Slide 1: Q4 and year-end result 2024
Slide 2: Macro outlook: weak global economy, policy rate cuts in 2025
Sweden Estonia Latvia Lithuania ● Weak global economy, regional differences and deteriorated geopolitical situation 2.3% 2.4% 3.0% 2.8% 2.5% 2.8% 2.5% 2.4% 1.5% 0.6% ● Home markets expected to be among the fastest growing in Europe 2025 -0.3% -0.8% ● Policy rate cuts during 2025 2024F 2025F 2026F Sw
Slide 3: Income statement summary
▲ ▲ Net interest income 12 274 12 229 0% 49 267 50 933 -3% Net commission income 4 285 4 286 0% 16 716 15 088 11% Net gains and losses 923 1 170 -21% 3 687 2 938 25% Other income 1 152 1 461 -21% 4 435 4 098 8% Total income 18 634 19 146 -3% 74 104 73 057 1% Total expenses 6 740 5 986 13% 25 376 24
Slide 4: Q4 highlights: credit quality, capital, dividend policy
● Solid credit quality ● Strong liquidity and capital position ● New dividend policy of 60 - 70% ● Proposed dividend of SEK 21.70 per share © Swedbank 4
Slide 5: Delivered on Swedbank 15/25
● Delivered on Swedbank 15/25 – Increased business volume – Grown in prioritised segments – Improved our operational efficiency ● New Investor Day before the summer © Swedbank 5
Slide 6: Private customers: mortgage, savings and Premium banking
● Swedish mortgage market – Increased customer mobility – Increased volumes through own channels in 2024, yet lower than our market share ● Baltic mortgage market – Increased in all three countries in 2024 – Green mortgage loans drove development ● Savings, pensions & insurance – Strong development
Slide 7: Corporate markets in Sweden and the Baltics
● Swedish corporate market – Remains muted – Maintained market share in declining bank lending market – Underlying positive view ● Baltic corporate market – Lending increased in Estonia, Latvia and Lithuania – Strong development since the summer © Swedbank 7
Slide 8: Accelerated investment pace and adapted ways of working
● Accelerated investment pace in 2024 – Advisory platform – Omni channel communication platform – Improved end-to-end lending process ● Adapted ways of working in Sweden – Reallocating resources to digital channels and telephony © Swedbank 8
Slide 9: Sustainability milestones and financial health
● 2024 milestones – Sustainable Asset Register SEK >120 billion – 36% of arranged bonds were sustainability bonds – CSRD reporting one year before it comes into effect ● Financial health – >100 000 children and young adults educated in personal finances in Sweden © Swedbank 9
Slide 10: New CFO appointed
● Appointed CFO in November 2024 ● Previously Head of Baltic Banking ● Nearly two decades at Swedbank in total © Swedbank 10
Slide 11: Lending development
QoQ +0.2% QoQ -0.7% SEKbn SEKbn 1 520 1 510 -2 -8 -2 1 796 8 1 794 6 1 800 Q3 2024 Private Corporate Q4 2024 -10 QoQ +3.0% SEKbn 2 6 284 275 Q3 2024 Sweden 1) Baltic Banking Q4 excl. FX FX Q4 2024 Q3 2024 Private Corporate Q4 2024 1) Sweden including Swedish Banking, Premium and Private Banking, Cor
Slide 12: Deposit development
QoQ +0.9% QoQ -2.0% SEKbn SEKbn 866 849 -1 -16 +4 1 273 21 1 277 8 1 285 -17 Q3 2024 Private Corporate Q4 2024 QoQ +5.2% SEKbn 407 17 4 428 Q3 2024 Sweden 1) Baltic Banking Q4 excl. FX FX Q4 2024 Q3 2024 Private Corporate Q4 2024 1) Sweden including Swedish Banking, Premium and Private Banking, Corp
Slide 13: Net interest income development
QoQ +0.4% SEKm ● Lower customer rates, leading +45 to lower lending income and lower deposit expense 12 229 1 015 12 274 1 367 ● Lower wholesale funding costs ● SEK 27m from FX -901 -1 436 Q3 2024 Lending Deposit Cash with Central bank Wholesale Q4 2024 income expense central banks placements fundi
