Swedbank (SWED) Q2 2026 earnings summary

Executive summary

• Net profit for Q2 2026 was SEK 7.2 billion, with adjusted return on equity at 15.5% and cost/income ratio at 0.39, reflecting strong profitability despite SEK 860 million in extraordinary costs.

• All major U.S. investigations have concluded following a $50 million settlement, reducing legal uncertainties.

• Strong volume growth across all home markets, supported by higher business volumes and increased activity.

• New organisational structure and restructuring initiatives implemented to enhance efficiency and customer focus.

• Continued focus on customer interactions, business growth, and efficiency under the 15/27 plan.

Financial highlights

• Earnings per share for Q2 2026 were SEK 6.37 after dilution.

• Net interest income for Q2 was SEK 11,276 million, up 1% sequentially, driven by higher business volumes.

• Net commission income rose 7% quarter-over-quarter, supported by strong asset management inflows and higher card income.

• Credit impairments for Q2 were SEK 313 million (6 basis points), reflecting solid credit quality.

• Total expenses for Q2 were SEK 7,854 million, up 14% sequentially, mainly due to extraordinary restructuring costs.

Outlook and guidance

• Economic growth in Sweden, Estonia, and Latvia is forecast at 2% for 2026, and Lithuania at 3%.

• Cost guidance for 2026 remains at SEK 27.5 billion, excluding extraordinary costs and FX.

• Synergies from restructuring expected to lower run-rate costs by SEK 1 billion by end of 2028.

• Dividend payout ratio is targeted at 60-70%, with a normalized CET1 capital buffer of 200 basis points.

• Management expects continued growth in all home markets, supported by strong capitalisation and stable risk profile.