Swedbank (SWED) Q3 2025 earnings summary

Executive summary

• Q3 2025 profit rose to SEK 8,512m, with return on equity at 16.0% and EPS of SEK 7.53, reflecting strong operational performance amid global uncertainty.

• Cost-to-income ratio improved to 0.35, supported by strict cost control and digitalization efforts.

• Credit quality remained solid, with reversals of credit impairments and S&P Global upgrading the credit rating to AA-.

• Focused on sustainable growth, customer experience, and efficiency through technology and strict credit standards.

• Standard & Poor’s and SEC closed investigations without enforcement, but DOJ and DFS investigations are ongoing.

Financial highlights

• Net interest income for Q3 was SEK 10,819m, down 1% sequentially, mainly due to lower mortgage and deposit rates.

• Net commission income rose 6% to SEK 4,117m, driven by asset management and seasonal card commissions.

• Total income increased 1% quarter-over-quarter to SEK 17,105m; total expenses decreased 1% to SEK 6,030m, aided by VAT recoveries.

• Mutual funds saw a net inflow of SEK 9bn, raising assets under management to SEK 2,471bn.

• Profit before tax grew 8% sequentially to SEK 10,809m; net profit up 8% to SEK 8,512m.

Outlook and guidance

• Full-year 2025 costs expected around SEK 25.3bn, including VAT recoveries and FX effects.

• Further cost details for 2026 to be provided with Q4 results.

• Targeting a return on equity of at least 15% and a cost/income ratio not above 0.40.

• Continued focus on balancing volume growth and long-term profitability amid rate repricing.

• Ongoing digitalization and efficiency initiatives expected to improve customer service and operational performance.