Slide 14: NII sensitivity to 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 420 Transaction deposits zero-interest rate funding Swedish mortgages 950 Assuming zer
Slide 15: Net commission income
QoQ 0% SEKm ● Asset management impacted -1 by higher average stock market performance 4 286 101 13 4 285 ● SEK 50m in market maker fees -74 -40 ● Card commissions seasonally lower Q3 2024 Cards & Asset Securities & Other Q4 2024 Payments Management Corporate Finance © Swedbank 15
Slide 16: Net gains and losses
SEKm ● Solid FX sales and trading 222 923 ● Large positive revaluation from funding related swaps in Q3 107 ● Positive revaluations of equity 58 -9 investments 545 Client trading Bond inventories Funding Liquidity Other Total NGL, (Treasury) portfolio Q4 © Swedbank 16
Slide 17: Other income
QoQ -21% SEKm ● Net insurance income -309 decreased mainly due to less positive revaluation effects 1 461 QoQ in Baltic Banking ● Associates decreased -142 76 1 152 – One-off credit impairment -244 adjustment in Entercard in Q3 of SEK 120m Q3 2024 Net insurance Associates Other Q4 2024 © Swedbank 17
Slide 18: Expenses and cost guidance
QoQ +13% SEKm ● Q4 seasonally higher Expenses C/I ratio ● FY 2024 costs ended at SEK 25.4bn 6 740 – According to guidance, where 6 411 6 465 6 185 FX impact was SEK 240m 5 986 5 562 0.36 ● 2025 cost guidance of 0.34 0.34 0.35 SEK 26.5bn, based on 2024 year-end FX rates 0.31 0.30 Q3 2023 Q4 2023 Q1 2
Slide 19: Credit impairments
SEKm ● FY credit impairments of SEK -268m equals an 353 impairment ratio of -1bps ● Remaining post model -146 -56 adjustment buffer of -212 SEK 720m in Q4 -333 -394 ● Property management (CRE) Macro Rating & stage Post model Individual Other, incl. Total credit – Stable debt service tolerance scenar
Slide 20: Risk exposure amount development
SEKbn ● REA increased by SEK 14bn ● Annual recalculation of operational risk 15.9 871.9 857.8 6.3 - 0.6 - 3.2 ● Next quarter, limited negative - 4.4 impact from Basel 4 Q3 2024 Credit risk Article 3 Article 458 Market & CVA Operational Q4 2024 (RW floor) risk risk © Swedbank 20
Slide 21: CET1 capital ratio and buffer
● CET1 capital ratio of 19.8 per cent 20.4% ~460bps 0.1% 19.8% ● 100-300bps capital buffer buffer -0.3% -0.4% range targeting 200bps 15.2% Q3 2024 Profit after Operational risk Credit & Market Q4 2024 CET1 capital anticipated risk, Other requirement dividend © Swedbank 21
Slide 22: Summary of Q4 and 2024
● Return on equity 17.1 per cent ● Cost to income ratio 0.34 ● Solid credit quality ● Proposed dividend of SEK 21.70 per share ● Strong liquidity and capital position © Swedbank 22
Slide 23: Appendix
Appendix
Slide 24: Net interest income drivers
QoQ +0.4% SEKm ● Lower wholesale funding cost 17 73 393 32 12 274 ● Lending margins increased, 12 229 partially offsetting lower deposit margins -470 ● SEK 27m from FX +13 Business driven NII Q3 2024 Lending Deposit Margins Treasury FX & Other Q4 2024 volumes volumes & Other © Swedbank 24
Slide 25: 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 26: Mortgage portfolio loan-to-value and credit quality
Q4 2024, private mortgage loans, SEKbn 20 16 97% of portfolio below 70% LTV ● Average loan-to-value of 12 56 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 - 2024, per cent and SEKm of private mortgage loans in Swe
Slide 27: Liquidity coverage and funding ratios
201% Liquidity Coverage Ratio Q4 2024, SEKbn Q4 2024, SEKbn 4 37 10 88 127% 3 Net Stable Funding Ratio 321 311 233 173 >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 28: Swedbank
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