, SEK 240bn in total and collateral ● Continuous dialogue with customers 79 10% SEK 102 ● Average LTV 301bn 80% 10% − Property management, 20 53 per cent 38 • Non-residential, 52 per cent Sweden Residential • Residential, 53 per cent Baltics Comm
Slide 25: Liquidity and funding
180% Liquidity Coverage Ratio Q1 2024, SEKbn Q1 2024, SEKbn 9 12 79 53 126% 3 Net Stable Funding Ratio 324 347 218 275 >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 26: Swedbank
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