Swedbank (SWED) investor relations material

Executive summary

• Q3 net income was SEK 8,249m, up 15% QoQ and down 3% YoY; ROE was 15.6% reported and 16.0% adjusted, with diluted EPS of SEK 7.30.

• Higher net interest and commission income, seasonally lower costs and a SEK 701m net credit-loss reversal supported Q3 results.

• 9M net income fell 7% YoY to SEK 22,789m as higher costs more than offset revenue growth and lower credit losses.

• Priorities include stronger customer interaction, higher business volumes and improved efficiency under the 15/27 plan.

Financial highlights

• Q3 revenue was SEK 17,986m, up 5% YoY and down 1% QoQ; net interest income was SEK 11,568m and net commission income SEK 4,704m.

• Q3 costs fell 6% QoQ to SEK 7,417m but rose 23% YoY; they included SEK 483m for the DFS settlement and SEK 190m in restructuring costs.

• Profit before impairments increased 3% QoQ to SEK 10,569m; profit before tax rose 15% to SEK 10,541m.

• Financial transaction results fell 29% YoY to SEK 601m; other income declined 15% QoQ to SEK 1,114m, including lower net insurance income.

• 9M revenue rose 3% YoY to SEK 53,164m; costs rose 21% to SEK 22,153m, while adjusted 9M net income was SEK 23,674m.

Outlook and guidance

• Sweden, Estonia, Latvia and Lithuania were forecast to grow 2–3% in 2026; stronger real wages, purchasing power and investment supported the outlook.

• Targets include ROE of at least 15%, cost/income ratio not above 0.40, normalized CET1 buffer of 200bps and dividend payout ratio of 60–70%.

• Cost program targets SEK 1bn lower run-rate by year-end 2028; continued 2027 investments are expected to be offset by synergies.

• FTE is expected to reach ~16,800 by year-end 2026, excluding the PayEx divestment.

• A SEK 193m reduction in booked VAT costs relating to 2024 was expected in Q4 2026 following a tax authority decision.