Swedbank (SWED) investor relations material

Executive summary

• Net profit for Q1 2026 reached SEK 7.3bn, with earnings per share at SEK 6.50 and return on equity at 13.3%.

• Delivered stable results amid heightened geopolitical and economic uncertainty, with income at SEK 17,073m.

• Reorganisation focused on customer-centricity, efficiency, and digitalisation, including centralising IT and business development.

• Strategic moves included integrating Entercard and Stabelo, divesting PayEx, and clarifying the cards and consumer credit strategy.

Financial highlights

• Net interest income increased 3% sequentially to SEK 11,147m, driven by improved funding costs and full quarter from Entercard.

• Net commission income declined 2% quarter-over-quarter to SEK 4,172m, normalizing after Q4 one-offs, but increased 3% year-over-year.

• Total expenses rose 10% quarter-over-quarter and 13% year-over-year to SEK 6,881m, reflecting seasonality and full impact of Entercard.

• Profit before tax was SEK 9,356m, down 6% from Q4 2025 and 10% year-over-year.

• Earnings per share after dilution was SEK 6.50, down from SEK 7.22 in Q4 2025 and SEK 7.26 in Q1 2025.

Outlook and guidance

• Global growth outlook revised down by IMF amid increased geopolitical tensions and higher energy prices.

• Home markets expected to grow around 2% in Sweden, Estonia, Latvia, and 3% in Lithuania for 2026.

• Focus on card and consumer finance strategies, efficiency, and cost reduction, with SEK 1bn lower run-rate targeted by end-2028.

• Workforce to decrease from 17,350 to 16,800 by end-2027.

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