Swedbank (SWED) investor relations material

Executive summary

• Net profit reached SEK 7.2bn in Q2 2026, with adjusted return on equity at 15.5% and adjusted cost/income ratio at 0.39, reflecting strong profitability and operational efficiency.

• Strong volume growth across all home markets, with broad-based income growth driven by higher business volumes and increased activity.

• New organisational structure implemented to support the financial plan and improve efficiency.

• Settlement reached with New York State DFS, closing all investigations into historical shortcomings.

• Extraordinary costs of SEK 860m were recognized, mainly related to transformation and efficiency initiatives.

Financial highlights

• Q2 2026 profit: SEK 7,195m, down 2% sequentially; H1 2026 profit: SEK 14,540m, down 10% year-over-year.

• Total income increased 6% quarter-over-quarter to SEK 18.1bn, driven by higher net interest and commission income.

• Net interest income rose 1% QoQ to SEK 11.3bn, supported by higher business volumes and improved deposit margins.

• Net commission income grew 7% QoQ to SEK 4.5bn, benefiting from strong asset management and card activity.

• Total expenses increased 14% QoQ to SEK 7.9bn, including SEK 860m in extraordinary costs.

Outlook and guidance

• Growth in Sweden, Estonia, and Latvia is projected around 2%, and Lithuania at 3% in 2026.

• Home market economies expected to grow 2–3% in 2026; global growth forecast at 3%.

• Focus remains on strengthening customer interactions, growing business volumes, and increasing efficiency.

• Restructuring program to reduce FTEs and incur SEK 1.3bn in extraordinary costs in 2026.

• Dividend payout ratio targeted at 60-70%, with a normalized CET1 capital buffer of 200bps and ROE of at least 15%.