Swedbank (SWED) Q1 2026 (Media) earnings summary

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 increased global uncertainty and geopolitical tensions, focusing on customer value and operational efficiency.

• Initiated a reorganization to enhance customer focus, volume growth, and efficiency, including centralizing IT and moving business development closer to customers.

• Completed integration of Entercard and Stabelo, strengthening consumer credit and mortgage offerings.

• Announced intention to divest PayEx and Entercard's unsecured consumer credit portfolio.

Financial highlights

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

• Net profit for Q1 2026 was SEK 7,345m, down 10% year-over-year and 10% sequentially.

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

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

• Credit losses increased to SEK 164m from a net recovery of SEK 141m a year ago.

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.

• Extraordinary costs of SEK 1.3bn expected for the remainder of 2026 due to reorganization and strategic review.

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