Swedbank (SWED) Investor presentation summary

Financial performance and key metrics

• Q2 2024 total income reached SEK 18.2bn, with net profit at SEK 8.4bn and a return on equity of 17.5%.

• Cost/income ratio improved to 0.35, and credit impairment ratio was -6 bps, reflecting strong asset quality.

• CET1 capital ratio stood at 20.1%, providing a buffer of 500bps above requirements.

• Lending volumes grew 0.4% QoQ to SEK 1,804bn, while deposit volumes increased 1.3% QoQ to SEK 1,298bn.

• Net interest income declined 3.4% QoQ due to lower margins and market rates, despite higher lending and deposit volumes.

Strategic direction and business priorities

• Focus on leveraging a proven business model and pricing strategy, with 54% NII growth in 2023.

• Initiatives to grow share of wallet, including increased proactivity and 40,000 new long-term savings customers.

• Expansion in prioritized segments, such as Premium & Private Banking and improved corporate market shares in the Baltics.

• Operational excellence through digital platforms and process efficiency, targeting up to 1 million digital advisory interactions by 2025.

Sustainability and ESG commitments

• Published first Climate Transition Plan and expanded financed emissions targets to include shipping.

• 2030 targets include reducing financed emissions in key sectors and tripling sustainable lending volumes.

• Sustainable asset register reached SEK 90bn, with significant growth in green and social assets.

• Active participation in global ESG initiatives and alliances, such as Net-Zero Banking Alliance and Science Based Targets initiative.