Swedbank (SWED) Pre-Close Call summary

Trading performance and revenue trends

• Corporate lending in Sweden grew 3.9% year-on-year in October, outpacing the market's 2.2% growth; market share rose to 15.1%.

• Retail deposits in Sweden increased 4.3% year-on-year in October, with a 17.6% market share; corporate deposits rose 1.8% with a 13.3% share.

• Baltic lending grew 14.3% year-on-year, with private and corporate lending up 12.3% and 16.7% respectively; total deposits in the Baltics rose 7.1%.

• Asset management commissions benefited from stock market gains in Sweden (6%), US (5.2%), and Europe (4.1%) by mid-December.

• Swedish mutual fund market saw net inflows in October and November, with outflows from active equity funds but inflows to index and fixed income funds.

Profitability and margins

• Retail deposit rates remained unchanged except for a 10–35 basis point increase on fixings over 12 months in Estonia.

• Card activity in Q4 is seasonally lower than Q3, impacting card commission income.

Balance sheet and liquidity position

• SEK 6 billion in interest-free deposits with the Riksbank from 31 October to 30 June next year, earning zero interest; lost income booked upfront.

• Asset quality at Q3 end: post-model adjustment at SEK 398 million after a SEK 196 million release; Entercard acquisition added ~SEK 400 million from Stage 1 loans.

• End-of-period FX rates, mainly from Baltic RWAs in euro, affect the balance sheet.

• Strengthening of the Swedish krona versus the euro noted as of 12 December.