Swedbank (SWED) Investor presentation summary

Strategic direction and business model

• Focus on delivering a sustainable return on equity of at least 15% through volume growth, ancillary income, and cost discipline.

• Maintains a large customer base in Sweden and the Baltics, with a diversified product range and digital-physical presence.

• Emphasizes efficiency, technology, and strict credit standards to support growth and capital efficiency.

• Targets growth in line with or above market in lending and deposits, especially in corporate lending and mutual funds.

• Dividend policy set at 60-70% of profit, with a strong CET1 capital buffer and cost-to-income ratio target of 0.40 or below.

Financial performance Q2 2025

• Total income of SEK 17.0bn and net profit of SEK 7.9bn, with EPS after dilution at SEK 6.99.

• Return on equity at 15.4%, cost/income ratio at 0.36, and credit impairment ratio at 3 bps.

• CET1 capital ratio at 19.7% with a buffer of 450bps, LCR at 164%, and NSFR at 128%.

• Lending volumes increased by 1.6% QoQ to SEK 1,817bn; deposit volumes up 3.0% QoQ to SEK 1,314bn.

• Net interest income declined 5% QoQ due to lower lending income and higher deposit expenses.

Asset quality and risk management

• Credit impairments for Q2 at SEK 150m, corresponding to a 3bps impairment ratio.

• Property management loans represent 17% of total loans, with average LTVs of 52-54% and low exposure to high LTV segments.

• Total credit impairment provision ratio at 0.34%, with the majority of loans in Stage 1.

• Swedish mortgage portfolio characterized by low LTVs (average 57%) and very low historical credit losses.